Welcome!

News Feed Item

Atradius Survey Finds B2B Payment Defaults on the Rise in Asia-Pacific

AMSTERDAM, November 21, 2012 /PRNewswire/ --

Over 30% of B2B receivables unpaid at due date, more than 5% defaulted on  

Compared to one year ago, businesses in Asia-Pacific experienced a significant increase in the value of B2B receivables written off as uncollectable from 3.6% in 2011 to 5.0% in 2012. According to the November edition of the  Atradius Payment Practices Barometer, focusing on Asia-Pacific, over half of the survey respondents anticipate intensifying their efforts to better protect their businesses against deterioration of trade credit risk.

The November 2012 Atradius Payment Practices Barometer is based on feedback from 1,661 businesses in Australia, China, Hong Kong, India, Indonesia, Japan, Singapore and Taiwan. At overall survey level, around 30% of the total value of domestic and foreign B2B invoices issued by survey respondents in the region was unpaid at the due date. The highest percentage of overdue B2B invoices was approximately 35% in Hong Kong and the lowest less than 20% in Japan.

More than 10% of invoices remained unpaid after three months overdue and over 5% of B2B receivables were defaulted on. This percentage reached a high of 7% in India and Singapore, and a low of around 2% in Japan. The impact of the high percentage of invoices that were paid late is evidenced by the variance between the average payment term recorded in Asia-Pacific (32 days) and the average Days Sales Outstanding of 44 days.

Compared to the same survey period last year domestic payment delays due to liquidity restraints rose to 53.5% compared to 47.7% in 2011 for respondents in Asia-Pacific. Indonesian respondents (70%) experienced the most problems with past due domestic B2B receivables. Payments from foreign customers were mostly delayed because of the complexity of the payment procedure or inefficiencies of the banking system (around 45% of respondents in both cases).

To reduce payment delays and payment defaults, over half of the survey respondents (53%) anticipate checking buyers' creditworthiness more often, particularly respondents in Singapore (68.0%) and China (64.5%).

Andreas Tesch, Chief Market Officer of Atradius N.V. commented, "Atradius expects exports from the Asia-Pacific region to grow just 3.4%this year; less than half that of 2011. While we forecast another 5% reduction in insolvencies in the US and stabile insolvency environments in other primary Asia-Pacific export markets, such as China, Japan and Hong Kong, continued uncertainty in the EU, including insolvencies stabilizing at a higher level, will limit export growth. In addition, GDP growth in China, the largest export and import market in the region, is expected to again slow, to 7.7%, in 2012 and to tick up to only 8.1% in 2013 reflecting reduced exports to western customers and a potential slowdown in domestic and important demand."

Tesch concluded, "On average, the trade credit risk environment for survey respondents deteriorated in 2012. Overdue payments to respondents inched up and payment defaults climbed 25% in 2012 raising concerns about the overall trade credit risk environment. In this environment, managing trade credit risk to protect cash flow and financial stability is of great importance. Our goal is to help these businesses achieve the security they need to continue driving global growth."

The complete report highlighting the findings of the November edition of the Atradius Payment Practices Barometer focussing on Asia-Pacific can be found in the Publications section of the Atradius.com website.

About Atradius

The Atradius Group provides trade credit insurance, surety and collections services worldwide. With a presence through 160 offices in 45 countries, it has a market share of approximately 31% of the global trade credit insurance market. Atradius has access to credit information on 100 million companies worldwide and makes more than 20,000 trade credit limit decisions daily. Its products help protect companies throughout the world from payment risks associated with selling products and services on credit.


http://www.atradius.com

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
SYS-CON Events announced today that Systena America will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Systena Group has been in business for various software development and verification in Japan, US, ASEAN, and China by utilizing the knowledge we gained from all types of device development for various industries including smartphones (Android/iOS), wireless communication, security technology and IoT serv...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...