According to a report published on July 8, 2026, by trade credit insurance company Atradius, rising risks in business-to-business transactions are prompting companies to extend more trade credit to their clients. The survey, which evaluated 2,145 businesses across mainland China, Hong Kong, India, Japan, Singapore, Taiwan, and Vietnam, revealed that over 80% of suppliers experienced payment delays. Atradius noted that bad debt losses have ticked upward across the region, with the manufacturing sector and businesses based in Hong Kong recording the highest frequency of these increases.
To manage this risk, the majority of surveyed companies across these markets limit their payment windows to a maximum of two months from the date of the invoice, keeping extended terms rare. These tighter conditions coincide with broader operational challenges, as most firms report reduced working capital, less predictable cash flow planning, and constrained investment budgets. Additionally, nearly a third of the businesses face elevated financing costs, while a quarter have grown increasingly reliant on external financing options. Despite the general trend toward caution, large industrial corporations and companies in Vietnam remain the most likely in the region to lengthen their payment timelines rather than shorten them.
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