The Atradius Payment Practices Barometer for May 2018 reveals that the Asia Pacific region is experiencing a longer time to convert B2B invoices into cash. Poor payment behavior, lack of information about customers, and economic and political risks have led to a reduction in the proportion of B2B sales made on credit terms. However, the frequency of late payments has declined, and the proportion of overdue B2B invoices has also decreased. The main reason for writing off B2B receivables as uncollectable is the customer going bankrupt or out of business. The use of trade credit in B2B transactions in the Asia Pacific countries surveyed is lower in 2018 than it was in 2017, with the exception of Australia and Singapore. This decrease marks the third consecutive decline, mainly due to a decrease in transactions on credit with foreign B2B customers. Japan seems to be the most inclined to offer credit terms, with an average of 49.1% of B2B sales on credit terms.
