North American B2B Payment Risks Rise Amid Economic Uncertainty
Event summary
- Atradius survey of 600 North American businesses reveals 43% of B2B sales conducted on credit terms, with 23% of receivables overdue.
- One-third of businesses report reduced cash availability, citing customer liquidity constraints as the primary cause of late payments.
- Economic slowdown, inflation, and elevated interest rates are identified as top threats to payment performance in the coming year.
- Despite stable payment performance, insolvency concerns are growing, suggesting businesses are managing through financial pressure.
The big picture
The Atradius survey highlights a growing disconnect between stable payment performance and increasing financial strain among North American businesses. While late payments are largely contained, underlying liquidity pressures and insolvency concerns suggest a more complex risk environment. This trend reflects broader economic challenges, including elevated interest rates, inflation, and geopolitical uncertainty, which are creating a more cautious outlook for B2B trade.
What we're watching
- Economic Slowdown
- How macroeconomic conditions will affect payment performance and insolvency rates in North America.
- Interest Rates
- Whether elevated borrowing costs will continue to constrain access to finance and working capital management.
- Payment Risk Management
- The pace at which businesses adopt disciplined approaches to mitigate growing payment risks.
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