Modern Australian
Men's Weekly

.

Coface Asia Payment Survey 2025 Companies expect payment behaviours to worsen amid economic uncertainty

HONG KONG SAR / SHANGHAI & BEIJING, CHINA / TAIPEI, TAIWAN / SYDNEY, AUSTRALIA / TOKYO, JAPAN - Media OutReach Newswire - 11 June 2025 - The Asia Payment Survey, conducted by Coface in Q1 2025, provides insights into the evolution of payment behaviour and credit management practices of about 2,400 companies across the Asia Pacific region.

Respondents are active in nine markets (Australia, China, Hong Kong SAR, India, Japan, Malaysia, Singapore, Taiwan and Thailand) and 13 sectors.

  • Average payment terms rose slightly to 65 days in 2024 from 64 in 2023
  • The average payment delay was unchanged at 65 days in 2024 but the share of companies experiencing payment delays dropped to 49%.
  • The share of companies reporting ultra-long payment delays (ULPDs[1]) exceeding 2% of annual turnover rose to a new high at 40%, up from 23% in 2023. Wood, Agro-food and Automotive reported the highest increase.
  • 57% of companies expect payment behaviours to worsen in the next six months, citing slowing demand, competitive pressure, and rising costs as top risks.
  • 33% of companies expected business outlook to deteriorate in 2025.
Coface Asia Payment Survey 2025


"Asia-Pacific experienced a slowdown in growth in 2024 due to slow growth in global demand, rising costs and high interest environment. The record surge in ULPDs signals that companies expect to face mounting financial strain. Along with escalating tariffs, businesses are bracing for a more volatile trade and policy environment. We have revised the GDP growth forecast for Asia to 3.8% in 2025. " said Bernard Aw, Chief Economist for Asia-Pacific at Coface.

Credit terms still tight and may tighten ahead

Credit conditions remained tighter in 2024 compared to before 2023. Payment terms rose from 64 days in 2023 to 65 but below the five-year average of 69 days in 2018-2022.

Ten of the 13 sectors surveyed saw their payment terms increase in 2024. The sharpest rise was recorded in the automotive sector followed by textiles and chemicals. Increasing competition in the auto market prompted dealers to be more flexible in granting credit and to use it as a competitive tool.

Looking ahead, two-thirds of companies expect shorter payment terms, reflecting caution and higher priority for cash preservation amid heightened uncertainty.

Rising concern as ultra-long payment delays hit record high

The average payment delay remained stable at 65 days, unchanged from 2023.

Transport and Automobile reported higher payment delays (respectively +2% and +1% vs 2023).

However, the share of companies reporting ULPDs - payment delays over 180 days and exceeding 2% of annual revenue - rose dramatically to a new high at 40%, up from 23% in 2023. This represent a very high risk, given that 80% of these delays have never been paid, according to Coface's experience. Such delays were highest in China, India, Thailand and Malaysia. All 13 sectors also saw increased ULPDs, with the most notable increases in Wood (+37%), Agro-food (+20%) and Automotive (+18%).

This trend is expected to continue over the next six months as 57% of companies expected a deterioration in late payments.

Outlook: Shifting trade policies expected to impact economic sentiment

We expect the economic outlook for 2025 to continue to weaken. Higher tariffs and shifting trade policies have increased uncertainty over global economic policy, weighing heavily on business spending and consumer confidence. In addition, companies also cite over-competitive pressures, slowing demand and higher labour costs as additional risks.

33% of respondents expect business activity to deteriorate in 2025 (vs 2024), more than double as compared to last year's survey. Taiwan and Singapore were the most pessimistic, where over 4 out of 10 respondents expect deteriorating business activity.

'Asia-Pacific growth slowed in 2024 as demand weakened. The rebound in trade last year has marginally offset the decline in 2023. In the face of continued and heightened geo-political uncertainty and increasing costs, many businesses are anticipated to strengthen their credit management measures and prioritise cost management.' said Bernard Aw, Chief Economist for Asia-Pacific at Coface.


[1] Payment delays that exceed 180 days and exceeding 2% of annual revenue

https://www.coface.com.hk/news-economy-and-insights/coface-asia-payment-survey-2025-companies-expect-payment-behaviours-to-worsen-amid-economic-uncertainty
Hashtag: #Coface


The issuer is solely responsible for the content of this announcement.

COFACE: FOR TRADE

As a global leading player in trade credit risk management for more than 75 years, Coface helps companies grow and navigate in an uncertain and volatile environment.

Whatever their size, location or sector, Coface provides 100,000 clients across some 200 markets. with a full range of solutions: Trade Credit Insurance, Business Information, Debt Collection, Single Risk insurance, Surety Bonds, Factoring. Every day, Coface leverages its unique expertise and cutting-edge technology to make trade happen, in both domestic and export markets. In 2024, Coface employed ~5 236 people and recorded a turnover of ~€1.84 billion.

Refurbished iPads Are Better Than New Ones (Here's Why)

Image by rawpixel.com on Freepik Apple's refurbished iPad program has quietly become one of the best deals in tech. While everyone obsesses over the ...

Your Guide to Finding the Right GP: What Perth City Doctors Offer Today

Choosing a General Practitioner (GP) is one of the most important health decisions you’ll make. Luckily, Perth’s vibrant CBD now hosts a new ge...

Why Every Mining Operation Needs a Robust Safety Management System

Mining is one of the backbones of the Australian economy, particularly in Western Australia. Back in 2019-20, mining contributed 10.4% of Australiaâ...

Australian Classic Literature Enjoys Resurgence

Welcome back to the good old days of storytelling! As the modern world becomes increasingly more demanding, returning to childhood favourites offers...

How to Choose the Right Lawyers in Sydney for Your Situation

When faced with a legal issue, selecting the right legal representation can make all the difference. Whether you're dealing with a personal injury, ...

Building a Governance Model for Headless Content Management at Scale

Image by pch.vector on Freepik There's never been a better time to implement a headless content management system (CMS) to gain the flexibility and ...

Understanding Trade Insurance: Essential Protection for Businesses

Image by Drazen Zigic on Freepik In the current economic environment, trade insurance is an important element for companies trading both locally an...

Choosing the Right Timber for External Cladding

Timber cladding is one of those finishes that pulls double duty: it makes a building look warm and welcoming, and it quietly shields the frame from ...

Top Services Offered by Diesel Mechanics in Brisbane

Keeping a diesel vehicle running at its best takes more than the occasional oil change. When you invest in regular specialist care, you protect the ...

Top 5 Benefits of Hiring Professional House Removalists

Moving day should feel like the start of a new adventure, not the end of your patience. Yet once the settlement papers are signed and the champagne ...

Navigating the Digital Landscape: Managed IT Solutions and IT Services in Townsville

As technology advances at an unprecedented pace, companies must adapt to embrace the transformation ahead. With an evolving technology landscape, mana...

Types of Catering You Should Consider for Your Next Event

Choosing the right type of catering service can elevate your event from ordinary to unforgettable. Whether it’s an elegant wedding, corporate func...

Understanding the Benefits of Split System Installation for Your Home

Climate control is essential to maintaining comfort in your home, especially during the extreme temperatures that many regions face. Whether you’r...

Best Aluminium Window Sliding Designs for Natural Light and Airflow

Bringing natural light and airflow into a space is one of the most efficient ways to create a healthy and comfortable home. In Sydney and across Aus...

Maximising Operational Efficiency: Electric Winch Hire Australia and Hydraulic Power Pack Hire Solutions

Image by jcomp on Freepik From urban construction sites and remote mining operations to coastal maritime facilities, specialised equipment solutio...

Navigating the System: Your Guide to Support Finding Work with a Disability Around Melbourne

Image by freepik Finding the right job can be a challenge for anyone, but it can feel particularly daunting when you're also navigating life with a ...

Say Goodbye to Draughts and Hello to Savings: Your Guide to Perth Window Replacement

Image by prostooleh on Freepik Are your windows looking worse for wear? Are you paying a hefty power bill due to sneaky draughts and poor insulation...

How to Choose the Right Horse Trailer for Your Riding Needs

Many horse owners travel long distances for riding lessons, competitions, or to move horses between properties. Having a safe and reliable trailer i...