B2B payment practices
Payment Practices Barometer | Americas
Brazilian respondents preference for cash sales is growing
Respondents in Brazil seem to prefer the safety of sales to their B2B customers on cash than on credit.
Mexican respondents least likely to offer credit terms
Survey respondents in both the U.S. and Canada have historically shown a preference for selling to their B2B customers on cash rather than on credit terms.
Payment terms in U.S. and Mexico shorter than last year
In response to a heightened perception of the payment default risk arising from trading on credit with B2B customers, U.S. and Mexican respondents requested quicker payment of invoices than one year ago.
Checking creditworthiness and reserving against bad debts at the heart of credit management
Consistent with the heightened perception of the payment default risk commented on earlier, the credit policies of both U.S. and Mexican respondents revolves around the assessment of a prospective buyer’s creditworthiness prior to any trade credit decision.
One fourth of the total value of invoices not paid on time
On average, one fourth of the total value of the invoices issued by USMCA respondents to their B2B customers was not paid by the due date.
Payment practices outlook in U.S. and Canada more pessimistic than in Mexico
Most respondents in the USA and Canada (55% and 52% respectively) do not expect payment practices of B2B customers to change significantly over the coming months.