HONG KONG SAR – Media OutReach Newswire – 1 April 2025 –Coface’s survey on Chinese corporate payment behavior shows growing caution among suppliers to offer credit sales and extended collection period in 2024.
Companies generally extended their payment terms, aided in part by third-party risk mitigation tools that may provide some comfort for suppliers to accommodate client needs.
Longer payment terms have mitigated increases in payment delays, which rose only slightly from 64 days to 65 days.
However, if payment delays are added to payment terms, the total average waiting time between product delivery and payment collection increased from 133 days in 2023 to 141 days in 2024.
Among respondents that experienced ultra-long payment delays (ULPDs, above 180 days), almost half reported late payment worth at more than 2% of annual turnover. This proportion was significantly up from 33% in 2023 and implied a rise in non-payment risk.
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