Sunday, August 14, 2022
News
NEWS HOME
»
PRN INDIA
Asia businesses struggle to offset losses from increased B2B bad debt, Atradius survey reveals
  SocialTwist Tell-a-Friend  
   

Alarming 60% increase in business-to-business (B2B) write-offs expected to pose a severe threat to liquidity of companies in Asia.

AMSTERDAM, June 28, 2022 /PRNewswire/ -- Chasing down unpaid B2B trade debt has become a major headache for Asian companies trading on domestic and export markets. They are facing sharply increased costs to manage customer credit risk in-house and thus protect cash flow from disruption caused by the current challenging economic and trading environment.

The problem becomes even more serious with long-term unpaid B2B trade debt (more than 90 days) that is written off as uncollectable despite several attempts to receive payment. In this situation businesses struggle to find additional sales, a measure that could help to offset their losses and thus avoid putting liquidity under pressure and a company's entire future at risk.

Severe warning signs of a mounting strain on business liquidity are evident in the staggering 60% increase in business-to-business (B2B) bad debts that could not be collected, compared to our survey in 2021. This is the major concern spelled out by businesses polled in seven markets in Asia (China, Hong Kong, India, Indonesia, Singapore, Taiwan, and Vietnam) and in the United Arab Emirates for the 2022 edition of the Atradius Payment Practices Barometer Survey for Asia.

Taiwan sounded the highest alarm, with a bad debt write-offs figure nearly three times higher than found in our past survey of the market -- now at 8% of the total value of B2B invoices. Businesses in Hong Kong and Singapore also said they were taking a serious hit from increased write-offs, both seeing an average 50% increase. Another country suffering was Indonesia, with a reported 40% increase in write-offs. Vietnam was included in the survey for the first time and companies there said liquidity was being dented both by write-offs (at 6% of the total value of B2B invoices) and unpaid B2B trade debt, which was affecting around half of the B2B trade value.

A further worry for companies in the current challenging economic and trading circumstances is the difficulty of recovering profits when they are experiencing a high impact from write offs. The Atradius survey in Asia reveals that 20% more companies than in the previous year reported an increased willingness to extend credit to B2B customers. This is a signal that current market conditions are very competitive and that businesses struggle to get the additional sales revenue that would make good the losses from write-offs. The survey also found that a serious concern for companies in the months ahead is the ability to keep pace with demand (33%) as well as resilience of demand from B2B customers (25%).

All this has sparked increased awareness among most businesses polled about the importance of strategic credit risk management in B2B trade, with one in two companies across the markets polled expressing interest in insuring B2B trade receivables to mitigate the impact of customer credit risk on the business.

Andreas Tesch, Chief Market Officer of Atradius, commented: "The outlook for growth in Asia remains relatively robust at around 5% in both this year and 2023. But many of the region's businesses operate across the world in the current deeply unsettled period, where the ongoing impact of the pandemic and geopolitical upheaval has meant a downward revision of the outlook for global growth to just above 3%. Companies in Asia are feeling the pinch from this widespread disruption in the global trading arena. Facing the increase in bad debt write-offs can be a warning sign of a business environment under financial stress. This certainly explains why the need for strong strategic credit management was seen to be a crucial theme throughout our survey across the region's major economies."

Roeland Punt, Atradius Regional Sales Director for Asia, added: "Given the ongoing uncertainty in the market, we don't expect the bad debts trend to recover quickly. The anxiety about the longer time it takes business to collect overdue payments from B2B customers remains acute. The credit management processes of companies will be put to the test, and those businesses which have a flexible and holistic approach to the issue will be better well placed to navigate the troubled waters that may lie ahead."

The Atradius Payment Practices Barometer for Asia Pacific - June 2022  edition can be downloaded from the Atradius website at Atradius Group website  (Publications section). It further provides in depth analysis of how businesses in key markets in Asia Pacific  manage payment default risks related to selling on credit to B2B customers. Topics covered include: payment terms, the time it takes to collect invoices, managing payment delays, the impact of payment delays on business, and expected business trends.

About Atradius: Atradius is a global provider of credit insurance, surety and collection services, with a strategic presence in over 50 countries. The credit insurance, bond and collection products offered by Atradius protect companies around the world against the default risks associated with selling goods and services on credit. Atradius is a member of Grupo Catalana Occidente (GCO.MC), one of the largest insurers in Spain and one of the largest credit insurers in the world. You can find more information online at https://group.atradius.com.

For further information:  
Atradius Group Website
www.atradius.com.hk

Connect with Atradius on Social Media:  
Twitter
LinkedIn
YouTube

Logo -  https://mma.prnewswire.com/media/712156/Atradius_Logo.jpg

More News by PR Newswire India

Global supply chain reconfiguration to persist through 2030

Hakuhodo and DAC launch H+, a strategic group to "Empower Your Digital Future" with one of APAC's most distinctively audience-centric data marketing approaches

ONESIGHT ESSILORLUXOTTICA FOUNDATION ANNOUNCES PUBLICATION OF NEW ARTICLE

Recorded Future Launches National Cyber Defense Intelligence Kit

Launched to immediate global acclaim via Livestream: Absen's pioneering KLCOB Micro LED product series

SEMI Applauds President Biden's Signing of CHIPS and Science Act of 2022

Anthony Di Iorio Opens Whitelist for New Global Project to Empower a User-Controlled Internet; Project to Be Unveiled November 3

New measures agreed to strengthen the partnership between Mongolia and China

Focused Photonics Inc. Selects Wolters Kluwer CCH® Tagetik Expert Solution for its Disclosure Management Needs

Snapmaker Announces Artisan 3-in-1 3D Printer is Available for Pre-order Today

Frost & Sullivan Institute Recognizes Samsung Biologics with the 2022 Global Enlightened Growth Leadership Award for its Commitment to Sustainable Growth

DevOps Institute Releases First Ever 'Global SRE Pulse 2022' Report

WorkForce Software Honored Alongside IBM and Google in Comparably's Annual Ranking of Top Companies for Having the Best Leadership Team

Aon appoints James Platt as Chief Digital Officer and Mindy Simon joins the firm as Chief Operating Officer

Merck Becomes One of the First CDMOs to Provide Full Viral Vector Offering with Launch of VirusExpress® 293 Adeno-Associated Virus Production Platform

Satellite Software Innovator Antaris Announces Close of $4.2 Million Seed Funding Round to Accelerate Development of Software Solutions for Space

GOLDIAM reports its Q1FY23 results, share of Lab grown diamond & jewellery strengthens further

Novaliq submits New Drug Application seeking approval for first-of-a-kind Dry Eye Disease Treatment CyclASol®

Nobu Hospitality Expands its Footprint in Asia Pacific

Gunzilla Games Raises $46M to Redefine the Battle Royale Genre By Letting Players Trade Their In-Game Items in "Off The Grid"

Deepak Nitrite Demonstrates Strong Topline Performance with 35% Y-o-Y Growth

A leading ERP company, Focus Softnet eyes revenues of 160 crores, projects a growth of about 20% Y-O-Y

Quest Global Becomes Arm Approved Design Partner

GCLSI Receives French Carbon Footprint Certification for Its 182 and 210 Series of Photovoltaic Modules

Triumph International India launches their first exclusive retail store in Pune

Indian Ice-Cream Manufacturers' Association (IICMA) met with Finance Minister Nirmala Sitharaman to discuss GST rates on supply of ice cream by ice cream parlours in India

Dyninno opens new office in Cyber City; Plans more offices in Gurugram and Mumbai

Woxsen University bestows Chair Professorships in honour of International Experts

People Matters TechHR 2022 Brings Fresh Eyes to the World of HR

PACORR Launches Melt Flow Index Tester - Fully Automatic Version

RateGain Launches Airline Travelers' Forecast to Help Commercial Teams Drive Higher ROI

Thai Digital Content Gaining Increasing Recognition Around the World

Crave InfoTech launches White Paper on Top Supply Chain Challenges

GRL accelerates the authorization of biometrics devices for Government of India projects

Everest Group Names Automation Anywhere a Leader in the inaugural Task Mining PEAK Matrix® Assessment 2022

China Wuling's First Global Electric Vehicle Air ev Rollouted, First Step In Indonesia

FRONTIER BIOTECHNOLOGIES ANNOUNCES POSITIVE PHASE 1 RESULTS OF ITS FIRST CORONAVIRUS MAIN PROTEASE (MPRO) SMALL MOLECULE INHIBITOR, LAYING FOUNDATION FOR THE TREATMENT OF ACUTE AND LONG COVID

GIGABYTE Releases 600 series BIOS updates ready for Intel's upcoming new-gen processors

Soroco Named a Leader in Everest Group's PEAK Matrix® for Task Mining Technology Provider 2022

Starburst Celebrates 10th Anniversary of Trino

Point-of-Care Ultrasound Certification Academy to Host World Conference

The "Picturesque and Dynamic Zhejiang" Global Short Video Competition Launches

BlackBerry Commended by Frost & Sullivan for Optimizing Edge-to-cloud Performance, Security, Privacy, and Scalability with its IVY Platform for Automakers

Amwell Applauded by Frost & Sullivan for its Comprehensive Digital Care Delivery Enablement Platform, Converge™

Prominent Stanford University scientist and cellular reprogramming innovator will oversee all research for Turn Bio

Axis Bank in partnership with CRMNEXT wins the Best CRM Implementation Award by Asian Banker

Godrej Properties Ltd. unveils insights from Home Livability Factors research

Gear Up with All New Helix Metalfit 3.0 Smartwatch Launched by Timex Group India

Roundtable with Leading Doctors and Youth Aims for a Tobacco-Free Future for India

Catalytic Investment to Improve Community Health Care for Millions Across Africa

DIFC Launches First Global Family Business and Private Wealth Centre

2022 ITOE - Home Lifestyle Expo Opens, Provides Strong Impetus for Development of Digital Trade

FRIMLINE LAUNCHES INDIA'S 1st ORAL CARE RANGE FOR PREGNANT WOMEN

Aptus Value Housing Finance India Limited announces Q1 FY23 Results

Tata Communications enhances InstaCC™ Platform with digital features

/C O R R E C T I O N -- Lentra/

Leading Solar Energy Solution Provider Haitai Solar Launches IPO on Beijing Stock Exchange

Kiko Live to be launched on ONDC in September

Clarivate Selected by Singapore's National Library Board to Play a Part in Building Libraries of the Future

TCL Reaffirms its Leadership in Mini LED TVs in 2022

NID Foundation unveils Heartfelt-The Legacy of Faith; A book showcasing PM Modi's relationship with the Sikh community at Melbourne

AirCarbon Exchange Offsets Emissions Through to December 2023

Celebrate independence from the worries of interest rates with Tata Housing Development Company's 'Its Interesting' campaign with 3.50% interest rate for 12 months in the 75th year of Independence

Xinhua Silk Road: E. China's Wuxi city steps up biomedical industry development

M/V Riva Wind and M/V Arizona Both Sail from Ukraine with 105,000 Tons of Grain

Atlanta Site Strengthens Sims Lifecycle Services' Operational Footprint

PRA Group Leader LaTisha Tarrant Named Chief Human Resources Officer

Media Advisory - BMO Financial Group to Announce its Third Quarter 2022 Results

Vieworks Wins FDA Approval for Its Newest VIVIX-S F series

GACL Financial results for the first quarter ended 30th June 2022

Strong Technical Advantages of TANK Platform, GWM TANK300 Will Bring a New Intelligent Off-road Experience

Bitget Launches $200 Million Protection Fund To Safeguard Users' Asset Security

Chandigarh University joins hands with Punjab Remote Sensing Centre for resources management and disaster mitigation

Saudi Arabia to Bid for the 2026 AFC Women's Asian Cup

FIRMENICH DELIVERS RECORD RESULTS DESPITE CHALLENGING MACRO-ECONOMIC ENVIRONMENT

 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
INDIA WORLD ASIA
Bihar model to be replicated in whole co...
Nigerian national apprehended with 30 gm...
2 more persons arrested in connection wi...
Women have to sleep with someone to get ...
Disturbance of peace by China will impac...
Gurugram: Sr citizen dies by suicide by ...
More...    
 
 Top Stories
Gaijatra Festival of Nepal: A proce... 
IOA felicitates Birmingham CWG 2022... 
Uttarakhand Police detains District... 
PGIMER honours families of 17 brave... 
China doublespeak - Envoy says Taiw... 
Anti-Narcotic Task Force busts drug... 
North East Delhi violence: Ad-hoc s... 
Swami Prasad Maurya sends Rs 11.50 ...