B2B payment practices trend, Australia 2024

Key takeaways from the report for Australia 

The 2024 Payment Practices Barometer survey for Australia was conducted in Q1 2024, and findings should therefore be viewed with this in mind.

Rising insolvency risk off business radar despite growing cash struggles

• Rising interest rates sharply curtailed business borrowing capacity, prompting an increased use of trade credit. 59% of businesses polled in Australia said they now rely on this, while also reporting a 35% increase in trade credit offered to B2B customers.
   
• Payment terms were extended by nearly two weeks by Australian companies, and now average 35 days from invoicing. The primary factors cited were to foster long-term customer relationships, boost sales, and gain valuable B2B customer credit information.
   

Domestic economy key worry for Australian business prospects

• Companies polled in Australia expressed a range of opinions regarding the prospects for B2B payment practices during the upcoming year. Overall, 50% of these anticipate an improvement, and this rose to 67% of businesses in the construction sector. 36% of companies said they expect no change in payment practices.

• However, there was more pessimism expressed in the Australian agri-food industry. 30% of companies polled, three times as many as last year, said they anticipate a negative trend in B2B payment practices, highlighting the need for businesses adaptability and robust credit strategies.
   

The Atradius Payment Practices Barometer is an annual survey of business-to-business (B2B) payment practices in markets across the world. Its findings can give valuable insights into the current dynamics of corporate payment behaviour in B2B trade. It can also help companies doing business, or planning to do so, in the markets polled to identify emerging future trends in the payment practices of B2B customers. 

Interested in finding out more? 

For a complete overview of the 2024 survey results for Australia, please download the full report available in the related documents section below. 

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