Late payments are a clear concern for companies polled in Japan. 37% of invoiced B2B sales were overdue.
The 2023 Payment Practices Barometer survey for Japan was conducted between the end of Q2 and the beginning of Q3 2023, and findings should therefore be viewed with this in mind.
Key takeaways from the report for Japan
Cashflow concerns prompt cautious approach to selling on credit
- The prudent approach to selling on credit in B2B trade suggests that companies polled across all sectors in Japan are concerned about delayed payments by B2B customers and the risk of cashflow problems. Overall, 37% of B2B invoices are currently overdue, with the machines sector hardest hit. Bad debts affect 7% of all B2B sales, with the chemicals sector particularly affected.
- The main reasons cited for late payments were invoice disputes and temporary liquidity issues or insolvencies among B2B customers. A staggering 79% of businesses polled in Japan said the waiting time to collect payments from customers had either deteriorated or remained unchanged from the previous year.
Outlook cloudy amid concern about inflation and tighter credit conditions
- The chief concern for the year ahead among companies polled in Japan is the impact of tighter credit conditions after actions taken by the central bank. This is acutely felt across all the sectors surveyed. Another significant worry is how businesses will be affected by inflationary pressures, with a potential increase in production costs and reduction in consumer spending power.
- The unpredictability surrounding energy prices adds an additional layer of unease, prompting companies in Japan, especially in the electronics/ICT sector, to devise comprehensive strategies to mitigate risk and ensure long-term financial sustainability.
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 2023 survey results for Japan, please download the full report available in the related documents section below. The Statistical Appendix to the regional report is also available for download in the section below.
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