Amid a severe challenge to maintain cashflow there was an 85% increase in the number of Taiwan companies who took significantly longer to collect overdue payments.
The 2023 Payment Practices Barometer survey for Taiwan 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 Taiwan
Sharp focus on measures to mitigate liquidity risks
- Late payments now affect 54% of all B2B invoices, but bad debts dropped slightly to 6% of B2B invoices. Disputes over invoices was cited as the main reason for late payments. Businesses in Taiwan also had a strong focus on Days-Sales-Outstanding (DSO), with a range of measures adopted to mitigate potential liquidity risks.
- More time and resources were spent on chasing unpaid invoices as part of improved credit control procedures. Financial resilience was boosted by seeking bank loans and trade credit.
Widespread optimism despite downside risks on the horizon
- A widespread mood of optimism was expressed about the year ahead by Taiwan businesses despite some concerns about the global economic landscape. 66% of companies polled said they anticipate increasing demand for their products and services, this positivity particularly evident in the chemicals sector. A more cautious feeling about future sales was found in the electronics/ICT sector, reflecting a softening of global demand in that area.
- 61% of businesses surveyed in Taiwan also told us they expect profit margins to increase during the coming months. The chemicals sector was again particularly optimistic, probably due to demand for specialised chemical products and their effective cost management 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 2023 survey results for Taiwan, 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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