In the Atradius Payment Practices Barometer, companies from different countries are asked to evaluate the payment practices of their domestic and international business partners and their company's credit management in general.
Respondents from Hong Kong were some of the most likely to suffer a financial impact as a result of the late payment of invoices by their customers. As a result, they tended to be more likely than average to increase their use of a number of credit management practices. They were also more focused on having reliable current information about their customers’ ability to pay for the products and services they purchase before extending credit.
This reliance on current financial information likely plays a meaningful role in the decisions about payment terms. Respondents from Hong Kong were less likely to use standard payment terms rather showing more flexibility to customise their terms to the expectations of their customers’ payment behaviour. This translated into a greater likelihood of differentiating payment terms when selling to foreign customers than to domestic customers.
Detailed results on payment practices in China are also available.
For overall group findings, please also see Payment Practices Barometer: Mandatory Payment Terms in the EU -- October 2010.