This report from Atradius examines the credit terms between both domestic and foreign business-to-business (B2B) customers in Asia Pacific and is based on a global survey.
Who Pays on Time?
Companies in China are the least inclined to use trade credit in any B2B transactions (35.7% domestic and 27.5% foreign), while Japan is the most likely to use trade credit in a domestic setting (64.3%), and Hong Kong with foreign B2B customers (51.3%). The main reason for companies to offer credit terms is to build long term trade relationships.
The major reason domestic payments are late is lack of liquidity (50.1%), while foreign payment delays are due to complexity of the payment procedure (47.8%).