A clear shift of approach among companies in the US is towards strengthening their strategic credit risk management framework.
The 2024 Payment Practices Barometer survey for the US was conducted between the end of Q2 and the beginning of Q3 2024. Its findings should therefore be viewed with this in mind.
Key takeaways from the report for the US
More US companies go strategic in managing B2B payments risk
- Late payments from B2B credit transactions remain a major issue for US businesses, with half of all B2B invoices currently overdue, impacting their working capital management. Bad debts average 8% of all B2B credit sales, adding further financial strain, particularly in the chemicals sector.
- The main reason cited for late payments by US companies is administrative inefficiencies in the payment processes of B2B credit customers. Invoice disputes are common in the chemicals sector, and customer cashflow issues in the electronics/ICT industry. Overdue invoices are turned into cash on average 20 days past due.
Mixed outlook for US businesses as they grapple with economic concerns
- An increase in insolvencies during the year ahead is expected by half of the US companies in our survey, chiefly in the steel/metals sector. This negative trend could lead to financial distress, although businesses in the chemicals industry are more optimistic.
- Despite a strong outlook for the US economy this year, ongoing fluctuations in economic conditions remain a major concern for US companies looking ahead. This is felt particularly in the short-term in the steel/metals sector. The chemicals industry expresses most concern about long-term global economic headwinds.
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 the US and North America (USMCA), please download the full reports available in the related documents section below.
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