Asia's business-to-business credit environment is experiencing a growing divide between resilient large firms and vulnerable smaller companies, according to the Atradius Payment Practices Barometer Asia published on July 8, 2026. The survey, which analyzed feedback from 2,145 suppliers across China, Hong Kong, India, Indonesia, Japan, Singapore, Taiwan, and Vietnam, reveals that risk is becoming more concentrated rather than widespread, masking a widening gap in performance.
Two-Speed Credit Landscape
Silvia Ungaro, Senior Advisor on B2B payment trends at Atradius, warned of a two-speed credit landscape: "Risk is becoming more concentrated rather than widespread, masking a widening gap in performance. Stronger companies sustain stable payment behaviour, while weaker segments face rising strain that remains less visible in aggregate data."
The survey found that over 80% of suppliers have been affected by late payments, highlighting a weakening in payment discipline primarily driven by customer cash flow stress. This reduces liquidity, weakens cash flow planning, and increases reliance on external funding. In response, many firms delay their own payments, transmitting pressure across supply chains and amplifying second-order risk.
Sector and Size Disparities
Exposure varies sharply by sector. Construction and trade face elevated risk due to heavy reliance on trade credit, long payment cycles, and complex supply chains that constrain liquidity. Manufacturing shows early deterioration, with rising overdue invoices and bad debts linked to demand volatility and supply chain disruption. Services remain comparatively stable but cautious, reflecting sensitivity to broader economic slowdown rather than immediate liquidity shocks.
Company size reinforces the divide. Larger firms sustain stronger payment performance through better financing access and diversified customer bases. Smaller firms face greater exposure to delayed payments and tighten terms to protect liquidity, limiting flexibility and increasing vulnerability to shocks.
Uncertain Outlook
Business sentiment points to continued uncertainty. Ungaro noted: "Companies are almost evenly split between expecting payment conditions to improve or deteriorate in the months ahead, highlighting an uncertain outlook even as underlying risks continue to build."
The regional view reflects patterns observed across Asia's key trade markets, while underlying risk varies significantly at country and sector level. For more information, visit the Atradius knowledge and research page.
