A recent survey by Atradius highlights the impact Covid-19 is having on payment experiences in the US, Mexico and Canada. The cash flow of companies in these countries is coming under severe pressure due to the corona crisis. Every year, companies in the US, Mexico and Canada circulate what is known as the USMCA Payment Barometer, a survey that charts payment behaviour among business-to-business (B2B) companies. The survey reveals a violent increase from last year.
Currently, 43 per cent of invoices are paid late. A big difference from last year, where 25 per cent of invoices were still open after due date. In addition, the number of invoices outstanding for more than 90 days doubled this year.
Companies in all three countries reported an increase in overdue payments. In the US, this is about 72 per cent year-on-year , according to companies. Payment delays vary by sector.
Andreas Tesch, Chief Market Officer of Atradius: “Annual surveys of business behaviour and sentiment can provide excellent insight into a region’s economic resilience. Atradius’ 2020 payment barometer for the US, Mexico and Canada is a special story of two halves. On one half is the dramatic increase in arrears and the unmistakable indications that the region has entered a recession. On the other is optimism for a better future, despite the current dismal figures. Of course, both depend on the development of the Covid-19 crisis and the region’s effectiveness in reversing its negative effects.”
As Andreas Tesch points out , 52% of companies remain optimistic despite severe weather . They expect sales to pick up in the coming months and assume assume that banks will continue to provide credit to support businesses. In addition, half of the respondents indicated that they plan to improve their credit management processes. Especially when it comes to sending payment reminders and using collection agencies.
The Atradius payment barometer was conducted in the United States, Canada and Mexico. Downloadthe entire report ? Then visit atradius.co.uk.
Bron: Atradius website
