B2B payment practices trends, United States 2024

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report highlights a mixed landscape in B2B payment practices in the United States, with 46% of companies reporting no change in customer payment behavior, while one-third, particularly in the steel/metals sector, note faster invoice payments compared to the previous year [7][16] - Late payments remain a significant issue, with half of all B2B invoices currently overdue, impacting working capital management, and bad debts averaging 8% of all B2B credit sales [7][16] - Companies are increasingly adopting strategic risk management frameworks, with 15% more businesses leveraging credit insurance compared to the previous year [7][16] Summary by Sections B2B Payment Risk Management - Companies in the US report varied B2B customer payment behavior, with 46% indicating no change and one-third noting faster payments, particularly in the steel/metals sector [7] - Late payments from B2B credit transactions are a major issue, with half of all invoices overdue and bad debts averaging 8% [7] - The main reasons for late payments include administrative inefficiencies and invoice disputes, with overdue invoices typically turned into cash 20 days past due [7] Looking Ahead - There is a mixed outlook for US businesses, with 50% anticipating an increase in insolvencies, particularly in the steel/metals sector, while the chemicals sector is more optimistic [16][20] - 53% of companies expect an improvement in B2B customer payment behavior, especially in the steel/metals and electronics/ICT sectors [17][20] - Concerns about economic conditions, cybersecurity threats, and market saturation are prevalent among businesses, with 40% citing economic conditions as a top concern [20][29] Key Figures and Trends - 67% of companies used invoice financing, 65% utilized trade credit, and 52% relied on bank loans over the past 12 months [9] - 40% of businesses reacted to late payments by delaying payments to their suppliers, while 55% focused on maintaining stable Days-Sales-Outstanding (DSO) [7][16] - 69% of companies expect a surge in demand for their products and services in the coming months, particularly in the steel/metals and electronics/ICT sectors [20]