The 2024 Payment Practices Barometer survey for Singapore was conducted during Q3 2024, and findings should therefore be viewed with this in mind.

Key takeaways from the report for Singapore

Steady payment patterns hide credit risk challenges for Singapore companies

• The overall payment landscape is further complicated by more companies experiencing longer payment cycles than shorter ones. These findings indicate a troubling trend in the business environment. It is clear that late payments are increasingly becoming a major concern across different industries in Singapore. They now impact an average 54% of credit sales to B2B customers, putting a strain on cashflow and financial stability for many companies.
   
• To manage cashflow gaps many Singapore businesses look to external financing, including invoice discounting, bank loans, and trading on credit. Days Sales Outstanding (DSO) has remained steady for 60% of companies, which indicates that receivables are not being converted into cash quickly
  enough.

Pessimism about insolvency risk among Singapore companies

• There is a divided mood as well about the trends for insolvency risk in the year ahead. 51% of companies in Singapore, especially in the construction sector, anticipate business insolvencies among their customers to worsen. Other industries such as chemicals, however, are more optimistic and anticipate a positive trend.
   
• Uncertainty about the impact of shifting domestic and global economic conditions is the major concern looking ahead for companies in Singapore. The construction sector has particular anxiety about rising costs, supply chain
  disruptions and market volatility.

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 Singapore, please download the full report available in the related documents section below. The regional report for Asia is also available for download in the section below.

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