110 views

B2B bad debt level increases to 9%

Agri-food had the highest average of write-offs across industries in Singapore.

The B2B bad debt level in Singapore has increased to 9% in 2022 from 6% in 2021, the Atradius Payment Practices Barometer Asia report showed. 

Based on the report’s June 2022 edition, the agri-food sector had the highest average bad debts written off as uncollectible at 11%, more than double last year’s figure of 8%.

Businesses in Singapore said the main reason why they experience a B2B payment default is because of administrative inefficiencies in the customers’ payment process (53%).

“This was reported especially by construction companies, who said they offered
discounts to entice B2B customers for early payment of invoices,” the report stated.

Other issues faced by businesses which led to payment default were liquidity problems (43%), customer disputes (41%), deliberate late payment (23%), and customer bankruptcy (10%).

Most (71%) businesses in Singapore would give their customers to pay back within 30 days, whilst others will give at least 60 days (21%).

Despite the long period of payment terms, businesses said their customers still pay dues beyond the deadline by at least 20 days.

Whilst a growing bad debt level, 64% said they are still planning to increase their trading on credit with B2B customers.

Most of those surveyed trade (28%) on credit to encourage repeat business with established customers, whilst otters wanted to allow B2B customers more time to pay (27%), stay competitive (24%), and win new customers (21%).

READ MORE: Credit financed 46.4% of Singapore's business-to-business sales

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!