APAC companies brace for more “ultra long payment delays” in 2025

Over 57% of 2,400 companies surveyed expect a deterioration in late payments.

Companies in the Asia Pacific have sounded the alarm for “ultra long payment delays” (ULPDs), which rose to a new high of 40%, according to data from Coface.

ULPDs refer to payments delayed by over 180 days and exceeding 2% of a company’s annual revenue. About 80% of these delays will not be paid, according to Coface, a receivable management services company.

Delays were highest in China, India, Thailand, and Malaysia.

The trend is expected to continue over the next six months, with 57% of the 2,400 companies surveyed by Coface bracing for a deterioration in late payments.

“We expect the economic outlook for 2025 to continue to weaken. Higher tariffs and
shifting trade policies have increased uncertainty over global economic policy, weighing heavily on business spending and consumer confidence,” Coface said in its report.

In addition, companies also cite over-competitive pressures, slowing demand and higher labour costs as additional risks, it added.

About 1 in 3 (33%) of surveyed companies also expect business activity to deteriorate in 2025 compared to 2024. Taiwan and Singapore were the most pessimistic, with over 4 in 10 respondents saying such.

“Asia-Pacific growth slowed in 2024 as demand weakened. The rebound in trade
last year has marginally offset the decline in 2023,” said Bernard Aw, chief economist for APAC, Coface.

“In the face of continued and heightened geo-political uncertainty and increasing costs, many businesses are anticipated to strengthen their credit management measures and prioritise cost management,” Aw said.