Poor payment practices from B2B customers have been a persistent issue during the past 12 months for almost half of the Canadian companies surveyed across various industries.
The 2024 Payment Practices Barometer survey for Canada was conducted between the end of Q2 and the beginning of Q3 2024. Its findings should therefore be viewed with this in mind.
Key takeaways from the report for Canada
Financial struggles persist for businesses across Canada
- Almost half of companies in our survey of Canada report no change in the landscape of poor B2B customer payment behaviour during the past year, especially in the energy/fuel sector. In contrast, approximately 25% of businesses note a further deterioration in customer payment practices.
- Overdue invoices are turned into cash on average one month beyond the due date by companies in Canada, with the agri-food and consumer durables sectors experiencing the longest delays. Supply chain disruptions and inefficient payment processes are the main reasons for payment delays.
Widespread concern about rising trend of insolvencies
- There is widespread pessimism among companies in Canada about the outlook for for insolvencies, with 55% of businesses anticipating a worsening level in the year ahead. This is particularly felt in the energy/fuel industry and could lead to severe financial distress for many. Most other companies expect no change.
- The primary concern looking ahead for companies in Canada is the impact of environmental and sustainability regulations on business operations, particularly in the
energy/fuel industry. There is also anxiety about the outlook for the domestic economy despite a recent growth uptick, especially among agri-food businesses.
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 Canada and North America (USMCA), please download the full reports available in the related documents section below.
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