Hong Kong B2B Payment Practices Trends 2025

B2B paymentpractices trends In this report About the Atradius The Atradius Payment Practices Barometer is an annual survey ofbusiness-to-business (B2B) payment practices in markets across theworld. Our survey gives you the opportunity to hear directly from businessestrading on credit with B2B customers about how they are coping withevolving trends in customer payment behaviour. Staying informedabout these trends is vital because it helps to identify emerging shifts in Businesses operating in – or planning to enter – the markets andindustries covered by our survey can gain valuable insights from ourreports, which also shed light on the challenges and risks companies This report presents the survey results forHong Kong. The survey was conducted during the second half of Q2 2025.Findings should therefore be viewed with this in mind. B2B paymentpractices trends Surge in bad debts creates significant A negative trend in B2B payment behaviour is affecting liquidity andputting increased financial pressure on companies in Hong Kong. Oursurvey reveals that while 45% of businesses report no significantchanges in how promptly customers pay, a larger share of the restreport a slowdown in customer payments rather than improvement. Despite these concerns, most companies are either maintaining orrelaxing their trade credit policies to support customer relationshipsand sales volumes, even at the cost of increased financial exposure.Nearly 60% of B2B sales are now transacted on credit, with average Inventory movement shows a comparable trend, with severalbusinesses maintaining stable turnover, while others are experiencingstockpiling that restricts liquidity. The trend for Days PayablesOutstanding (DPO) shows many companies slowing down paymentsto suppliers to safeguard liquidity, though risking strain on supplier Risk mitigation strategies are split, with 44% of businesses opting fora combined approach of internal provisioning and outsourced creditinsurance, while one-third rely solely on internal reserves, tying upmuch-needed funds. Overall, our survey reveals a vulnerable customer Key figures and charts Hong Kong Hong Kong % of the total value of B2B invoices paid on time,overdue and bad debts What are the top 4 reasons your B2B customers payinvoices late? (% of respondents - multiple response) Delays in the customer payment process Hong Kong Hong Kong % of respondents reporting changes in Days SalesOutstanding (DSO)* over the past 12 months What are the main sources of financing that yourcompany used during the past 12 months? 61% Invoice financing59% Bank loans52% Trade credit(% of respondents - multiple response) (% of respondents) Looking ahead Widespread concern about rising insolvencies 57% of companies tell us they anticipate a rise in B2B customerinsolvencies during the months ahead, a significant increase fromthe same period last year. This shift highlights deepening anxietyabout the territory’s economic prospects, particularly given Hong These geopolitical and economic concerns impact on workingcapital management, with 44% of companies in Hong Kongexpecting Days Sales Outstanding (DSO) to worsen, causing tighteroperational cash flow. A similar percentage anticipate inventorybuild-up in the coming months, further tying up liquidity and Tepid internal demand and cautious consumer sentiment in Chinaweigh heavily on Hong Kong’s sales outlook, with profitabilityforecasts equally downbeat. To shield themselves from risingcustomer payment risks, many companies say they will favour Looking ahead to the second half of the year and beyond,companies across all sectors in Hong Kong widely recognise theimportance of staying agile and responsive. Increasing regulatorydemands and environmental pressures are expected to shape ATRADIUS PAYMENT PRACTICES BAROMETER – SURVEY RESULTS FOR HONG KONG – 20256 Key industry insights Consumer durables 44% of B2B transactions in the consumer durables sector areconducted on credit, reflecting mixed trade credit policies. Somecompanies have become more flexible with their credit terms, whileothers remain consistent or selective. This divergence is also visible inpayment terms, which now average around 60 days from invoicing.Currently, 38% of B2B invoices are overdue, a figure that has improved DSO has shown considerable volatility, prompting companies tosharpen their focus on collection efficiency to avoid long-standingreceivables turning into losses. Inventory build-ups are also prevalent,tying up liquidity, while many companies report slowing their ownsupplier payments to preserve cash. To bridge funding gapsbusinesses turn primarily to bank credit and invoice financing. Most Hong Kong - Consumer durables Top 5 challenges companies face when offering credit to B2B customers Assessing customer creditworthiness Cash flow disruptions Handling economic shifts impacting customer payment Hong Kong - Consumer durables Key industry figures Key indust