B2B payment practice trends, Australia 2025

B2B paymentpractices trends In this report About the AtradiusPayment Practices The Atradius Payment Practices Barometer is an annualsurvey of business-to-business (B2B) payment practicesin markets across the world. Our survey gives you the opportunity to hear directlyfrom businesses trading on credit with B2B customersabout how they are coping with evolving trends incustomer payment behaviour. Staying informed about Businesses operating in – or planning to enter – themarkets and industries covered by our survey can gainvaluable insights from our reports, which also shed lighton the challenges and risks companies anticipate in the This report presents the survey results forAustralia. The survey was conducted during Q1 2025. The findingsshould therefore be viewed with this in mind. B2B paymentpractices trends Liquidity under pressure ascustomer payment risks increase amid The majority of Australian companies report facingliquidity challenges due to rising B2B late payments anddefaults amid an unpredictable trading environment.Despite this, many businesses across various industriesrelaxed their B2B trade credit policies, offering morecredit and payment flexibility to customers in order to Our survey findings show that more than half of B2Binvoices are now overdue, largely driven by customerfinancial difficulties, especially in the constructionindustry. Bad debts also increased, now affecting anaverage of just over 10% of B2B invoices. This forcedcompanies to unlock liquidity tied up in operations, such Companies facing cash flow issues either delayedpayments to suppliers or tried to reduce Days SalesOutstanding (DSO). However, with DSO closelymatching the extended payment terms, averaging 42days from invoicing, there was limited room to speedup collections. As a result, many businesses in theAustralian agri-food and metals sectors look towards As businesses navigate rising payment risks during thecurrent uncertain economic environment, they facemounting financial pressure from constrained workingcapital and the need to seek external financing. These Key figures and charts Australia Australia % 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 internal invoicing on our end Disputes or issues with invoices Sample: all survey respondents Source: Atradius Payment Practices Barometer Australia – 2025 Australia Australia % of respondents reporting changes in Days SalesOutstanding (DSO)* over the past 12 months What are the main sources of financing that your 65% Bank loans60% Trade credit59% Invoice financing(% of respondents - multiple response) Looking ahead Uncertain market conditions fuelunpredictable payment risks trends The uncertain impact of the US protectionist policieson global trade is expected to pressure economicactivity in Australia, complicating business andfinancial planning. As a result, many companies arehesitant to make firm predictions about future trendsin B2B customer payment behaviour, as shiftingmarket conditions and potential financial instabilitymay significantly increase the risk of late paymentsand defaults. This may explain why most companiesin our survey expect B2B payment patterns to remainalmost unchanged in the year ahead, indicating thatbusinesses already facing payment risks will continueto struggle with cash flow challenges. Liquidity Despite lingering caution around insolvency risk,business confidence remains, with companies acrossindustries still expecting growth and believing theycan preserve profit margins by focusing on costefficiency. Even if the US softens its protectionistpolicies, economic conditions may still be tough. Tomanage customer credit risk, Australian businessesplan to adopt a hybrid approach, with increasedreliance on a combination of internal provisions withexternal credit risk solutions to maintain financial Key industry insights Agri-food Australian agri-food companies face growing liquiditychallenges as they increase credit sales and offer longerpayment terms to stay competitive despite worsening Longer Days Sales Outstanding (DSO) impactsnegatively on cash flow, and businesses turn to invoicefinancing and bank borrowing to bridge working capitalgaps, exposing them to higher costs and interest rate Australia - Agri-food Top 4 challenges companies face when offering credit to Australia - Agri-food Key industry figures Key industry insights Construction The Australian construction industry is navigating acomplex financial landscape that significantly impactsliquidity management. A rise in B2B late payments,suppliers demanding faster payments, stock build-up, Combining strategic credit management, workingcapital optimization, and balancing financing sources Australia - Construction Top 4 challenges companies face when offering credit to Australia - Construction Key industry figur