Selling more but waiting for payment: When do trade receivables become a liquidity strain? 

For B2B businesses, offering credit terms can help maintain customer relationships and drive revenue growth. However, when payments take longer than expected, businesses must still secure sufficient funds to pay suppliers, cover operating expenses, and meet their financial obligations as they fall due.  

According to the Coface APAC Payment Survey 2026, the average payment term in Asia-Pacific (APAC) was 70.2 days. Notably, the proportion of surveyed businesses reporting that late payments had become more frequent than in the previous 12 months was:  

• 49% in Singapore(Singapore Factsheet - Coface APAC Payment Survey 2026)  

• 35% in China(China Factsheet - Coface APAC Payment Survey 2026)  

• 28% in Japan (Japan Factsheet - Coface APAC Payment Survey 2026)  

These findings highlight an important consideration for cash flow planning: businesses need to account not only for the credit terms they offer but also for the possibility that customers may pay later than expected.  

Customer Assessment Must Take Industry Benchmarks into Account  

In addition to the payment terms covered by Coface’s survey, days sales outstanding (DSO) is an important metric for assessing how quickly a business collects its receivables.  

In Vietnam, data compiled by FiinGroup for 2025 shows significant differences in median DSO across industries, ranging from 47 days in wholesale and retail to 92 days in construction. Therefore, when assessing a customer’s ability to settle receivables, businesses should interpret this metric in the context of the relevant industry rather than relying on a single benchmark for all businesses.  

What should businesses monitor when assessing customers and business partners?  

• Is DSO increasing relative to the industry benchmark?  

• Are trade receivables growing faster than revenue?  

• Is operating cash flow remaining positive?  

• Is short-term debt increasing alongside pressure on collections?  

FiinGate: Corporate Analysis and Industry Benchmarking  

To assess customers and business partners more effectively, businesses need to combine financial information with comparisons against relevant industry benchmarks. FiinGate supports this process through Company Analysis and Industry Benchmarking, helping users to:  

• Assess customers’ financial health: Examine payment capacity, debt utilization, and growth trends to support customer assessment before extending trade credit.  

• Identify areas requiring further review:Track changes over time and compare financial indicators against industry benchmarks to identify signals that warrant closer examination, such as weakening liquidity or rising debt utilization.  

• Inform trade credit policy decisions:Combine analytical insights with actual payment histories to review payment terms, credit limits, and which customers require closer monitoring.  

Rather than focusing solely on collection periods, businesses can take a more systematic approach to assessing customers and business partners, supporting decisions related to commercial relationships and working capital management.  

Coface: Supporting the Assessment of Overseas Business Partners  

For international transactions, obtaining reliable information and assessing the risks associated with overseas business partners are also important considerations when determining trading terms. 

Coface company profiles, financial information, and credit risk assessments of overseas business partners. These insights help businesses gain a better understanding of potential partners and provide additional information to support customer selection and decisions on trade credit terms and payment periods.  

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