Latest news with #baddebts
Independent Singapore
6 days ago
- Business
- Independent Singapore
Trust on hold: Companies slam brakes on trade credit amid soaring bad debts
Photo: Depositphotos/ (for illustration purposes only) SINGAPORE: More Singaporean businesses are facing financial strain as unpaid invoices increase, now averaging 6% across industries. This trend points to worsening financial pressure among corporate clients. According to the recent B2B Payment Practices Trends in Singapore 2025 report by global credit insurer Atradius, featured in the latest SBR report, these unpaid bills, often called 'bad debts,' are steadily impacting profit margins and revealing weaknesses in various sectors. The sectors on construction and agri-food were hit the hardest, with each industry reporting an average of 7% in bad credits. The energy and fuel sector performs slightly better, averaging a significant 5%. In response, companies are being more cautious. About half are reducing the trade credit they offer to corporate clients. Others are tightening payment terms to protect themselves from increasing credit risk. Even those offering more credit are becoming more stringent, with constricted deadlines becoming the norm. At present, more than half, or 54%, of B2B businesses in Singapore are accomplished on credit, with an average payment period of 46 days. Nevertheless, 35% of these accounts end up unsettled, principally because of clients' cash flow problems or unsolved disagreements. The energy and fuel segment is at the forefront in credit-based transactions at 58%, followed closely by the construction sector at 55%. The agri-food industry, while using the least credit, at 47%, has a very high rate of unpaid accounts, 43% of these accounts are unsettled. This compares to 37% in construction and 30% in energy and fuel. Despite the increase in bad debt, most businesses, 70%, expect insolvency rates among clients to stay stable in the near future. Nevertheless, companies are not taking risks. Many are stepping up debt collection efforts and reviewing payment policies to safeguard their cash flow. Around 62% of firms are working to reduce their Days Sales Outstanding (DSO) to improve cash flow. However, slow inventory turnover might limit how much cash can be released. Adding to the burden, 70% of dealings report being overstretched by contractors and providers who demand quicker payments, further constricting the financial congestion across the supply chain. See also Trump's tariff policy does not represent all of America As the burden of attaining financial flexibility surges, the corporate world of Singapore is on its way to framing a more vigilant and meticulous credit-aware future. () => { const trigger = if ('IntersectionObserver' in window && trigger) { const observer = new IntersectionObserver((entries, observer) => { => { if ( { lazyLoader(); // You should define lazyLoader() elsewhere or inline here // Run once } }); }, { rootMargin: '800px', threshold: 0.1 }); } else { // Fallback setTimeout(lazyLoader, 3000); } });
Associated Press
04-08-2025
- Business
- Associated Press
Atradius survey reveals cautious optimism among UAE businesses despite rising bad debts and increased geopolitical uncertainty
DUBAI, UAE - Media OutReach Newswire - 4 August 2025 - The latest Atradius Payment Practices Barometer survey for the United Arab Emirates (UAE) reveals a divided B2B payment landscape, with companies facing increasing financial pressure as bad debts grow to an average rate of 8% of overdue invoices amid a tightening in liquidity conditions, and points to a rise in debt collection challenges across the market. The comprehensive survey, conducted during the second half of Q2 2025, shows that while 43% of businesses report no recent change in how B2B customers pay, the remaining companies are almost evenly split between those experiencing quicker payments and those facing delays. Half of all B2B sales in the UAE are made on credit, with payment terms averaging 47 days. Worryingly, 58% of these credit-based sales are paid late, primarily due to administrative bottlenecks or financial distress within customer organisations. This trend is directly squeezing working capital and forcing companies to re-evaluate their risk management strategies. 'The findings highlight a dual reality in the UAE market,' said Roeland Punt, Regional Director for Atradius in the Middle East. 'While some businesses continue to experience stable payment behaviour, others are facing growing financial strain. The increase in bad debts and overdue invoices is a clear signal that companies need to reinforce their credit risk frameworks. Many are already responding by diversifying their risk management strategies, combining internal controls with external tools such as trade credit insurance. This adaptability is a positive sign amid ongoing economic uncertainty. Diversity in risk management strategies Companies are adopting diverse approaches to manage B2B customer payment risks, with 42% favouring a combination of internal provisioning and outsourced credit insurance with the rest choosing a single method. Inventory management practices are also found to be mixed with some companies experiencing stock build-ups that could impact working capital and liquidity. Trade credit remains the primary source of financing at 58%, followed by bank loans at 52% and internal funds at 49%. The respondents' financial challenges are further reflected in supplier payment trends, where some companies maintain regular payment schedules while others delay payments to suppliers to ease their own liquidity constraints. Industry-specific insights Pharmaceuticals: Around 50% of B2B sales are on credit, with average payment terms of nearly 50 days. Overdue payments affect 60% of invoices, and 61% of companies expect an increase in customer insolvencies. Along with late payments and bad debt, companies in the sector also listed balancing customer terms with financial health protection as one of the main challenges in offering credit to customers. Steel and Metals: Credit-based sales account for 60% of transactions, with 55% of invoices overdue. Despite this, 69% of companies do not anticipate a rise in insolvencies. FMCG: The industry demonstrates a more careful approach, with just over 50% of B2B sales conducted on credit and shorter payment terms of around 40 days. However, 56% of companies anticipate rising customer insolvencies, reflecting heightened concerns regarding late payments in this sector. Cautious optimism despite challenges Looking ahead, companies remain divided on insolvency projections, with 50% expecting customer insolvencies to increase while the rest foresee no change. Businesses also maintain strong sales and profitability outlooks, though concerns persist around geopolitical developments and their impact on trade patterns and supply chains, ongoing regulatory changes and the growing focus on environmental considerations. Overall, the survey's findings underscore the importance of being nimble and adaptable in the face of challenges and having a well-honed credit risk management strategy, as UAE businesses navigate an increasingly complex economic environment in one of the world's leading regional trade and business hubs. Download the full report here. Hashtag: #PaymentPracticesBarometer #B2BPayments #CreditRisk The issuer is solely responsible for the content of this announcement. Atradius Atradius is a global provider of credit insurance, bond and surety, collections and information services, with a strategic presence in over 50 countries. The products offered by Atradius protect companies around the world against the default risks associated with selling goods and services on credit. Atradius is a member of GCO, one of the leading companies in the Spanish insurance sector and one of the largest credit insurers in the world. You can find more information online at
Malay Mail
04-08-2025
- Business
- Malay Mail
Atradius survey reveals cautious optimism among UAE businesses despite rising bad debts and increased geopolitical uncertainty
DUBAI, UAE - Media OutReach Newswire - 4 August 2025 - The latest Atradius Payment Practices Barometer survey for the United Arab Emirates (UAE) reveals a divided B2B payment landscape, with companies facing increasing financial pressure as bad debts grow to an average rate of 8% of overdue invoices amid a tightening in liquidity conditions, and points to a rise in debt collection challenges across the comprehensive survey, conducted during the second half of Q2 2025, shows that while 43% of businesses report no recent change in how B2B customers pay, the remaining companies are almost evenly split between those experiencing quicker payments and those facing delays. Half of all B2B sales in the UAE are made on credit, with payment terms averaging 47 days. Worryingly, 58% of these credit-based sales are paid late, primarily due to administrative bottlenecks or financial distress within customer organisations. This trend is directly squeezing working capital and forcing companies to re-evaluate their risk management strategies."The findings highlight a dual reality in the UAE market," said Roeland Punt, Regional Director for Atradius in the Middle East. "While some businesses continue to experience stable payment behaviour, others are facing growing financial strain. The increase in bad debts and overdue invoices is a clear signal that companies need to reinforce their credit risk frameworks. Many are already responding by diversifying their risk management strategies, combining internal controls with external tools such as trade credit insurance. This adaptability is a positive sign amid ongoing economic are adopting diverse approaches to manage B2B customer payment risks, with 42% favouring a combination of internal provisioning and outsourced credit insurance with the rest choosing a single method. Inventory management practices are also found to be mixed with some companies experiencing stock build-ups that could impact working capital and liquidity. Trade credit remains the primary source of financing at 58%, followed by bank loans at 52% and internal funds at 49%.The respondents' financial challenges are further reflected in supplier payment trends, where some companies maintain regular payment schedules while others delay payments to suppliers to ease their own liquidity Around 50% of B2B sales are on credit, with average payment terms of nearly 50 days. Overdue payments affect 60% of invoices, and 61% of companies expect an increase in customer insolvencies. Along with late payments and bad debt, companies in the sector also listed balancing customer terms with financial health protection as one of the main challenges in offering credit to and Metals: Credit-based sales account for 60% of transactions, with 55% of invoices overdue. Despite this, 69% of companies do not anticipate a rise in The industry demonstrates a more careful approach, with just over 50% of B2B sales conducted on credit and shorter payment terms of around 40 days. However, 56% of companies anticipate rising customer insolvencies, reflecting heightened concerns regarding late payments in this ahead, companies remain divided on insolvency projections, with 50% expecting customer insolvencies to increase while the rest foresee no change. Businesses also maintain strong sales and profitability outlooks, though concerns persist around geopolitical developments and their impact on trade patterns and supply chains, ongoing regulatory changes and the growing focus on environmental the survey's findings underscore the importance of being nimble and adaptable in the face of challenges and having a well-honed credit risk management strategy, as UAE businesses navigate an increasingly complex economic environment in one of the world's leading regional trade and business the full report here Hashtag: #PaymentPracticesBarometer #B2BPayments #CreditRisk The issuer is solely responsible for the content of this announcement. Atradius Atradius is a global provider of credit insurance, bond and surety, collections and information services, with a strategic presence in over 50 countries. The products offered by Atradius protect companies around the world against the default risks associated with selling goods and services on credit. Atradius is a member of GCO, one of the leading companies in the Spanish insurance sector and one of the largest credit insurers in the world. You can find more information online at
Reuters
10-07-2025
- Business
- Reuters
Russian central bank sees no risk of looming banking crisis
ST PETERSBURG, Russia, July 3 (Reuters) - The Russian central bank sees no risk of a looming crisis in the country's banking system as rising bad debts are well covered by banks' $100 billion in capital, Governor Elvira Nabiullina said on Thursday. The share of bad and restructured loans in Russian banks' portfolios has been rising, as more companies struggle to refinance their debts at interest rates that have jumped above 30% as a result of the central bank's tight monetary policy. Some economists and bankers have recently raised concerns about the health of the banking system in light of the growing share of bad debts. The last time the central bank had to bail out a major Russian bank was in 2017. "Having full information about the banks, as the authority overseeing them, I can state with complete confidence that these concerns are absolutely unfounded," Nabiullina told reporters. "The banking system is well capitalized, despite the fact that this capital is unevenly distributed across the banking sector. The capital buffer is substantial at 8 trillion roubles ($101.18 billion)," Nabiullina said. Russia's second-largest bank, VTB, reported that the share of non-performing loans (NPLs) in its portfolio that have not been serviced for over 90 days reached 5% in May. During the financial turbulence of 2014-16, VTB's share of such loans was as high as 10%. VTB's First Deputy CEO, Dmitry Pyanov, said the share of NPLs could rise to between 6% and 7% within the next few months, but stressed that this was still far from peak levels. VTB estimated the share of restructured corporate loans at 3%. Nabiullina said the continued strong profits reported by the banking sector this year indicate that banks have not been forced to increase provisions to cover the rising share of bad loans. "Banks are not significantly increasing provisions. If the share of bad loans were rising, the share of provisions would also increase, which would lead to a decrease in profits. But banks' profits are comparable to last year's," she said. The central bank introduced an additional requirement on provisions, called a "countercyclical buffer", at 0.25% of total assets in February and raised it to 0.5% from July 1. It is considering a further increase to 1%. ($1 = 79.0705 roubles)
RNZ News
15-05-2025
- Business
- RNZ News
Manawa Energy's profit tumbles after 'extremely challenging' year
Manawa Energy's profit tumbles. Photo: 123RF Manawa Energy's bottom-line profit has crashed after a challenging year shaped by weak generation, high wholesale electricity prices and after an independent power retailer defaulted on payments. Key numbers for the 12 months ended March compared with a year ago: The electricity generator, which has just received regulatory approval to be taken over by Contact Energy , saw its total generation volumes fall 15 percent due to low hydro inflows and wind generation. Manawa said it also faced "extremely challenging market conditions". "Extreme fuel shortages across the winter period of 2024 drove wholesale electricity spot prices to record levels," the company told the NZX. "Manawa was, at times, exposed to these spot prices given the relatively fixed nature of its contractual sales volumes." The shortages were driven by low national hydro inflows, below-average wind generation, and gas shortages. But it "quickly reversed" as conditions returned to normal and as gas availability "dramatically increased". "The sudden and rapid increase in available fuel saw spot electricity prices fall dramatically across most of the period from September 2024 through to the end of the calendar year," Manawa said. The company also wrote off $6.8 million in bad debts after independent retailer Prime Energy defaulted on payments. "The unprecedented conditions of winter 2024 resulted in a further adverse impact on the business with an independent electricity retailer, for whom Manawa acted as a wholesale intermediary, defaulting on its payment obligations," it said. Manawa said it recovered a significant portion of the original debt. The company did not provide a full-year outlook and did not declare a final dividend amid the imminent takeover by Contact Energy. Manawa expected the deal, which would be carried out by way of a scheme of arrangement, to be implemented in July.
