B2B payment practices trends, Canada 2024

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report highlights ongoing financial struggles for businesses in Canada, particularly due to poor B2B payment practices, with significant concerns about rising insolvencies in the coming year [3][14] Summary by Sections B2B Payment Risk Management - Almost half of the surveyed companies report no change in the landscape of poor B2B customer payment behavior, with 25% noting a further deterioration [7] - An average of 46% of B2B invoices are overdue, with bad debts averaging 6% of all B2B invoices, particularly affecting the energy/fuel sector [7] - Companies are experiencing delays in turning overdue invoices into cash, averaging one month beyond the due date, with agri-food and consumer durables sectors facing the longest delays [7] Key Figures and Charts - 50% of companies rely on trade credit, 48% on invoice financing, and 47% on bank loans to meet short-term financial needs [13] - 42% of B2B sales are currently transacted on credit, an increase from the previous year, with 52% maintaining unchanged payment terms [7] Looking Ahead - 55% of businesses anticipate worsening insolvency levels, particularly in the energy/fuel sector, while 30% expect improvements in debt collection efficiency [14] - 65% of companies expect a surge in demand for products and services, especially in the consumer durables sector, with 46% anticipating improved profitability [14] - The primary concern for businesses is the impact of environmental and sustainability regulations, particularly in the energy/fuel industry [14]