B2B payment practices trends in North America 2025

How are North American companies managing trade credit and payment risks in a volatile economy?

The 2025 Atradius Payment Practices Barometer in North America explores how businesses in Canada, Mexico, and the US are adapting their B2B credit strategies amid economic uncertainty. It offers insights into shifting customer payment behaviours, rising financial risks, and how companies are protecting cash flow and maintaining resilience. 

Canada

Receivables insurance popular amid more lenient trade credit policies

The payment habits of B2B customers remain largely unchanged for 42% of companies across Canada. Despite this, overdue B2B invoices slightly declined to 44% of B2B credit sales, suggesting early signs of improvement compared to the same period last year. Delays are largely attributed to inefficiencies in customer payment processes and temporary liquidity bottlenecks. Bad debts affect around 6% of long-outstanding invoices.

Looking ahead: Uncertain mood highlighted by sharp division on insolvency risk outlook

50% of companies tell us they anticipate a deteriorating insolvency landscape in the months ahead, but the rest say they foresee no major shift. There is a cautious mood about the outlook for working capital management, with most firms expecting no significant change to DSO, inventory turnover or DPO. This points to limited opportunities for unlocking liquidity from either receivables or stock.

Key industry insights

Transport

64% of B2B sales in the sector are now transacted on credit, highlighting increased reliance on trade credit to maintain competitiveness. Payment terms remain stable at around 43 days from invoicing. An average 38% average of all B2B sales on credit are affected by overdue invoices, with 4% ultimately written off as bad debts. DSO stability points to predictable cash flow, yet limited liquidity relief is seen from inventory as stock levels remain static or increase. Risk mitigation strategies favour receivables insurance, often complemented by internal provisioning. 

Mexico

Strong reliance on B2B credit sales as customer payment habits improve

In recent months, 45% of companies reporting more timely payments. Nevertheless, overdue invoices still affect 41% of credit-based B2B sales, largely driven by customer liquidity constraints. While bad debts remain relatively low, affecting just 4% of long-overdue invoices, they still pose a material risk to cash flow.

Looking ahead: Optimism on sales and profits tempered by concern over volatile economy

Two-thirds of Mexican companies are confident that insolvency risks will not worsen in the coming months, reflecting an overall positive outlook for the corporate sector. This optimism is underpinned by expectations of improved B2B customer payment habits, which in turn support faster collections and more efficient stock turnover. Such dynamics offer greater liquidity flexibility to firms, enabling them to meet supplier demands for quicker invoice settlements.

Key industry insights

Pharma

65% of B2B sales are made on credit in the pharma sector amid the shift to more open trade credit policies, and payment terms average 45 days. Overdue invoices account for 42% of B2B sales, while bad debts affect 5% of long-outstanding invoices. DSO remains steady, indicating improved or stable cash inflows, but consistent inventory turnover restricts liquidity release from stock. Supplier payments are largely unchanged, while supplier credit is the dominant trade finance source. Three in five firms mitigate customer payment risk through a mix of receivables insurance and internal provisioning. 

US

Uneven B2B payment trends disrupt working capital across US industries

A fragmented picture of B2B payment behaviour is evident in our survey of companies across the US. While 35% of firms report a worsening trend, an equal share sees no change and the remainder an improvement. 43% of credit-based B2B sales are overdue, primarily due to customer cash flow pressures. Bad debts now affect 5% of long overdue invoices, underscoring the trade-off faced when offering extended credit to stay competitive.

Looking ahead: Concern over profits and supply chain disruptions amid unpredictable economy

Businesses across the US are divided over the outlook for B2B customer insolvency risk, reflecting wider uncertainty around expectations for working capital management. Most companies anticipate no substantial change in debt collection patterns, limiting opportunities to unlock liquidity from receivables, but there is optimism about potential improvement in inventory turnover. Changes in supplier payment timings are expected, particularly from financially strained suppliers seeking faster invoice settlements.

Key industry insights

Agri-food

Nearly half of B2B sales in the agri-food sector are made on credit due to more relaxed trade credit policies. Payment terms are largely stable or longer, which supports customer relationships. 40% of B2B invoices are overdue and 5% are written off as bad debts, indicating rising credit risk. Bank loans and invoice financing remain the primary funding sources. 53% of firms expect insolvency risk to increase, but others foresee stability. Amid input cost volatility and tariff uncertainty, companies are strengthening payment risk management to protect margins. 

Interested in finding out more?

For a complete overview of the 2025 survey results for North America, download the full report available in the related documents section below.

To explore how these insights can strengthen your own credit risk strategy, get in touch with us and see how we can help you stay ahead.