Mexico’s industrial landscape and continues to face substantial challenges due to delayed payments and unreliable customer behaviour.
The 2024 Payment Practices Barometer survey for Mexico was conducted between the end of Q2 and the beginning of Q3 2024. Its findings should therefore be viewed with this in mind.
Key takeaways from the report for Mexico
Ongoing B2B payment struggles highlight strategic credit management gaps
- Late payments currently affect 48% of all B2B invoices issued by Mexican businesses, while bad debts stand at an average 6% of all B2B credit sales, up from 4% last year. The automotive sector, a vital industry in Mexico, is the hardest hit by poor payment practices of B2B customers.
- Liquidity issues among B2B customers is the main reason cited for late payments by companies in Mexico, along with invoice disputes. Overdue invoices are turned into cash on average 38 days beyond the due date. Agrifood companies experience the longest delays.
Business sentiment wavers amid US economic slowdown worries
- Insolvency levels are expected to remain stable by 57% of Mexican companies during the year ahead, especially in the chemicals sector. In contrast, the automotive industry is more
pessimistic, anticipating an increase in insolvencies.
- The main future concern for Mexican businesses is the uncertain outlook for the domestic economy, which is clouded by the slowdown in its primary export market of the US. This is exacerbated by pessimism about the medium-term prospects for the global economy and rising consumer caution.
The Atradius Payment Practices Barometer is an annual survey of business-to-business (B2B) payment practices in markets across the world. Its findings can give valuable insights into the current dynamics of corporate payment behaviour in B2B trade. It can also help companies doing business, or planning to do so, in the markets polled to identify emerging future trends in the payment practices of B2B customers.
Interested in finding out more?
For a complete overview of the 2024 survey results for Mexico and North America (USMCA), please download the full reports available in the related documents section below.
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