The 2024 Payment Practices Barometer survey for Taiwan was conducted during Q3 2024, and findings should therefore be viewed with this in mind.

Key takeaways from the report for Taiwan  

Taiwan companies shift to more effective credit management strategies

• Late payments continue to be a significant issue for Taiwanese companies. Currently, an average of 56% of B2B invoices are overdue, a particular problem in the electronics/ICT sector. In contrast, there is a favourable trend in bad debts, decreasing to an average 2% of all B2B invoices.
   
• Three in five Taiwan companies tell us they are revising their credit risk management, shifting from in-house methods to a more strategic approach emphasising the role of credit insurance. This is especially seen in the electronics/ICT and automotive industries. Letters of credit are also popular for individual transactions in international trade.

Half of Taiwan companies fear a surge in insolvencies

• Half of the businesses surveyed in Taiwan, primarily automotive companies, have a negative outlook on the insolvency risk in the market for the upcoming year. 46% of companies expect the rate of insolvencies to remain stable during the next 12 months.
   
• The major concern looking ahead for businesses in Taiwan surrounds the issue of market saturation, which poses significant challenges to growth, and is most acutely felt by automotive companies. The condition of the domestic economy is another widespread worry, and particularly so in the chemicals sector.

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 Taiwan, please download the full report available in the related documents section below. The regional report for Asia is also available for download in the section below.

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