A growing wave of concern is rippling through Asian supply chains, as companies across the region report a surge in ultra-long payment delays, indicating that liquidity pressures are rising sharply amid macroeconomic headwinds.

According to Coface’s Asia Payment Survey 2025, released this month, the proportion of firms experiencing ultra-long payment delays ( ULPDs ), defined as overdue payments exceeding 180 days and accounting for more than 2% of annual turnover, jumped to 40% in 2024, up from just 23% the previous year.

This is the highest level recorded since Coface began tracking the data, and a red flag considering that 80% of such delays are historically never paid.

This deterioration is especially pronounced in China, India, Thailand, and Malaysia. Sector-wise, the most affected industries were wood ( +37% ), agro-food ( +20% ), and automotive ( +18% ). These sectors are often deeply embedded in complex supply chains, making them particularly vulnerable to payment risk contagion.

Tightening credit conditions

The survey, which covered over 2,400 companies in nine Asia-Pacific markets and 13 sectors, also reveals broader shifts in payment behaviour. While average payment terms increased marginally from 64 to 65 days, the regional average remains below the pre-2023 five-year mean of 69 days.

Two-thirds of businesses now anticipate shorter payment terms going forward, a clear sign of tightening credit conditions and an increased focus on cash preservation.

“Asia-Pacific growth slowed in 2024 as global demand softened and costs stayed elevated,” says Bernard Aw, Coface’s chief economist for Asia-Pacific. “The record surge in ultra-long payment delays signals that companies expect mounting financial strain in the months ahead.”

In the survey, 57% of respondents expect further deterioration in payment behaviour within six months, while 33% foresee a worsening business environment in 2025, more than double last year’s figure.

With geopolitical uncertainty rising, tariff risks growing, and competition intensifying, Asia’s corporate credit landscape is entering a period of heightened volatility.

The message from the data is clear: companies should brace for tougher terms and increased counterparty risk, and disciplined credit management is a must.