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Silvia Ungaro
Senior Advisor
Ongoing B2B payment struggles highlight strategic credit management gaps
Although 55% of companies in Mexico report that payment practices by B2B customers are consistent with the previous year, this masks ongoing difficulties for the highly significant automotive industry. It is a cornerstone of Mexico’s industrial landscape and continues to face
substantial challenges due to delayed payments and unreliable customer behaviour. These include unpredictable cashflow, problems in financial planning, and increased risk of liquidity shortages. In contrast, 27% of businesses, mainly in the chemicals sector, say there is improved B2B customer behaviour compared to last year. A minority of companies, primarily in the agri-food industry, report slower invoice payments.
Late payments impact 48% of Mexican B2B invoices, while bad debts average 6% of B2B credit sales, up from 4% last year, with the automotive sector being the most affected by poor B2B payment practices.
Overall, our survey finds that almost half of all invoices issued by Mexican companies in B2B trade are currently overdue, a steady percentage compared to a year earlier. An average 6% of all B2B invoices end up as bad debts, leading to further financial strain on businesses, with the automotive sector hardest hit. The main reasons cited for late payments are liquidity issues among B2B credit customers, along with invoice disputes and administrative inefficiencies within customer organisations. Businesses in Mexico tell us that invoices are paid, on average, 38 days beyond the due date, with the agri-food industry experiencing the longest delays
