The Growing Impact of Unpaid B2B Transactions on Japanese Companies in 2025

In a recent survey conducted by Net Protections, Inc., concerning unpaid and collection practices in business-to-business (B2B) transactions, distressing trends have emerged that underscore pressing financial challenges faced by Japanese companies. This survey comes as the nation braces for a significant increase in corporate bankruptcies, projected to hit over 10,261 in 2025, according to Teikoku Databank. The survey aims to uncover the underlying credit risks associated with such an economic environment, which has become increasingly complex due to factors like rising costs, labor shortages, and inflation.

Background of the Survey

The year 2025 is expected to reveal the harsh realities of the business landscape in Japan, with corporate bankruptcies expected to exceed 10,000 for the first time since 2013. Interestingly, while the overall total of liabilities of collapsed companies has diminished by approximately 30% from the previous year, the rate of bankruptcies among small and medium-sized enterprises (SMEs) continues to rise, revealing a troubling trend towards the