#United States #New York #North America #Atradius #Payment Risk

Navigating Payment Risks in North America

A recent survey conducted by Atradius sheds light on the evolving payment risk landscape faced by businesses in North America. Despite a perception of stability, the underlying financial pressures are revealing a more complex scenario for the economy. Here’s a deep dive into what the data indicates about current trends and future concerns.

The Current Payment Behavior

The 2026 Atradius Payment Practices Barometer surveyed over 600 businesses across the United States, Canada, and Mexico. Interestingly, while most respondents reported minimal change in customer payment behaviors, there are significant underlying liquidity pressures affecting the market. About 43% of sales in B2B transactions are still carried out on credit terms, signifying a high reliance on supplier financing within the North American business community.

However, the phenomenon of late payments continues to plague the industry, affecting approximately 70% of companies surveyed. On average, overdue invoices constitute about 23% of B2B receivables. Though a slight silver lining exists in that most overdue payments are settled within a month, the reality of overdue payments represents a significant challenge for businesses aiming to steer clear of prolonged financial strain.

Signs of Financial Strain

Diving deeper into the data reveals an alarming trend: one in three businesses indicates reduced cash availability. This situation is being exacerbated by liquidity constraints among customers, identified as the primary cause of delayed payments. Silvia Ungaro, Senior Advisor on B2B Payment Trends at Atradius, states, "The striking finding is that payment performance and financial confidence are moving in different directions." Although companies manage to get paid, they are not emerging from financial pressure but are instead navigating through it.

Economic Outlook and Its Implications

Looking ahead, North American businesses anticipate that external macroeconomic conditions will pose the biggest threat to their payment performance over the next year. With economic slowdown viewed as the principal concern, additional elements such as inflation and escalating costs are prevalent worries. The lingering impact of high interest rates continues to hinder accessibility to finance and complicate working capital management, emphasizing the need for cautious operational strategies.

Gordon Cessford, President and Regional Director for Atradius North America, highlights the importance of maintaining a disciplined approach. He conveys that although inflation has shown signs of moderation after a notable peak in mid-2026, businesses are still operating under higher costs than previously expected. Coupled with elevated borrowing costs and ongoing geopolitical uncertainties, companies face greater challenges that necessitate robust monitoring of economic developments.

Conclusion

In conclusion, the survey highlights a paradoxical reality where payment performance remains stable, yet a multitude of factors contribute to rising insolvency fears. As North American businesses maneuver through this intricate landscape, prioritizing informed decision-making and strong management strategies is more crucial than ever. Understanding the potential risks while fostering a resilient framework will aid in navigating the uncertain waters of the economic climate effectively.

Businesses must remain vigilant and adaptable to these dynamics. Continuous evaluation of the customer payment landscape and prudent management of credit will be essential for survival and growth in today's complicated environment.