B2B sales that businesses in Canada made on credit saw a significant drop in the face of heightened credit risk in B2B trade.
The 2023 Payment Practices Barometer survey for Canada was conducted between the end of Q2 and the beginning of Q3 2023. Its findings should therefore be viewed with this in mind.
Key takeaways from the report for Canada
Credit sales plummeted amid higher credit risk in B2B trade
- Sales transacted on credit showed a sharp downturn among companies polled in Canada during the past 12 months, particularly in the chemicals sector. These now average just 32% of all B2B sales, with the majority of sales made on a cash basis, mitigating the risk of delay or non-payment from customers.
- Canadian businesses maintained relatively stable payment terms during the past year. They stand at an average 38 days from invoicing, two days longer than a year ago. The construction sector bucked the trend with far more lenient payment terms.
Businesses diverge on outlook as many challenges lie ahead
- Companies across all industries and sectors polled in Canada said the volatility of commodity prices is their primary concern for the year ahead. Strong anxiety was expressed that wildly fluctuating prices could have a significant negative effect.
- Uncertainty about interest rates hikes was another worry reported by Canadian companies. There is concern about the persistent impact on borrowing costs in the months ahead, which could place severe financial strain on businesses.
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 2023 survey results for Canada and North America (USMCA), please download the full report available in the related documents section below. The Statistical Appendix to the regional report is also available for download in the section below.
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