B2B payment practices trends, Switzerland 2024

Swiss companies are enhancing their strategcompanies are enhancing their strategic credit management to mitigate the disruptive impact of payment risks. B2B payment practices trends, Switzerland 2024 Swiss companies are enhancing their strategic credit management to mitigate the disruptive impact of payment risks. Key takeaways from the report for Switzerland   The 2024 Payment Practices Barometer survey for Switzerland was conducted between the end of Q1 and the beginning of Q2 2024. The findings should therefore be viewed with this in mind. Trade credit delivers financial relief amid high borrowing costs 62% of Swiss companies are currently using trade credit as their main source of finance during a period of tight monetary policy and rising interest rates. Less than half of the  businesses in our survey report preferring bank credit. Companies are also reassessing trade credit policies, offering less credit and imposing stricter payment terms.   Many businesses are adopting this strategy, with less than half of all B2B sales being transacted on credit in the past 12 months in the chemicals sector. Prioritising the safety of cash transactions is also prevalent in the agri-food sector. In contrast, there is a rising trend of B2B sales on credit in the Swiss steel/metals industry, now comprising 60% of B2B sales volume. Export sector outlook and workforce shortage spark concern There is widespread concern among Swiss companies about the impact of weak global demand on the growth outlook of the domestic economy. In a country heavily dependent on foreign trade significant anxiety is evident about prospects for the export sector. The agrifood industry has specific worry about global competition limiting export growth.   40% of Swiss chemicals companies express apprehension about potential increases in regulatory compliance, a concern also in the agri-food sector. Long-term worries for businesses across all sectors include a slowing workforce supply and an uncertain outlook for the domestic economy. 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 2024 survey results for Switzerland and Western Europe, please download the full reports available in the related documents section below.  All content on this page is subject to our Disclaimer, available here