For the first time, the Atradius survey on the health of business payments sees the inclusion of Brazil with countries in the NAFTA region. Effectively, good knowledge of practices payment methods in these markets is essential to avoid miscalculations that could lead to serious cash flow problems for the supplier. Regarding local payment behavior in Mexico, for example, the survey shows that domestic B2B invoices are by far the most likely to go unpaid by the due date, most often due to lack of liquidity. So become essential for a foreign supplier to have a global approach, knowledge and regularly updated information on the customer's potential financial strength and stability. In Brazil, the average total value of bad debts is the highest of the countries surveyed in the Americas due to buyer bankruptcy or failed collection attempts.
Furthermore, Brazil stands out as the market with the greatest difference in credit practices for domestic and foreign trade. In contrast, respondents in Canada and the US appear to be, on average, almost as likely to offer credit terms to domestic customers as to foreign ones. In all countries examined, however, develop relationships long-term business is the dominant driver for being able to offer credit terms to B2B customers. Contrary to this model, commercial credit terms are offered in Brazil that confirm the quality of the product before payment.
