- Global average Days Sales Outstanding (DSO) fell by -1 day to 65 days in 2018, following a 10-year high in 2017, a sign of companies taking a cautious approach to their clients’ payment behavior. As world GDP growth continues to slow further, Allianz Trade expects DSO to reach 64 days in 2019.
- Chinese companies still recorded the longest average payment term at 92 days, with one in four companies being paid after four months, mirroring their role as “invisible banks” at a domestic level and for the rest of Asia.
- Mediterranean countries are back to their bad habit of paying late: Italy, France, Greece and Spain saw their average DSO lengthen by +5 days, +2 days, +2 days and +1 day, respectively, in 2018.
- Companies in the electronics (-2 days), machinery (-1 day) and construction (-3 days) sectors continue to suffer from the longest DSO with 89 days, 86 days and 82 days, respectively, in 2018 - well above the global average. B2C companies had more control over payment times.
Authors
Georges Dib
Manfred Stamer
