In Latin America, companies are facing liquidity pressures and more payment delays

Pressure on companies’ liquidity is mounting in Latin America; to protect themselves in an uncertain economic climate, they are shortening credit terms. However, this is failing to stem the rise in late payments. This is the finding of a survey on digital payments in the region, carried out by Coface, one of the world’s leading providers of credit insurance and commercial risk management.

Almost 8 in 10 companies have reported payment delays in the first six months of 2026, a figure up from 77% a year earlier, despite shorter payment terms (from an average of 59 days in 2025 to the current 56 days). This reduction is mainly due to the increased prevalence of very short payment terms, ranging from zero to 30 days, the survey explains. Overall, this year, 95 per cent of businesses have granted payment terms to their customers, compared with 88 per cent in 2025. Brazil and Argentina have the longest average payment terms, at 66 days, whilst Peru has the shortest, with an average of 43 days. As regards payment delays, the average duration has fallen to 33 days, compared with 42 days in 2025, suggesting more effective debt recovery practices. At country level, Peru has the shortest payment delays, at 24 days, whilst Ecuador has the longest, with an average of 44 days. The main causes cited by businesses for payment delays are customer difficulties, mentioned by 63% of respondents, followed by weak demand, cited by 29%, and fierce competition, reported by 26%. High financing costs, mentioned by 19% of businesses, are also a significant concern, particularly in Brazil.

“The rise in payment delays in Latin America confirms that liquidity remains a critical factor for business stability, particularly in a context characterised by high financing costs, fragile demand and intense competitive pressure,” comments Pietro Vargiu, country manager at Coface Italia. “The shortening of payment terms highlights greater caution on the part of companies, but does not eliminate the risk associated with customers’ ability to meet payment deadlines. For companies operating in international markets, it is therefore essential to adopt a rigorous approach to credit management, carefully monitor the reliability of counterparties and protect cash flows throughout the entire value chain.”

Almost 70% of businesses expect their performance to improve in 2026. However, significant risks remain, in particular the economic slowdown, cited by 24% of companies, fierce competition, cited by 21%, geopolitical tensions, cited by 13 per cent, and exchange rate volatility, mentioned by 8 per cent. High interest rates and financing costs are also considered a significant risk by 7% of companies. Against this backdrop, companies’ ability to safeguard their liquidity and accurately assess customer risk will remain a key challenge in 2026.