Japanese firms face late payments tied to customer credit risk

Coface found 73% were affected during the 12 months before the survey.

Nearly three-quarters of Japanese companies experienced payment delays from customers over the past year, as customers’ financial condition and creditworthiness were identified by 21% of respondents as the main cause of payment delays. 

The Coface APAC Payment Survey 2026 found that 73% of Japanese firms were affected by late payments during the 12 months before the survey. 

Whilst this was lower than the Asia-Pacific average of 91%, Japanese companies reported a higher rate of customer defaults.

Half of the Japanese respondents experienced at least one customer default, compared with 45% across the region. 

Amongst companies affected by defaults, 62% said the losses represented up to 5% of their receivables. The corresponding figure for Asia-Pacific was 54%.

Payment delays also became more frequent and severe for some Japanese businesses. About 28% of respondents reported increases in both the frequency and severity of delays. By comparison, 12% reported less severe delays and 14% reported fewer delays.

Japanese firms generally offered shorter payment terms than businesses elsewhere in the region. The average payment term in Japan was 62.7 days, compared with the Asia-Pacific average of 70.2 days.

Overall, 35% of Japanese respondents expected payment conditions to worsen over the next 12 months. This was below the regional figure of 48%.

Coface said customer relationships continued to influence how Japanese companies handled late payments.

About 54% of respondents said long-standing relationships affected their tolerance of delayed payments, whilst 66% said relationship considerations could sometimes outweigh financial warning signs.

The survey also found that Japanese companies made less use of financial information and analytics when assessing payment risks. 

Financial information had at least a moderate influence on risk assessments at 65% of Japanese firms, compared with 78% across Asia-Pacific.

About 58% of Japanese respondents relied on informal methods or limited data analysis to assess payment risks, well above the regional average of 36%. 

Respondents cited incomplete financial disclosure, limited reporting by small and medium-sized businesses, and a lack of transparency as the main problems with available financial information.

Coface surveyed 2,800 finance professionals across 10 Asia-Pacific markets in March and April 2026. The survey included 252 respondents from Japan.