Increase in Payment Delays Among Brazilian Businesses in 2025 Spurs Use of Credit Insurance
Brazilian businesses face increased payment delays and longer credit terms in 2025, with many turning to credit insurance to mitigate growing risks.
- • 77% of Latin American companies faced payment delays in 2025, up from 51% in 2024.
- • Brazil's average payment delay rose to 36 days, three days more than in 2024.
- • Average payment terms increased from 53 to 59 days regionally, with some businesses extending terms to 90-120 days.
- • 28% of companies have adopted credit insurance to manage payment risk and economic uncertainties.
Key details
A recent study by Coface highlights a significant rise in payment delays and extended credit terms affecting Brazilian businesses in 2025. According to the Coface Payment Survey for Latin America, 77% of companies across the region reported experiencing payment delays in 2025, a notable increase from 51% in 2024. The average payment term also extended from 53 days to 59 days, with Brazil’s average payment delay rising to 36 days—three days higher than the previous year but still below the regional average.
Patricia Krause, Chief Economist at Coface for Latin America, explained that companies may be lengthening payment terms as a strategy to maintain sales amid high interest rates and financial difficulties faced by customers. The survey noted shifts in payment intervals, with the common term between 30 and 60 days remaining most frequent, yet terms of 90 to 120 days increased from 7% to 12% of companies. Sector differences are evident, with transportation having the shortest average payment term of 34 days, while timber, textile, and pharmaceutical sectors reported the longest, around 83 days.
Despite the rise in delayed payments, the average duration of these delays decreased from 52 to 42 days, indicating improved receivables management. Brazilian companies face challenges such as restrictive credit conditions, noted by 53% of respondents, contributing to the difficulties in payment cycles.
In response to the growing risk of non-payment, 28% of companies in the region have adopted credit insurance as a protective measure. Krause emphasized the importance of credit insurance in transferring payment default risks, especially under current economic uncertainties and selective banking credit environments. Looking ahead, most businesses in Latin America, including Brazil, hold a cautiously optimistic outlook for 2026, anticipating stability in economic activity and payment conditions, partly due to expectations of lower interest rates that could enhance business environments.
This trend toward longer payment terms and increased reliance on credit insurance reflects broader financial pressures on Brazilian companies amid a challenging economic context in 2025.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.