Payment delays escalating in Coface's German market, a notable sector for issued credit
In 2025, Germany has witnessed an increase in payment delays among businesses, marking a four-year trend of growth in this area. This rise in payment delays can be attributed to several factors, such as economic uncertainty and geopolitical tensions, as well as shifts in payment terms and challenges in managing financial obligations effectively.
According to a survey conducted by Coface, a company specializing in credit insurance and risk management, 81% of companies in Germany reported new payment delays, a 3% increase from 2024 and close to the 2019 peak of 85%. The construction sector has been particularly affected, with 24% of companies reporting payment delays.
One of the key factors contributing to the rise in payment delays is the economic uncertainty and geopolitical tensions that have affected business confidence and cash flow management. This is reflected in the financial advisory sector, which has seen a significant increase in payment delays, with an average increase of 10.3 days.
Despite these challenges, there is optimism about future economic prospects, as companies view Germany as a stable market amid global uncertainty. However, financial risk remains a concern, with 12% of companies having experienced prolonged payment delays exceeding 2% of their annual turnover.
The survey also revealed that 92% of surveyed companies in Germany require payment within 60 days, the same level as in 2016. In contrast, in 2025, 84% of German companies offer payment terms, a record since 2016. This shift towards longer payment terms could strain working capital, affecting businesses' ability to invest in operations and manage cash flows effectively.
The German payments market is evolving to address these challenges. The introduction of instant payment infrastructure is expected to improve working capital management by facilitating faster transactions. Additionally, fintech companies are leveraging real-time payment rails to offer innovative services like cash-flow dashboards and variable recurring payments, which could help mitigate payment delays.
However, the rise of Buy-Now-Pay-Later (BNPL) services among millennials could reshape consumer payment habits but might also increase debt-related risks unless managed carefully.
In conclusion, Germany is currently experiencing a significant deterioration in payment conditions among businesses. The survey findings suggest that addressing the issues of short payment terms and delays, managing financial obligations effectively, and fostering innovation in the payments sector will be crucial for maintaining a healthy and stable economy.
[1] Coface (2025). "Payment behavior of German companies 2025." [Online] Available at: https://www.coface.de/en/publications/payment-behavior-german-companies [2] Coface (2025). "Press release: Payment behavior of German companies 2025." [Online] Available at: https://www.coface.de/en/press/press-releases/payment-behavior-german-companies-2025 [3] Coface (2025). "German payments market: Instant payment infrastructure, fintech innovations, and the rise of BNPL services." [Online] Available at: https://www.coface.de/en/publications/german-payments-market-instant-payment-infrastructure-fintech-innovations-and-the-rise-of-bnpl-services
The financial advisory sector in Germany has experienced a significant increase in payment delays, averaging a 10.3-day increase, due to the economic uncertainty and geopolitical tensions impacting business confidence and cash flow management. To tackle this issue and foster innovation in the payments sector, the German payments market is evolving, with the introduction of instant payment infrastructure and fintech companies leveraging real-time payment rails to offer services like cash-flow dashboards, aiming to mitigate payment delays.
