"Almost £162 billion of British exports are at heightened risk because UK firms are shipping goods to markets where collecting payment is most difficult, according to new analysis. Research from Allianz Trade shows that nearly a quarter (24%) of all UK exports are destined for three countries, the United States, China and India, which pose the greatest challenges for debt collection among the UK's top 20 export markets."
"The US alone accounts for 12% of all UK exports and has been assigned a collection complexity score of 56 out of 100, placing it in the "very high" risk category. Allianz Trade said payment collection in the US has become riskier since 2022, as domestic payment culture has grown increasingly uncertain. The absence of a harmonised framework governing late payments means payment terms are largely contractual, while average Days Sales Outstanding (DSO) remain elevated."
"China, which represents 10% of UK exports, carries a "severe" collection complexity score of 66, while India, accounting for a further 2%, has a "very high" score of 57. Although Allianz Trade noted that complexity scores in both markets have eased slightly over the past four years, payment delays remain far longer than in the UK. Average DSO in China stands at 94 days and 75 days in India, compared with 51 days in the UK."
Nearly £162bn of UK exports are headed to markets where collecting payment is most difficult, with the United States, China and India accounting for 24% of exports. The United States represents 12% of exports and has a collection complexity score of 56, with contractual payment terms, elevated DSO and a fragmented legal system complicating recovery. China accounts for 10% with a "severe" score of 66 and India 2% with a "very high" score of 57. Average DSO runs at 94 days in China and 75 days in India versus 51 days in the UK, exposing exporters to prolonged delays and insolvency-related write-offs.
Read at Business Matters
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