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Nearly 60% of Asia companies expect late payments: Why trade credit insurance matters now

Maybank’s Global Head of Trade, Donni Bambang Bintoro, on how Asia companies can access trade financing solutions and utilise trade credit insurance (TCI).
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With APAC’s economic growth projected to slow from 4.6% in 2024 to 3.9% in 2025, ultra-long payment delays exceeding 2% of annual turnover reached a high of 40%. To add, close to 60% of companies in the region expect late payments to worsen in the next six months, attributing this to slowing demand, competitive pressure, and rising costs. 

The impact is already being felt: Cash flows are disrupted, buyer insolvencies are climbing, and businesses trading on credit — which make up the majority of B2B transactions — face heightened credit exposure risks.

How are businesses responding to rising credit risks? 

Many are reshoring, pivoting, or exploring new markets to tap fresh opportunities, supported by a more favourable borrowing environment as interest rates ease. At the same time, around 60% of businesses are turning to a mix of internal funds and outsourced credit management — such as trade credit insurance (TCI) — to reduce default risks and free up cash.

Trade credit, especially when backed by insurance, can be the lever that preserves cash, secures buyers, and opens doors to safer trades in new markets. 

In this exclusive interview, Maybank’s Global Head of Trade, Donni Bambang Bintoro, shares how businesses can access trade financing solutions and leverage trade credit insurance to expand with confidence.

 

1) What patterns are you noticing in the way businesses borrow?

Donni:

As one of the largest banks by assets in ASEAN, we’ve seen a steady rise in trade-related lending. Businesses are no longer just borrowing to plug short-term cash flow gaps. Many are leveraging financing to enter new markets, fund go-to-market initiatives and invest in long-term growth — while preserving liquidity for day-to-day operations. This shift towards regionalisation has created greater demand for more integrated cross-border banking solutions.

 

2) What types of trade financing options are available, and which are most used by businesses?

Donni:

There’s no single formula; every business has different needs. We provide tailored financing solutions and advisory that goes beyond lending. Some common trade financing solutions include letters of credit, asset-based lending, pre-payments to suppliers, and accounts receivable (AR) financing. 

Although most businesses are aware that AR financing solutions are available, this option is often unfamiliar to many. As a result, it is underutilised and overlooked. Businesses might not realise that, besides helping with cash flow, AR financing can also manage risks, improve financial reporting and stakeholder management, and support long-term operations by using unpaid invoices as collateral.

AR often represents 20% or more of a company’s assets. Utilising an AR finance facility can unlock valuable cash flow to support strategic initiatives. This can be used for various business needs such as research and development, securing reliable suppliers through advance payments (potentially benefiting from early payment discounts), or funding accelerated growth projects in untapped markets. 

 

3) How do banks decide if a business qualifies for AR financing?

Donni:

When we assess a company’s eligibility for AR financing, we look at several key factors:

  • Buyer creditworthiness: Strong, financially stable clients improve approval chances and terms.
  • Size of funding: Larger requests require stricter due diligence, stronger receivables, and a proven track record.
  • Industry risk: Volatile sectors like construction or commodities face closer scrutiny.
  • Type of receivables: Export receivables carry added risks (e.g. currency and political risks), while domestic receivables are generally safer.
  • Age of receivables: Recent invoices are preferred; older receivables may be discounted or excluded.
  • Payment terms: Shorter terms (e.g. 30 days) are more attractive than longer ones (e.g. 90 days).
  • Buyer-seller history: Longstanding, reliable relationships build confidence, while disputes or late payments raise risks.

 

4) How does trade credit insurance influence a bank’s lending decisions?

Donni:

Many companies are not investment-grade, so when they back their AR with TCI, it changes the conversation. Without TCI, businesses may be asked to pledge properties, assets, or corporate guarantees. 

For us, insured receivables reduce risk, which can mean better pricing and terms for the client. With TCI in place, businesses improve not just their borrowing capacity but also their relationships with financial institutions. This is why many businesses are increasingly leveraging TCI to get the right coverage in place to expedite their financing requirements. In the past year, we’ve seen more companies seek trade credit protection for this very reason.

In short, besides leveraging TCI to mitigate the risks of non-payment especially with unfamiliar buyers in new markets, TCI can also serve as collateral when obtaining AR financing from banks. 

 

5) AI is such a hot topic and adopted in many industries. How do you see it being applied in trade financing? 

Donni:

The advancement of technology is already reshaping how we think about trade finance. For one, it helps us move away from paper-heavy processes by making transactions quicker and more accurate — whether that’s disbursements, claims, or routine checks. To facilitate cross-border banking solutions, Maybank will be launching its enhanced Maybank2E banking platform for businesses in our core markets — Malaysia, Singapore, and Indonesia — so clients can benefit with more seamless onboarding, cash management, and trade experience as part of the digital enhancements.

AI has unquestionably emerged as a popular topic, bringing significant advantages to numerous industries and businesses. What’s really exciting is its ability to analyse huge amounts of data. Rather than relying only on traditional ratings, AI can examine financial statements, transaction histories, and even market conditions to give a clearer picture of a business’s creditworthiness. That’s a big win for SMEs and private firms especially in markets that don’t always have formal ratings or buyer credit history.

AI also adds another layer of protection by spotting patterns that might signal potential defaults, fraud, or delays — often earlier than conventional methods. Of course, it’s not a switch you flip overnight, but used carefully, it can make trade financing both faster and safer. Given these benefits, Maybank is looking to invest in and plan for the integration of AI in trade financing.

 

Trade with confidence in a shifting market. By working with the right partners such as banks, insurers, and brokers, businesses can expand with confidence — even in uncertain times.

Why Marsh

As Asia’s leading insurance broker and risk advisor, Marsh has facilitated over $100 billion in insured credit and political risk transfers. Supported by over 100 Credit Specialties specialists across Asia, our award-winning team is dedicated to delivering innovative solutions to our clients.

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