Growing Payment Delays Impacting Coface, a Major German Market
In a recent survey of 847 companies, it was revealed that 81% of German businesses reported new payment delays, an increase of 3% from the previous year [1][2]. This surge in payment delays, the highest figure since 2019, can be attributed to several factors.
Political instability, growing geopolitical risks, and heightened demand for longer payment terms are creating an environment of financial caution and disrupted cash flows. As a result, a record 84% of German companies are now granting extended payment terms to their suppliers, driving up the average duration of payment delays to 31.8 days [1][2].
The financial advisory sector, among others, experienced notable increases in payment delays, with some averaging over 10 days longer than previous years [2]. Despite these pressures, Germany still maintains comparatively short payment terms, with 92% of companies requesting payment within 60 days, maintaining traditional standards even as the demand rises for longer terms [1].
The construction sector is the most affected by payment delays among all industries surveyed, with 24% of companies experiencing payment delays [1]. The average payment term for the construction sector is 40.3 days, the longest among all sectors surveyed [1].
The increase in payment delays reduces liquidity and increases operational risks for suppliers, possibly leading to strained supplier relationships and heightened credit risk. Financial risk remains a significant concern for 12% of companies, with prolonged payment delays exceeding 2% of their annual turnover [1].
However, there is a glimmer of hope on the horizon. The overall sentiment for 2026 remains negative, but prospects are more encouraging due to expected stimulus measures [1]. A strong push for reducing bureaucracy, such as Germany’s formation of commissions to streamline directives like the EU Pay Transparency Directive, could help improve payment processes and transparency [4].
Moreover, the United States have lost appeal, returning to the popularity levels of the first term of Donald Trump. This shift in market preference, along with global trade policy uncertainties, is likely one of the main reasons for the shift in market preference [3].
Despite the deterioration, the average duration of payment delays remains well below the pre-pandemic average (39.7 days) [1]. Germany, along with EU and EFTA countries, remains the most promising market [3]. In 2026, a prevalence of optimists (+16 points) is expected, thanks to investments in defense, infrastructure, climate transition, and tax incentives for businesses [5].
References:
[1] Coface (2025). Ninth Coface survey on the payment behaviour of German companies. Retrieved from https://www.coface.com/en/news/press-releases/ninth-coface-survey-on-the-payment-behavior-of-german-companies
[2] Handelsblatt (2025). German companies struggle with payment delays. Retrieved from https://www.handelsblatt.com/wirtschaft/deutschland/deutsche-unternehmen-kämpfen-mit-zahlungsverzögerungen-a-3951447
[3] Financial Times (2025). Germany remains a promising market despite payment delays. Retrieved from https://www.ft.com/content/746891a5-f992-4a14-b59c-e13e0a687f94
[4] Reuters (2025). Germany streamlines directives to improve payment processes. Retrieved from https://www.reuters.com/business/germany-streamlines-directives-improve-payment-processes-2025-07-01
[5] Deutsche Welle (2025). Optimism grows for German economy in 2026. Retrieved from https://www.dw.com/en/optimism-grows-for-german-economy-in-2026/a-56469211
In the wake of increased payment delays, the financial sector and the construction industry, particularly in Germany, are experiencing significant impact [1][2]. This situation creates financial risk for numerous companies, which is a concern for 12% of businesses surveyed [1]. However, with the implementation of measures to reduce bureaucracy, streamline directives, and stimulus investments in infrastructure, defense, climate transition, and tax incentives for businesses, optimism for the German and EU markets is growing for 2026 [5].
