Late Payments in ASEAN Exports: How SMEs Are Bridging the Gap from 90 Days to 2 Days

The Reality of Late Payments in ASEAN Exports

For many SME exporters in Southeast Asia, long payment terms are an unavoidable part of doing business.
Whether it’s a buyer in Europe demanding 90–120 days credit or a distributor in the US negotiating extended payment timelines, cash flow often suffers while goods are already shipped and delivered.

In ASEAN markets like Indonesia, Vietnam, Thailand, and Malaysia, delayed payments are not just an inconvenience — they’re a major growth bottleneck. SMEs often find themselves stuck waiting months for overseas buyers to settle invoices, while supplier bills, wages, and production costs can’t wait.

Why Late Payments Are Increasing

Several factors are making late payments more common in 2025:

1. Global buyer bargaining power – Larger overseas buyers dictate terms to secure their own cash flow.
2. Shipping route disruptions – Red Sea tensions and port congestion slow document transfers and payments.
3. Currency volatility – Buyers delay settlements to benefit from favorable exchange movements.
4. Tight credit conditions – Buyers extend payment cycles to avoid bank borrowing costs.

The 90-Day to 2-Day Gap: Is It Possible?

While the idea of reducing a 90-day payment term to just 2 days might sound unrealistic, it’s exactly what export factoring is designed to achieve.

Export factoring allows SME exporters to sell their unpaid invoices to a finance partner (like Factorglobe) and get up to 90% of the invoice value within 48 hours.
When the buyer finally pays, the remaining balance — minus a small service fee — is released.

How SMEs Are Closing the Gap

Here’s how exporters across ASEAN are using factoring to transform their payment cycles:

• Vietnamese textile manufacturer – Instead of waiting 120 days for a US buyer, they get paid within 48 hours, funding raw materials for the next order.
• Indonesian seafood exporter – Smooths out seasonal cash flow gaps during peak harvest months without taking on expensive bank loans.
• Malaysian electronics supplier – Uses factoring to accept bigger overseas contracts without worrying about extended credit terms.

Benefits Beyond Fast Cash

1. No need for collateral – Approval is based on buyer creditworthiness, not the SME’s assets.
2. Reduced credit risk – Non-recourse factoring can protect exporters if a buyer defaults.
3. Better supplier relationships – Paying suppliers on time means better pricing and priority on orders.
4. More export capacity – Faster cash turnover allows SMEs to take on more orders simultaneously.

Choosing the Right Factoring Partner in ASEAN

When selecting a factoring provider, SMEs should look for:

• Experience with cross-border trade in ASEAN markets.
• Competitive advance rates (80–90%).
• Multi-currency settlement options.
• Strong network of overseas buyer checks to reduce payment risk.

Factorglobe, for example, specialises in helping Southeast Asian exporters bridge this exact cash flow gap — moving from 90 days to just 2 days.

The Bottom Line

Late payments in ASEAN exports are not going away anytime soon. But with the right financing tools, SMEs don’t need to be at the mercy of overseas buyers’ timelines.

Export factoring is giving businesses the power to say:
"We deliver today. We get paid today."

If your business is tired of waiting 90 days to get paid, discover how Factorglobe can help you access up to 90% of your invoice value in just 48 hours.
👉 Check your eligibility here

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