Germany experiences a surge in payment delays in Coface, a significant market
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In a recent survey by Coface, it has been revealed that payment delays among German businesses have reached a four-year high, driven primarily by political uncertainty, geopolitical tensions, and economic challenges.
The survey, conducted in May and June 2025 on a sample of 847 businesses, shows that 81% of companies in Germany report new payment delays, an increase of 3% compared to 2024. The construction sector is the most affected, with 24% of companies in this sector experiencing prolonged payment delays.
The prolonged payment delays in the construction sector are a significant commercial risk and a negative economic signal. Worryingly, 80% of these delays are never recovered, and for 12% of the companies, these delays exceed 2% of their annual turnover.
The survey highlights a deteriorating payment environment amid political instability and ongoing geopolitical tensions, worsening payment behaviors despite Germany’s traditionally short payment terms. According to Bundesbank economists, Germany’s weaker export performance caused by global demand weakness, tariff shocks, and a declining price-performance ratio of German goods has contributed to overall economic stress, which can translate into slower payments from customers.
Another factor contributing to the rise in payment delays is the increase in payment terms. In 2025, 84% of German companies granted payment terms (their highest level since 2016), with 92% requesting payments within 60 days but still experiencing delays, pushing average payment delays up to 31.8 days.
The introduction of mandatory B2B e-invoicing from January 2025 places additional administrative burdens on companies. Non-compliance risks invoice rejections and delays in input VAT recovery, potentially delaying payments further. The rising size of Germany’s shadow economy, including undeclared work that bypasses normal tax and social contribution systems, suggests underlying economic stress that might also indirectly worsen payment reliability in the formal sector.
The Coface data does not specify payment delay distribution by industry in detail, but the overall trend shows worsening payment delays across sectors as payment terms rise and payment delays increase close to 2019 peaks. Export-related sectors likely face stronger pressure given Bundesbank’s identification of export decline as a key economic weakness. Compliance-heavy sectors directly impacted by the e-invoicing mandate (such as finance, manufacturing, and large B2B service providers) may experience operational delays affecting payment flows.
However, there is a glimmer of hope for the future. For 2026, a majority of German companies are optimistic, with a +16 point difference compared to the negative sentiment for 2025. This optimism is due to expected stimulus measures such as defense investments, infrastructure, climate transition, and corporate tax incentives. The survey also indicates that Germany, along with EU and EFTA countries, remains the most promising market according to respondents.
In response to these challenges, 23% of companies have already implemented "de-risking" strategies due to global and US trade policy uncertainties. It is estimated that the percentage of companies implementing these strategies will reach 54% in the next three years, particularly in export-oriented sectors.
In conclusion, the worsening payment delays in 2025 reflect intertwined factors of economic slowdown, regulatory shifts, and geopolitical uncertainty, with broad impacts that vary by industry exposure to exports and compliance complexity but generally signify a more challenging liquidity environment for German businesses this year.
The worsening payment delays among German businesses, as revealed by Coface, can significantly impact the finance sector, given that 80% of these delays are never recovered and for 12% of the companies, the delays exceed 2% of their annual turnover. The prolonged payment delays in the construction sector, which account for a significant commercial risk, also pose a challenge to businesses that provide services to this sector.
