German companies struggle with worsening payment behaviour in 2025

In 2025, German companies are increasingly burdened by delayed payments, as revealed by the latest annual survey conducted by credit insurer Coface. According to the findings, 81 per cent of surveyed firms are currently experiencing late payments—a significant rise from 59 per cent in 2021. Despite this deterioration in payment culture, a substantial 84 per cent of companies continue to extend supplier credit to their customers, offering an average payment term of approximately one month.

The transport sector is notably impacted, with nine out of ten companies reporting payment delays, reflecting a 22-percentage-point increase from the previous year. This trend is attributed to ongoing challenges in manufacturing and trade, which have reduced order volumes and affected logistics businesses. Conversely, the automotive industry has witnessed an improvement in payment behaviour. The proportion of firms experiencing late payments dropped to 76 per cent in 2025, down from 88 per cent in 2024. This improvement is linked to past insolvencies that have led to a leaner, more reliable sector.

Average payment delays across all industries rose to nearly 32 days, up by one day compared to 2024. The construction industry recorded the longest delays, averaging 40 days, while the metal industry reported a shorter average delay of 25 days. Of particular concern are invoices overdue for six months to two years. Approximately 12 per cent of companies face such prolonged delays, which account for at least 2 per cent of their annual revenue. These debts pose a serious liquidity threat, as Coface’s analysis indicates that roughly 80 per cent of such overdue invoices ultimately remain unpaid. In mechanical engineering, however, the situation has improved: only 15 per cent of companies reported experiencing these extreme delays in 2025, compared to 30 per cent the previous year.

Despite the growing risk of overdue payments, German firms continue to provide short credit terms. The average payment term remained steady at 32 days in 2025, a figure consistent with the two preceding years. Sectors with strong export orientation, such as mechanical engineering, reported the highest incidence of offering credit terms, at 98 per cent. Nonetheless, Germany remains conservative in international comparison. Average payment terms in Poland stand at 46 days, in France at 51 days, and in China at 76 days. Within Germany, practices vary widely: the construction industry offers the shortest average term of 23 days, while the automotive sector allows up to 44 days.

The construction industry remains a persistent area of concern. It not only records the highest incidence and longest duration of payment delays, but also shows signs of a structural problem. The sector has been in recession since early 2021, and even during more prosperous periods like 2019, it continued to display inferior payment behaviour compared to other industries.

The Coface survey, now in its ninth edition, was conducted in May and June 2025 and included responses from 847 companies across more than a dozen industry sectors.