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B2B Transactions Fall By 62% Due to Corona Virus

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Viveka Alvestrand
Digital Marketing Manager
2020/03/20

Global business transactions have fallen by a staggering 62 percent since the start of this month, according to research by Tradeshift.

The report from the digital supply chain payments and marketplace specialist, which handles trade transactions between 1.5m+ businesses in 190 countries, is a stark gauge of the impact the COVID-19 pandemic is having on global trade.

As the virus spreads across the world and business slows down, one thing will be on every business leader’s mind: liquidity worries.

Christian Lanng, CEO of Tradeshift, said in an interview: “Every conversation I’m having with businesses right now centres on cash flow. Companies are looking at how they can keep cash on their books to see them through the current period.”

He added: “But they’re also acutely aware that suppliers are facing the same liquidity challenges. If cash dries up across the supply chain, we could see a lot of smaller businesses start to fold. It’s a balancing act. Get it wrong and the whole house of cards could come down.”

“Large organisations I’m talking to recognise the importance of keeping supply chains solvent right now. Governments have been proactive in introducing measures to try to ease the pressure. But we can’t afford to leave any stone unturned. There is $1.5 trillion in liquidity sitting trapped and doing nothing in accounts receivable. If ever there was a time to take a serious look at how we unlock that capital and make it accessible to every business across the supply chain, it is now,” Lanng said.

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