Eighty-five per cent of companies in France are affected by late payments. This is the finding of our France Corporate Payment Survey. The results also show that the payment period has increased to an average of 51 days. In Germany, the figure is 32 days, in Asia up to 70 days.
Longer and more frequent payment delays
The majority of French companies surveyed are reporting longer and more frequent payment delays than in 2023. A total of 97 per cent of the businesses granted payment terms to their customers, according to our second France Corporate Payment Survey. The average payment term has increased, currently standing at 51 days, compared to 48.2 days in the previous year. Comparative studies determined average payment terms of 32 days in Germany, 42 days in Poland, 70 days in China and 64 days in the rest of Asia.
Company size affects payment delays
Company size remains a determining factor in the length of delays, according to the survey. It shows that 73 per cent of micro-enterprises have noted an increase in delays, compared with only 55 per cent of SMEs and large companies. A slight majority reported delays of up to 30 days, a quarter of companies of more than two months. These include the sectors energy, financial services, but also pharmaceutical and automotive. 40 per cent of the companies that have experienced late payment attribute it to their customers’ financial difficulties.
Rising corporate insolvencies since 2023
The experts see a link between this payment situation and the increase in corporate insolvencies, particularly since 2023. In the first half of 2024, the insolvency figures were 23 per cent higher than in 2023 and 26 per cent higher than in 2019, before Covid.
Main risks facing French businesses
Main risks in France are seen by companies focusing on the domestic market in the political and social environment, recruitment difficulties and financing conditions. Exporting companies focus on risks relating to global demand, geopolitical tensions and supply chains. According to the survey, France remains a promising market for the latter. At 78 per cent – a figure gathered from a choice of three possible answers – France emerged as the most promising market, ahead of other EU countries (48 per cent), the USA (18 per cent) and the EFTA states (9 per cent).
Relocation projects on the rise
In view of geopolitical uncertainties, 25 per cent of the businesses surveyed said they had already launched a relocation project or were at least considering it. While this percentage is around 20 per cent in most sectors, it exceeds one third in pharmaceuticals and the textile industries. It is as high as two thirds in financial services. Most of the companies are considering relocating to France (77 per cent), followed by Spain (7 per cent) and Switzerland (3 per cent).
