A Coface survey on payment behavior reveals an increase in the average payment period, with 85% of companies experiencing payment delays. Most report these delays are longer and more frequent than in 2023. This decline in payment behavior is contributing to a rise in insolvencies, which have now stabilized at much higher levels compared to 2019 and 2023.
Widespread Payment Delays In 2024
As in the previous year, offering payment terms remains a common practice in France: 97% of surveyed businesses, regardless of sector or size, extended payment terms to their customers. This percentage was above 90% across all industries. The average payment term has increased to 51 days, up from 48.2 days last year, and remains longer than in Germany (32 days) and Poland (42 days), but still shorter than in China (70 days) and the rest of Asia (64 days).
Even among very small businesses, which are typically less likely to grant payment terms, 95% still do. However, they tend to offer shorter payment terms, with 40% granting terms of less than one month, compared to under 20% for larger companies.
Learn more here: https://www.coface.com/news-economy-and-insights/increased-payment-delays-for-french-businesses-amid-growing-social-and-political-risks
