In order to bring relevant information to companies, we are producing a new infographics showing the main results of the 2018 annual report of the French Observatory of Payment Delays.
On April, 8th in Paris, Mrs. Agnès Pannier-Runacher, Secretary of State to the Minister of the Economy and Finance, and Mrs. Jeanne-Marie Prost, President of the Observatory of Payment Delays, presented the evolution of payment delays in 2018.
Respecting payment delays remains a major concern for all business leaders and a fundamental issue for their companies’ financing and competitiveness.
Since the Law for the Modernization Economy(LME) was adopted, any French company is required to pay its suppliers within a maximum of 60 days after the issuance of the invoice (or 45 days end of the month).
Encouraging results in France
The average payment delay in France stabilizes around 10.9 days in the 3rd quarter of 2018 (against 11.6 days late YTD 2016). This puts France in third place across Europe, just behind Germany and the Netherlands.
This encouraging result can be explained in particular by the successive reforms of 2014, 2015 and 2016 which has generared : the application of administrative sanctions & the associated “name and shame”, and tighter controls wihtin companies regarding their suppliers’ payment processes.
In 2018, the DGCCRF sanctioned no less than 377 companies for a total amount of 29.1 million euros (vs 8.6 million euros in 2017) and 98 sanctions decisions were published on the website of the DGCCRF.
Large disparities between companies depending on their size and market
However, only 50% of large corporates respect the law when it comes to paying their suppliers.
It is in the transportation, accommodation, information & communication markets that the delays are the most important, with an average delay of 14 days. B2C and B2B services markets are just ahead with respectively 12.4 and 12 days.
Great disparities between European countries
By comparison, this delay is over 26 days in Portugal, over 18 days in Italy and over 15 days in the United Kingdom. The European average stands at 13.2 days.