Payment Deadlines Between Businesses in France
Article Summary
The French Ministry of Economy and Finance recently published an article titled “Délais de paiement entre les entreprises” (Payment Deadlines Between Businesses) on January 31, 2025. The article discusses the current state of payment deadlines between businesses in France and the government’s efforts to reduce these deadlines.
Current State of Payment Deadlines
According to the article, the average payment deadline between businesses in France is 60 days. This is significantly higher than the European Union average of 45 days. Long payment deadlines can have a negative impact on businesses, particularly small and medium-sized enterprises (SMEs). They can lead to cash flow problems, increased borrowing costs, and reduced investment.
Government’s Efforts to Reduce Deadlines
The French government has recognized the negative impact of long payment deadlines and has taken steps to address the issue. In 2013, the government introduced a law that set a maximum payment deadline of 60 days for all commercial transactions between businesses. However, the article notes that this law has not been fully effective in reducing payment deadlines.
In response, the government has announced plans to implement additional measures to reduce payment deadlines. These measures include:
- Increasing inspections and penalties for businesses that violate the maximum payment deadline law
- Providing financial incentives for businesses that adopt shorter payment deadlines
- Raising awareness of the negative consequences of long payment deadlines
Benefits of Shorter Payment Deadlines
Shorter payment deadlines can provide a number of benefits for businesses, including:
- Improved cash flow
- Reduced borrowing costs
- Increased investment
- Strengthened relationships with suppliers and customers
Conclusion
The French government is committed to reducing payment deadlines between businesses and has implemented a number of measures to achieve this goal. Shorter payment deadlines can provide significant benefits for businesses and help to create a more favorable business environment in France.
Délais de paiement entre les entreprises
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economie.gouv.fr a new article on 2025-01-31 15:10 titled “Délais de paiement entre les entreprises”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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