Despite calls from business ombudsman Pierre Pelouzet for “2021 to be the year when everyone pays their suppliers on time, or even in advance”, the level of 10-day overdue payments in France is on the rise again.
While since the beginning of the year, the overdue situation in France has been stable, albeit well above the pre-pandemic level (19%), crossing this floor only a few times only to rise again immediately to around 22%, the tracker’s reading on Monday April 19, 2021 indicates a surge to 25% overdue, a level last reached on September 20, 2020,” reads the latest edition of the Sidetrade – BFM Business tracker on late payments by companies.
This three-point increase in the space of a week resulted in an estimated cash loss of 19 billion euros.
And if we take into account the value of inter-company credit in France, estimated by the Banque de France at 722 billion euros, 24.81% of which is currently blocked by late payments compared with only 19% before the crisis, the impact suffered by French companies can be estimated, as at April 5, at 42 billion euros.
179 billion euros currently blocked in France
In all, our partner estimates that over 179 billion euros are currently blocked in France by late payments. France remains Europe’s worst performer when it comes to late payments. Our country ranks second behind Belgium for unpaid bills.
In terms of sectors, it is the public service/education sector that is experiencing the sharpest deterioration (observed since the beginning of March). The level of unpaid bills rose from 19% (7 points below its pre-pandemic average) to 37% on April 5, the highest rate for any sector, before falling back to 29% on April 19.
Conversely, the food industry has experienced exactly the opposite sequence since March 6, dropping from 49% on that date to 22% on April 19, 17 points below its pre-pandemic average.
Our tool is freely available to all decision-makers in the private and public sectors, and will be published regularly on the BFM Business website. You can also follow the evolution of the curve live on this country-by-country page.
Full text of article: https://www.bfmtv.com/economie/entreprises/les-factures-impayees-dans-les-entreprises-repartent-a-la-hausse_AN-202104280337.html
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