The Fraud Repression Agency (DGCCRF) has imposed sanctions on 138 companies that did not pay their suppliers on time from January to May, resulting in nearly 30 million euros in fines and pre-fines. Notable companies fined included Renault, Ikea, Arcelor Mittal, Eurodisney, and HSBC Continental Europe.
Late payments can have a significant impact on the competitiveness and profitability of businesses providing services to their clients. Payment delays weaken cash flow, making it harder for businesses to invest in growth opportunities or cover operational costs.
In mid-June, the payment deadline observatory reported a decrease in inter-company payment deadlines for all sizes of companies in 2022. Large companies were particularly notorious for paying their suppliers late, with delays lengthening from an average of 11 days in the previous year to 12.6 days in the 4th quarter of 2023.
The Minister for Business, Olivia Grégoire, emphasized the importance of strengthening penalties against companies that fail to make timely payments. Late payments pose a significant risk to the financial stability of other businesses, as they can lead to a domino effect that affects multiple industries and sectors. In total, there are approximately 15 billion euros worth of cash nature at risk due to late payments.
Overall, it is crucial that businesses prioritize timely payments and adhere to agreed-upon deadlines to maintain a healthy financial ecosystem and avoid potential consequences such as legal action or reputational damage.
