France's Payment Delay Crisis Prompts New Rietmann Law

In 2024, delayed payments have stripped French SMEs and mid‑cap firms of about €17 billion in cash, a loss mainly driven by large corporations and public authorities. The average delay now exceeds 14 days and is rising, increasing a company's risk of failure by roughly 25 %. The upcoming Rietmann bill, soon to be debated in the National Assembly, aims to strengthen sanctions against chronic late payers, but companies are warned they must also embed delay risks into their treasury planning.

France's legal framework already caps payment terms at 30 days (or 60 days with agreement) under the Commercial Code and EU Directive 2011/7. While recent statistics show progress—65 % of firms received payments within 60 days, up from 51 % four years earlier—significant pockets of extreme delay persist, especially for very small firms and certain sectors where terms can extend beyond 120 days. Experts call for targeted action against these outlier delays to protect cash flow and prevent business collapse.