French SMEs face record cash flow pressure from payment delays

French small and medium-sized enterprises (SMEs) are facing record levels of cash flow tension due to increasing payment delays. According to data from the Arc cabinet, the average payment delay between companies reached 18.9 days in 2026, the highest level in twelve years.

This trend has created a chain reaction, with 79% of surveyed companies admitting they have extended their own payment terms to suppliers to manage liquidity. The Banque de France estimated that these delays could have immobilized nearly 13 billion euros of cash flow for French SMEs in 2024 alone.

Business sentiment is also declining, with 25% of executives anticipating a drop in activity over the next six months. In response to these pressures, 71% of business leaders support the creation of a public rating system for payment delays to increase transparency and accountability.