B2B payment practices trends, France 2024

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The survey indicates a significant concern regarding bad debts, which now affect 10% of all invoiced B2B sales, double the level from the previous year, particularly impacting the energy/fuels sector [13][34] - Companies in France are generally cautious about offering trade credit, with only 40% of B2B sales transacted on credit, despite 73% expressing openness to it [8][7] - The construction sector shows the highest inclination towards trade credit, averaging 46% of transactions on credit, while consumer durables and energy/fuels sectors average 41% and 36% respectively [8][7] Summary by Sections B2B Payment Practices Trends - Companies in France are cautious about trade credit, with only 40% of B2B sales on credit despite 73% being open to it [8][7] - The construction sector leads in trade credit usage, averaging 46% of sales on credit, while consumer durables and energy/fuels sectors average 41% and 36% respectively [8][7] - Payment terms have lengthened in consumer durables and energy/fuels sectors, averaging a couple of months from invoicing [9][7] Key Figures and Charts - Bad debts now account for 10% of all B2B sales, with late payments affecting 47% of invoiced sales [14][34] - Nearly 80% of businesses report no change or worsening in debt collection efficiency, indicating potential financial strain [14][15] Looking Ahead - The primary concern among French companies is the stagnation of the domestic economy, impacting both short-term and long-term business outlooks [28][30] - 52% of companies anticipate a deterioration in B2B customer payment behavior in the coming year, particularly in the consumer durables sector [34][36] - Concerns about regulatory compliance, environmental issues, and cybersecurity threats are prevalent across all sectors [30][29]