Respecting supplier payment terms remains a crucial challenge for all businesses. In a strained economic environment where cash flow is under pressure, this issue becomes even more strategic. At RollingFunds, we help companies secure their supplier payments while preserving their cash flow, thanks to our B2B deferred payment solution. Here's what you need to know to stay compliant and manage your cash effectively. 

What Does the Regulation Say About Payment Terms Between Businesses? 

Even though BNPL Buy Now, Pay Later (BNPL) is becoming increasingly popular in B2B, payment terms are not unlimited. They are regulated by law—particularly the LME law, and must be contractually agreed upon between the parties while respecting legal caps. 

Who Sets the Payment Terms? 

In France, companies define their payment terms with their clients, within the limits set by the French Commercial Code. Some sectors are subject to specific regulations (Article L441-11).

What the law says: 3 possible scenarios 

  • Default Term: Without a specific agreement between the client and the supplier, the invoice must be paid within 30 days of delivery or completion of the service. 
  • Negotiated Term: A contractual agreement can extend this period to a maximum of 60 days from the invoice date. 
  • Exceptional Term: A 45 days end-of-monthcan be negotiated, provided it doesn’t constitute an obvious abuse toward the supplier. This term must be explicitly stated in the contract. 

Specific Provisions Under the Hamon and Sapin 2 Laws

  • Hamon Law (2014): For periodic invoices, the payment term is capped at 45 days.. 
  • Sapin 2 Law (2016): For purchases of goods under VAT exemption, a payment term of up to 90 days may apply. 

Where Should the Payment Terms Be Indicated? 

They must be clearly stated in the General Terms and Conditions (GTC) and on every invoice. Any omission or lack of clarity may lead to penalties. Make sure your clients are fully informed of their payment obligations. 

What Are the Penalties and Remedies for Non-Compliance with B2B Payment Terms? 

Payment deadlines between businesses are far from a mere formality—they are legally regulated, and failure to comply can expose companies to significant penalties. Here's an overview of the risks involved and the options available when payments are late. 

Financial Penalties: What the Law Provides

When a payment is made after the legal or contractual deadline, several consequences may apply: 

Administrative Fine 

Article L441-16 of the French Commercial Code is clear: a company that fails to comply with payment deadlines may be subject to an administrative fine of up to €2 million (for legal entities). In the case of a repeat offense within two years, the fine may be doubled.. 

Late Payment Penalties 

Mandatory and automatic, late payment penalties must be no less than three times the legal interest rate. The contract may define the applicable rate; otherwise, the European Central Bank rate plus 10 percentage points applies by default.

Flat Recovery Fee

In addition to late payment penalties, a €40 fixed fee per unpaid invoice must be systematically mentioned on your B2B invoices. This fee is due from the very first day of delay.

Enhanced Oversight by Statutory Auditors 

Statutory auditors also serve as watchdogs: they are required to verify that payment terms are respected and consistent with the company’s accounting records. Any unjustified discrepancy can lead to a formal report. 

Remedies for Unpaid Invoices: Amicable or Legal

When a client is late in paying, the first step is generally to initiate an amicable reminder. If this fails, the company can turn to legal recovery, involving a specialized collection agency or a judicial officerto recover the unpaid amounts—or even begin legal proceedings. 

Where Do French Companies Stand on B2B Payment Terms? 

Despite strict legal regulations and increased oversight, meeting payment deadlines remains a persistent challenge for many businesses in France. These delays put significant strain on cash flow and complicate the management of working capital requirements (WCR), especially for digital and intermediary-based businesses. 

Persistent Structural Delays 

Each quarter, the Altares firm publishes an overview of intercompany payment practices. In 2022, the average payment delay was 13 days, in France and across Europe — back to pre-COVID levels after two years of deterioration. In other words, only one in two companies meets its payment deadlines.. 

In response, the DGCCRF DGCCRF (France’s competition and fraud authority) has increased audits and publicly names companies penalized for excessive delays. However, despite these deterrents, inflation and cash flow tensions observed since 2023 have made it increasingly difficult for companies to comply with payment terms. 

Payment Terms and WCR: A Growing Pains Dilemna

Across all industries, the situation is often the same: 

  • On one side, independent service providers requesting fast payment, 
  • On the other, large enterprise clients extending their payment terms, 
  • In between, a cash squeeze that threatens liquidity.

As activity grows, the WCR increases—but available liquidity does not follow. This imbalance slows growth, even for profitable businesses. 

RollingFunds: Integrated, Frictionless Supplier Payment Financing

Traditional solutions like factoring or bank credit lines quickly show their limits: they are rigid, slow to implement, and poorly suited to recurring, scalable financing needs. for companies. 

With RollingFunds, supplier payment financing is directly integrated into your business tools, with no friction. You can secure your payment deadlines, offer better payment terms to your partners, and relieve your WCR, —all while keeping your cash flow smooth and under control..