France: customer relations set business tone for 2021

Payment Practices Barometer

  • France
  • Agriculture,
  • Construction,
  • Food,
  • Machines/Engineering,
  • Metals,
  • Services

25th November 2020

Businesses polled in France reported working more closely with B2B customers to develop a proactive approach to credit

Introduction

France has been severely affected by the COVID-19 virus and in response implemented a  long and stringent lockdown. This has impacted business throughout the country and has  resulted in a strong contraction of GDP. 44% of businesses reported cash flow issues, above the average of 38% for Western Europe as a whole.

An interesting trend revealed by the survey is that after the start of the pandemic  businesses in France began using trade credit as a tool to stimulate sales and provide short-term finance to B2B customers. Despite all of this negativity however, businesses polled in France also reported working more closely with customers to develop a proactive approach to credit.

Key takeaways from the report

  • Businesses in France target domestic sales with proactive credit policies
  • Credit terms become an important source of short-term finance
  • Late payment surge in France
  • COVID-19 pandemic leads to cash flow issue, as  reported by 44% of respondents in France, compared to 38% in Western Europe.
  • France leads region in sourcing credit information directly from customers. This was highest across the countries surveyed in Western Europe, and well above the 38% average for the region.

Interested in getting to know more?

For a complete overview of the corporate payment behaviour in France during the COVID-19 pandemic and global recession, please download the complete report.
The report gives also insight into the impact of the pandemic-induced economic crisis on the following industries in the country:

  • Agri-food
  • Construction materials
  • Business services
  • Machines
  • Steel-metals

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