Understanding the Impact of Lengthening Payment Deadlines on Companies’ Cash Flow – Gazette of the Commons

2024-02-14 10:09:28

This is a point of tension regularly raised by the National Federation of Public Works (FNTP): payment deadlines which are lengthening, with a direct impact on companies’ cash flow.

A phenomenon partially confirmed by the Observatory of payment deadlines in the report presented in June 2023. If overall deadlines are decreasing, the observatory reports a targeted, but modest, increase in payment deadlines for purchases local authorities between 2021 and 2022: from 25.6 days on average in 2021 to 26.3 days for the regions; from 18.9 days to 19.3 days for the departments, from 18.7 days to 19.5 days for the municipalities (all strata combined). For their part, the communities assure that they are not sparing their efforts.

However, this subject has…

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