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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