Late payments remain an increasing problem in the EU, with more than half of companies reporting difficulties as a result in 2024. According to suppliers, average payment periods exceeded 60 days in both B2B and G2B transactions, with governments paying later than businesses in every Member State. As observed in every year analysed, the larger the company, the less likely it is to pay on time. At sector level, however, payment performance varies widely, differing more across Member States than across sectors within a single country.
This edition of the Annual Report introduces a new section on payment terms. The analysis shows that longer payment terms are associated with longer payment periods in 87% of cases, and that most companies surveyed by the Commission support limiting payment terms.
Amid economic uncertainty and a slowdown, companies are increasingly concerned about late payment practices, while structural issues persist. The consequences of a poor payment culture are diverse, with impacts on investment and growth most frequently cited. In addition, pursuing late payments represents a significant administrative burden for companies.
The Annual Report is the Observatory’s main analytical output, providing a comprehensive overview of key trends and developments in payment performance related to commercial transactions in 2024.
This report was written in the context of a European Commission project to set up a European Payment Observatory. The report was originally published here.