You are chasing the same client for the third time this month. The amount is not huge, but the time spent chasing, tracking, and recalculating penalties adds up. Payment terms are not just a cash-flow question, they are set by law, and starting September 1, 2026, a new obligation changes things for every business.
Article updated on July 10, 2026.
Key takeaways
- The default legal deadline is 30 days after receiving the service, unless otherwise agreed.
- A negotiated deadline can go up to 60 days from the invoice date, or 45 days end of month.
- A late payment costs the client: a 12.75% penalty plus a flat €40 collection fee per invoice.
- Electronic invoicing becomes mandatory on September 1, 2026 for receiving invoices, regardless of company size.
The different payment deadlines
Payment terms vary depending on several factors, including the industry sector, the relationship with the client, the amount, and current market practices. Standard terms often include:
- Immediate payment: used for real-time transactions (internet, shop, often for physical goods).
- 30 days after receipt: the default legal deadline in France, applicable whenever no other term has been negotiated between the parties.
- 45 days end of month: allows the client to pay the invoice within 45 days of the end of the billing month, a common option in B2B and service sales.
- Custom deadline up to 60 days: some choose a specific number of days after the invoice date, provided the legal cap is never exceeded (to be adapted to your business model, working capital, or invoice amounts).
Legal aspects of invoicing
In France, Article L441-10 of the Commercial Code sets the framework: absent an agreement between the parties, the default payment term is 30 days after receiving the goods or completing the service. The parties can negotiate a longer term, but it cannot exceed 60 days from the invoice date, or 45 days end of month. For recurring invoices, the term is set at 45 days from the issue date.
Exceeding these caps has a real cost for the client. In case of delay, penalties apply automatically, with no formal notice required: a rate based on the ECB refinancing rate plus 10 points, or 12.75% in the second half of 2026, plus a flat €40 collection fee per unpaid invoice.
Optimal payment management
For effective management, we advise you to:
- Define a clear credit policy : establish precise rules regarding payment deadlines and communicate them clearly from the outset of the business relationship. Ignoring these issues for fear of addressing them is a serious mistake that will have far-reaching consequences soon after. Clarifying things beforehand and ensuring everyone understands is essential. You certainly don't want to waste time on legal proceedings with late payers.
- Use billing management tools : software can help track invoices, calculate deadlines, and send automatic reminders. Automation will save you valuable time and a lot of headaches! ;)
- Payment reminders : In case of delays, a structured reminder procedure is essential. Start with friendly reminders before escalating the situation. Tip: Don't immediately resort to harsh measures; accusing your clients of being late will only alienate them. Instead, feign oversight or offer payment solutions ("I see the invoice payment is a little late; would you like us to set up a payment plan?" Generally, no one wants to be considered a bad payer).
Reduce payment times
To speed up payments, consider the following tips:
- Incentives for early payment : offer discounts for early payments.
- Late Payment Penalties : Late payment fees can encourage customers to pay on time.
- Electronic invoicing : reduces invoice processing and sending times.
- Outsourcing your payments : some payment solutions, like Alma, pay you the invoiced amount immediately and handle collecting the money from your client. No more chasing, no more stress over late invoices, less worry.
Faced with payment delays
Despite all precautions, payment delays can occur. Here's how to deal with them:
- Proactive communication : Contact the client to understand the reason for the delay. It's crucial to seek answers before acknowledging the delay. This will strengthen your relationship and help you find a solution more quickly.
- Payment plan : if the client is experiencing financial difficulties, offer a payment schedule, a deferral or another solution that suits them without jeopardizing your situation.
- Legal recourse : As a last resort, legal action may be necessary. Consult specialist lawyers.
Electronic invoicing: the deadline that changes everything
Starting September 1, 2026, every company subject to VAT in France must be able to receive electronic invoices, regardless of size. Large companies and mid-caps will also have to issue them and transmit their transaction data (e-reporting) by the same date. SMEs, small businesses and micro-enterprises have until September 1, 2027 for issuing.
This is no longer a distant project. The timeline was confirmed with no further delay at the official presentation of the reform in early May 2026. Any company that invoices business clients must be ready to receive, and for larger structures, to issue, its invoices through an approved platform.
How Cash automates your invoice tracking
Cash centralizes quotes, invoices, e-signature and payment tracking, with real-time visibility into what's paid, overdue, or upcoming. No more manually recalculating a penalty or tracking down who owes what.
On electronic invoicing, this is a compliance topic that doesn't get solved in-house with a spreadsheet. Better to rely on a tool already built for this deadline than to discover the constraint on September 1st.
In brief
Payment terms are not negotiable by gut feeling, they are set by law. And electronic invoicing is arriving with a hard deadline. The real challenge isn't knowing the rules, it's not having to check them on every invoice.
See how Cash tracks your deadlines for you
FAQ
What is the default legal payment term in France?
30 days after receiving the goods or completing the service, unless otherwise agreed on the invoice or in the terms and conditions (Article L441-10 of the Commercial Code).
Can you exceed a 30-day payment term?
Yes, if both parties agree, up to 60 days from the invoice date, or 45 days end of month. This negotiated term must be stated on the invoice.
What happens to a client who pays late?
Late payment penalties calculated on the ECB refinancing rate plus 10 points (12.75% in the second half of 2026), plus a flat €40 collection fee, applicable without prior formal notice.
When does electronic invoicing become mandatory?
From September 1, 2026, every company must be able to receive electronic invoices. Large companies and mid-caps must also issue them by that date. SMEs and micro-enterprises have until September 1, 2027 for issuing.
Does electronic invoicing apply to small businesses?
Yes, from September 1, 2026 for receiving, regardless of size. Only the issuing obligation is pushed to 2027 for the smallest structures.
How do you calculate a late payment penalty?
Apply the current ECB refinancing rate plus 10 points, converted to a daily rate, multiplied by the number of days late between the due date and the actual payment date.
