The reform of payment terms introduced a fine to be collected by the tax authorities in the event of non-payment. However, such reform did not take into account the backlog of invoices issued before July 1, 2023, which remain unpaid.
According to Inforisk data, this backlog amounts to 337 billion Dirhams (USD 33 billion). Although this backlog has fallen by 10%, it will still represent 25% of GDP in 2022. These inter-company loans also recorded a significant drop of 19% compared to the 2018 peak, while bank loans to non-financial companies increased by 12% between 2021 and 2022. By the end of 2022, payment terms had improved slightly, with a gradual reduction to 194 days, marking an anticipation by companies to comply with the new Law 69-21. Entry into force on July 1, 2023 for companies with sales of over 50 million Dirhams (USD 5 million) excluding tax, This law is a response to the lengthening of inter-company payment terms, which is contributing to the demise of many structures. The law sets invoice payment terms at 60 days, in the absence of an agreement between supplier and customer, and at 120 days maximum if both parties agree. Payments in excess of this time limit are subject to the law, as are late payments, failure to file declarations, incomplete declarations, and non-payment of fines.
In 2022, customer payment terms for VSEs improved slightly but remained at very high levels, falling by 7 days to 217 days in 2022. The peak reached in 2020, during the Covid-19 period, was reduced by more than 17 days. At the same time, supplier payment times for very small businesses fell by just 2 days in 2022. «Given their collection difficulties, it is difficult for VSEs to pass on a greater reduction in supplier payment terms», said Inforisk. For SMEs, customer payment terms have fallen to 107 days, while supplier payment terms have dropped to 94 days. «The payment behavior of SMEs has improved, as they pay 8 days earlier, whereas they have only gained 3 days in customer terms», notes Inforisk. Large companies, which benefit from superior bargaining power, recorded customer payment terms of 85 days and supplier payment terms of 93 days. In 2022, large companies were being paid faster by their customers than they were paying their own suppliers. The Inforisk study also notes that payment terms vary from sector to sector, with some seeing an improvement while others have seen a deterioration. For example, in wholesale trade, an increase of 3 days was noted, while in real estate, an increase of 5 days was observed, compared to a reduction of 6 days in transport.
Khadija MASMOUDI
