Bank of France publishes joint mediators’ report urging tougher late-payment sanctions and coordinated early support for struggling small firms

The Bank of France has published a report submitted to France’s minister responsible for trade, SMEs and the social and solidarity economy by the National Credit Mediator, Frédéric Visnovsky, and the Business Mediator, Pierre Pelouzet, setting out 16 recommendations to improve early detection and support for companies in difficulty and to ensure businesses are systematically informed about existing prevention tools. Based on fieldwork including 25 regional events, the report prioritises two areas. First, it calls for stronger sanctions against late payment to avoid worsening the finances of very small businesses and small and medium-sized enterprises, noting payment delays approaching 14 days at end-2024 and an estimated EUR 15 billion liquidity impact, and proposing an assessment of fines linked to a percentage of turnover rather than the current EUR 2 million cap. Second, it recommends better local coordination among public and private actors, including “territorial teams” and a “charter of trust” to improve referral pathways, alongside more proactive outreach so firms are alerted earlier by their partners. Other recommendations include more training and use of basic financial management tools, greater promotion of online diagnostics and a “manager’s toolbox”, a possible fund to help smaller firms pay for accountants’ advisory work, and requiring firms to be informed when a default declaration is made to the Bank of France. The minister indicated these priority axes will guide her action and called for rapid, practical implementation.