Statutory payment terms: a mandatory rule
Objective: Know the maximum payment terms imposed by law, the penalties incurred, and the sector-specific constraints that must be strictly observed.
Article L441-10 of the French Commercial Code is one of the most important provisions in procurement. It is a mandatory public policy rule: it cannot be contractually overridden to the detriment of the creditor (the supplier).
Legal sources
- Art. L441-10 C. com. - Inter-company payment terms
- Art. L441-16 C. com. - Administrative sanctions (DGCCRF fines)
- DGCCRF - Practical guide - Payment terms between businesses
⏱️ General rule:
OR
Maximum 45 days end of month from the date of invoice issuance
Late payment penalties
Minimum rate: 3x the statutory interest rate in force
Apply automatically, without formal notice
Fixed recovery indemnity
€40 per unpaid invoice for recovery costs
Automatically due from the first day of late payment
DGCCRF sanctions
Up to €75,000 for natural persons
Up to €2M for legal entities (doubled if repeated within 2 years: €150,000 / €4M) — Art. L441-16 French Commercial Code
Practical case - Concrete impact of non-compliance
A buyer negotiates a 90-day payment term in their MSA with an SME supplier. This clause is void as it contravenes Article L441-10 (maximum 60 days).
- ❌ The supplier can retroactively claim late payment penalties + €40/invoice
- ❌ The DGCCRF can impose an administrative fine on the buyer
- ✅ The solution: comply with the 60-day legal maximum and use early payment discounts to encourage prompt payment
⚠️ Sectors with stricter requirements
Certain sectors are subject to shorter derogatory payment terms than the general regime:
- 🛒 Food retail - EGALIM Law (No. 2018-938) and EGALIM 2 (No. 2021-1357): For perishable food products, the deadline is reduced to 30 days after the end of the delivery decade (approximately 40 days max). For livestock and fresh meat: 20 days after delivery. The aim is to protect agricultural producers and food industry SMEs.
- 🚚 Transport: 30 days from the date of invoice issuance (Art. L441-10 II C. com.).
- 🏗️ Construction subcontracting: Payment within 30 days of receipt of the invoice by the project owner.
As a buyer, systematically check whether your sector or your supplier's sector is subject to stricter derogatory rules.
"Unless otherwise agreed, invoices are payable within sixty (60) days from the invoice date, in accordance with Article L441-10 of the French Commercial Code. In the event of late payment, late payment penalties shall apply automatically at a rate of three (3) times the statutory interest rate in force, plus a fixed recovery indemnity of forty (40) euros per unpaid invoice."