Payment delays: SMEs are the big winners

Long considered one of the main factors weakening Moroccan businesses, late payments continue to weigh heavily on the cash flow of very small enterprises (TPEs).

However, Inforisk’s 2026 study on the impact of Law 69-21 shows a significant improvement in payment behaviour, with a marked decrease in customer payment delays for very small enterprises. Beyond the figures, this trend reflects a gradual transformation in financial practices and inter-company discipline in Morocco.

Each year, nearly 15,000 businesses become insolvent in Morocco, a situation largely driven by cash flow pressures and excessive payment delays. However, payment terms are not necessarily an economic problem in themselves.

In practice, they often reflect commercial flexibility granted by a supplier to a client, as part of a strategy to maintain loyalty or ensure continuity in business relationships.

Specialists generally consider a maximum payment period of 120 days to be broadly manageable for businesses, without automatically creating a risk of closure. The real problem lies elsewhere: in late payments.

It is this excessive overrun of agreed timeframes that weakens companies’ cash flow and today constitutes one of the main causes of business failure, particularly among very small enterprises.

Indeed, the legal framework introduced by Law 69-21 does not penalise payment terms themselves, but rather delays exceeding the legal threshold of 120 days. The distinction lies precisely here—and it is no coincidence that TPEs appear to be the most exposed.

They represent the most vulnerable segment of Morocco’s economic fabric. Their limited cash reserves, sometimes restricted access to financing, and low resilience make them especially sensitive to financial pressures.

In this context, any economic policy aimed at streamlining payments between companies indirectly acts as a protective measure for the national business environment.

The study conducted by Inforisk, based on a sample of 25,392 companies—85% TPEs, 13% SMEs, and 2% large firms—highlights the first encouraging results.

Financial discipline

A year and a half after the implementation of Law 69-21, payment delays in Morocco have improved significantly. Overall client payment times fell from 172 days in 2023 to 150 days in 2024, a reduction of 22 days.

The main beneficiaries of this trend are very small enterprises. Their customer payment periods decreased by 32 days, from 199 days in 2023 to 167 days in 2024. At the same time, their supplier payment periods also declined, from 107 to 94 days.

This improvement illustrates what Inforisk describes as a “spillover effect.” Initially applied to large companies and gradually extended to SMEs, the law has ultimately had indirect effects on TPEs. Companies forced to shorten their own payment periods have mechanically passed on this financial discipline throughout their supply chains.

This dynamic is particularly important in an economy where TPEs make up the majority of the entrepreneurial fabric and are the most exposed to liquidity pressures.

Sectoral analysis also reveals significant disparities. Companies whose client base is mainly composed of TPEs tend to experience longer payment delays, due to weaker financial capacity and lower bargaining power.

Conversely, firms working primarily with large organisations generally benefit from shorter payment terms. Sectoral business models also play a decisive role.

Hospitality and catering mainly operate on immediate or advance payments, limiting late payment issues. By contrast, sectors such as construction (BTP) and certain services remain structurally exposed to longer payment cycles.

Structural fragility

Another reality is the considerable weight of inter-company credit in financing the Moroccan economy.

In 2024, private inter-company credit reached 368 billion dirhams. Despite a slight decrease compared to 2019 (-10%), it remains higher than bank credit granted to private non-financial companies. This reflects a structural reality.

Many Moroccan businesses continue to finance themselves indirectly through their suppliers. In other words, corporate cash flow still relies heavily on trade credit rather than traditional bank financing channels.

The report nevertheless notes a positive evolution in behaviour. In 2024, 82% of companies in the sample complied with the legal framework set by Law 69-21, compared to 77% in 2023.

This improvement shows that when a regulatory framework—potentially punitive—is introduced, companies gradually adopt more cautious management practices in their relationships with business partners.

An international benchmark presented in the study offers an interesting insight.

With an on-time payment rate of 82%, Morocco now ranks among the better-performing countries globally, ahead of several major economies such as the United States and China.

However, this result conceals an important paradox: Morocco is also among the countries where the proportion of payment delays exceeding 90 days remains high. This contrast reveals that, despite overall improvements, some companies continue to concentrate particularly heavy delays that can seriously weaken their economic partners.

Law 69-21 is gradually producing tangible effects on the financial discipline of Moroccan businesses, particularly benefiting very small enterprises. However, beyond payment delays, the broader issue of the structural resilience of Morocco’s business fabric remains.

While the regulatory framework improves behaviour, it does not eliminate underlying vulnerabilities related to cash flow, dependence on supplier credit, or imbalances in bargaining power between companies.

In other words, reducing late payments is an important step forward—but it will only have lasting effects if accompanied by deeper improvements in the financial capacity and economic strength of Morocco’s very small enterprises.