Multi-Sector Platform Against Late Payments (PMcM) is urging listed companies to respond promptly to forthcoming European rules that would cap payment terms at 30 days. The regulation could be debated by the European Parliament on April 22, with final adoption possible by the Council of Europe and automatic entry into force across all EU member states. The rules would set a clear framework for when payments are due and impose sanctions for non-compliance with the 30-day limit.
The late payment interest rate would be determined by the official coin price plus eight points, a figure that PMcM president Antoni Cañete said would be set at 12.5% going forward. The organization is calling on large, publicly traded companies to review their terms, as the platform represents a substantial pool of late payments affecting small and medium-sized enterprises (SMEs). The call to action emphasizes updating payment terms to align with the upcoming standards.
Before a Madrid forum where the new rules would be discussed, the head of PMcM urged the Spanish Government to ensure full compliance with the forthcoming regulations. Cañete also criticized the stalled progress on two measures tied to the Create and Grow Act aimed at curbing late payments: the Establishment of an Observatory of Guilt and the approval of the State SME Council. Representatives from associations specializing in late payment issues will participate in the discussions.
Collection in 61 days, payment in 120 days
Statistics from the Central Balance Sheet data indicate that listed companies in Spain take an average of 61 days to collect funds and about 120 days to pay, effectively doubling the 60-day period that was historically common and far exceeding the 30 days anticipated by European rules. PMcM notes that this practice harms suppliers, especially SMEs and self-employed individuals. Cañete argues that large firms hoard liquidity instead of distributing it to suppliers, using their market position to finance themselves at the expense of smaller partners.
Additionally, PMcM highlighted concerns about access to information on subsidies. The latest 2023 report from the Transparency and Good Governance Council shows that only 34.7% of the evaluated organizations receiving subsidies comply with transparency obligations, raising questions about governance and accountability in the distribution of public aid.
Default by economic sectors
Data from Central Balance Sheet statistics allows for sector-specific analysis of payment behaviors. The information and communications sector, despite recording the longest invoice delays with an average payment maturity of 337 days in the first half of 2022, still collects its invoices in about 68 days. The sectoral picture reveals further variation: construction and real estate record a 176-day payment term but collect in 99 days; trade and accommodation show 132 days for payment with 24 days to collect; while industry and energy, though paying in 72 days, collect in around 50 days. These patterns illustrate significant differences across industries and highlight where attention is most needed to improve cash flow and supplier relationships.