As we step into 2025, Credit Managers face an increasingly turbulent landscape. The report from Altares reveals a record-breaking 67,830 business failures in France for 2024, with 18,709 collapses in the final quarter alone. While the pace of failures has slightly slowed down, the overall outlook remains worrying. For those in credit management, these numbers are not just statistics—they are direct indicators of rising payment defaults, insolvencies, and credit risks. What do they mean for you? How can you adapt your strategies to protect your account receivable management in this challenging environment?The Rise of Business Failures: A Credit Manager’s Nightmare
The +17% increase in business failures in 2024 compared to 2023 is a stark reminder that economic fragility still looms large. More concerning is the sharp rise in PME-ETI (mid-sized companies) failures, with a +30% jump. Sectors particularly at risk:
- Manufacturing (+75% failures)
- Wholesale Trade (+76%)
- Transport & Logistics (+59%)
The challenge ?
Many of these businesses are critical links in supply chains. A single collapse could trigger a domino effect of unpaid invoices and credit disruptions across multiple industries
The “Domino Effect” on Credit Risk
The report warns of a worrying trend: rising supplier defaults. In 2024 alone, businesses that failed had a combined revenue of €30 billion, leaving behind a trail of unpaid outstanding items. Among these:
- €2 billion owed to suppliers
- €1 billion in unpaid taxes & social charges
- €3 billion owed to financial institutions
Even if your customers seem financially stable today, their exposure to failing partners could put them at risk tomorrow.
Credit managers must look beyond the immediate solvency of their clients and assess the broader financial ecosystem they operate in.The Growing Role of Early Warning Signals
Amidst this turbulence, one positive sign from the report is that young businesses (under three years old) have shown resilience, with failures rising only by 5.5%—far lower than the market average. What does this tell us? Not all businesses are at equal risk. Some key indicators can help spot trouble before it happens:
- Delayed payments: The report highlights a worrying +1.5 day increase in average payment delays, reaching a near-record 14 days
- URSSAF pressure: The resumption of forced cash collection by URSSAF has pushed more businesses into insolvency
- Government loan repayments: €38.4 billion in COVID-related loans remain outstanding, with 4% of small businesses fearing they won’t be able to repay
For Credit Managers, tracking these indicators should become a priority when evaluating risk.
The Road Ahead: Actionable Steps for Credit Managers
While the overall business failure rate may stabilize, the risks remain high. The report suggests that 2024 could be a peak, but not a turning point. Given the weak 0.9% GDP growth forecast for 2025, the landscape will remain challenging. Here’s what Credit Managers can do:
Strengthen Customer Risk Monitoring – Leverage financial intelligence tools (like Intuiz+) to track customer solvency and detect early warning signs.
Reassess Credit Terms – For high-risk sectors (manufacturing, wholesale, transport), consider tightening credit limits or requiring stricter payment guarantees.
Diversify Customer Portfolios – Avoid over-reliance on a single sector or large clients that may be exposed to financial stress.
Stay Ahead of Legal Trends – With business rescue procedures increasing (+29.4%), knowing the latest legal options for receivable recovery is essential.
Conclusion: The Year of Proactive Credit Management
The Altares report is clear: risks in 2024 pose a major challenge for all businesses. Credit Management professionals must adopt a proactive approach—focusing on risk anticipation rather than reacting to payment defaults.
By staying vigilant, leveraging the right tools, and adjusting financing strategies, you can minimize losses and ensure your company’s financial stability in 2025. In a landscape where every unpaid invoice can have a significant impact, expertise in Credit Management has never been more valuable.
As 2025 unfolds, being proactive, data-driven, and adaptable will be key to staying ahead.
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