Payment terms between businesses are a central issue for the cash flow of Moroccan SMEs. A customer who pays late means extra financing needs, strained relations with suppliers and sometimes lasting fragility. Lawmakers have strengthened the applicable framework, notably with Law No. 69-21, which amended the rules of the Commercial Code on payment terms and introduced a reporting and penalty regime.
Here are the principles you need to know and the best practices to put in place to secure both your receipts and your payments.
Key principles
The legal framework rests on a simple idea: payment terms between businesses must be regulated, agreed in advance and respected. In practice:
- a default payment term applies when the parties have not set one in their contract;
- the term agreed between the parties is capped by law: it cannot be extended at will;
- the starting point of the term (date of delivery, completion of the service or invoice, depending on the case) must be clearly identified;
- late payment exposes the debtor to penalties and reporting obligations.
The exact durations, the method for calculating penalties and the revenue thresholds concerned are set by the legislation and its implementing measures. They may change: before making any decision, have your situation checked by your chartered accountant.
Reporting obligations
The reform introduced a transparency requirement: depending on their size, businesses must periodically report to the tax authority information on invoices paid late or left unpaid, together with the corresponding fines.
This obligation requires rigorous supplier and customer accounting: the date of each invoice, the contractual due date and the actual payment date. Without this data, it is impossible to produce a reliable return.
What this means for your organisation
- payment terms must be clearly stated in your contracts, quotes and invoices;
- each supplier invoice must be recorded with its date of receipt and due date;
- payment monitoring must make it possible to identify delays immediately;
- returns must be prepared and filed on time.
Best practices as a supplier: getting paid on time
The best way to reduce late customer payments is still prevention:
- formalise payment terms from the quote or order stage;
- invoice without delay on delivery or completion of the service, with all the mandatory information;
- keep an aged balance of your trade receivables and chase payment as soon as the due date has passed;
- adapt the terms (deposit, payment in instalments) for higher-risk customers.
Best practices as a customer: paying by the rules
Meeting your own due dates protects your supplier relationships and spares you penalties and negative reports. A payment schedule, reconciled with your cash flow forecast, lets you anticipate pressure points rather than suffer them.
In the event of temporary difficulties, it is better to negotiate a written agreement with the supplier before the due date, within the limits set by law, than to let an invoice slip past its deadline.
The role of your chartered accountant
Your chartered accountant helps you set up monitoring tools (aged balances, payment schedules), make the dates recorded in your accounts reliable and prepare the required returns. They can also analyse the impact of customer and supplier payment terms on your working capital requirement and suggest ways to improve it.
At LAYODIS, this monitoring is part of our accounting services and our tax support.
In summary
Payment terms are no longer just a matter of commercial relations: they are a legal obligation, backed by reporting requirements and penalties. Clear terms, up-to-date accounts and regular monitoring of due dates are, in most cases, enough to stay compliant while protecting your cash flow.
Would you like to review your payment terms? Talk to our team.
