Payment deadlines in Morocco: progress on paper, pressure on small firms

This update focuses on Morocco payment deadlines reform. Morocco’s recent reform of payment deadlines is finally showing up in company accounts, easing overall cash flow pressure but leaving very small firms exposed. For Moroccans living abroad who support a family business or plan to launch a project back home, the latest figures offer a clearer view of the ground reality.

Morocco payment deadlines reform starts to deliver in 2024

According to the latest report by the national observatory monitoring payment behaviour, the Morocco payment deadlines reform is having measurable effects. In 2024, based on a sample of around 92,000 companies, the average customer payment period dropped to 98 days of turnover, 27 days less than in 2023.

Over the same period, the average time taken to pay suppliers fell by 15 days, reaching 70 days of purchases. The commercial balance, which measures the gap between customer and supplier payment times and reflects how far a company is financing its partners, narrowed to 43 days, down from 57 days a year earlier.

These numbers confirm a clear downward trend: companies get paid faster and settle their bills a bit sooner, easing the overall strain on working capital across the productive fabric.

Smallest businesses still face structural asymmetry

Behind these national averages, however, the report points to a persistent asymmetry between different categories of firms. Very small enterprises remain the most exposed.

In 2024, very small companies posted customer payment periods close to 100 days of turnover. They nonetheless made one of the sharpest adjustments, cutting delays by around 30 days compared with 2023.

Despite this effort, their relative position is unchanged: very small businesses are still the ones waiting the longest to get paid. Their commercial balance remains high, at around 47 days, compared with roughly 36 days for small and medium-sized companies.

In practice, these tiny structures continue to finance their clients indirectly, shouldering a much heavier cash-flow gap than larger players. A lower national average does not mean every company has the same bargaining power when negotiating payment terms.

Why this matters for Moroccans abroad investing back home

For Moroccans abroad who support a family shop, consider taking over an existing business or plan to set up a company in Morocco, this reform is more than a technical measure.

The Morocco payment deadlines reform is improving the overall business environment, but cash-flow risk remains significant for very small firms, especially in sectors where large buyers still impose long payment periods.

Before committing funds, it becomes even more important to:

• identify key clients and their actual payment practices;
• build conservative cash-flow scenarios with safety margins;
• secure enough working capital to cover several months of operations;
• get informed about mediation tools and remedies in case of chronic delays.

For Moroccans returning with an entrepreneurial project, these figures highlight how vulnerable small structures remain in commercial relationships. Early support from a local accountant and legal adviser can help secure contracts, frame payment conditions and reduce exposure to late payments.

Reform to watch closely, especially for very small firms

The this case clearly marks a step forward for the country’s business climate. Indicators show shorter delays, moving the ecosystem toward healthier practices.

Yet the gap between large and small firms persists. For Moroccans abroad investing in Morocco, this reality should factor into risk assessment and return expectations, alongside tax rules, access to land and financing conditions.

While further regulatory steps are expected, caution remains essential, particularly for very small or young companies dependent on a handful of large customers. Before launching a project in Morocco, it is advisable to complement this picture with up-to-date information from official portals and specialised advisers on the ground.

For more context, readers can follow Canal212 news for Moroccans abroad.

For official updates, readers can check the relevant official source.