The prospects are bleak in the private sector. Political instability is the main fear of companies and only 10% expect growth within six months, according to a study published this Wednesday by the company ARC, which specializes in debt collection.
75% of them cited instability as their first fear, before social problems (67%) and increasing tax pressures (55%). Additionally, 89% think that France’s economic situation will get worse within six months. “The company considers that they are hostages of the political situation,” believes the president of the ARC company, Denis Le Bossé. When in doubt, “they limit themselves to the necessary investments, and hire less.”
Extension of payment deadline
Of the 200 companies with at least 50 employees surveyed in October, 72% predicted stability in their activity over the next six months (-2 points compared to April), 18% anticipated a decline (+4) and only 10% predicted growth (-2 points since April, -8 points in a year, and -3 points compared to September 2020, during the Covid-19 crisis). Nearly all (97%) expect an increase in their clients’ bankruptcy filings.
According to the Banque de France, there were 68,227 business failures from October 2024 to September 2025. ARC highlighted that 66% of managers surveyed believed that they did not receive adequate legal support to handle their companies’ financial difficulties. Additionally, 75% say they compensate for their cash flow needs by extending payment terms to their suppliers, well before using a bank overdraft (54%).
“Large companies are worse payers” than other companies, the Banque de France stressed in October. “A real balance of power is created between companies, weakening the weakest parties,” regrets Denis Le Bossé. In this context, 77% of companies want a fine proportional to the company’s late turnover, compared to the current maximum limit of 2 million euros. LR Senator Olivier Rietmann submitted a bill on this matter at the end of October, and proposed fines of up to 1% of global turnover.
