Brussels and Flemish regions are bad payers, shows report

Invoices between the Belgian government and companies are usually paid correctly on time, but Flemish and Brussels regions are the bad students in the classroom. This is the conclusion from a report by trade information office Graydon in collaboration with employers' organization Unizo.

The differences are great in terms of regions. The German-speaking and Walloon communities pay almost perfectly. The Brussels ministries (6.31 out of 10) and the Flemish Community (5.28 out of 10) are bad payers.

The report also shows that local authorities still have work to do. The Flemish central cities of Bruges, Ostend and Mechelen, in particular, score very poorly.

"There are major differences in the payment behavior of the various authorities", explains Danny Van Assche, CEO of Unizo. He points out that after a number of weak years with many fluctuations, the federal government is back at a higher, more stable level.

At the end of 2021, 74% of the invoices sent were paid within the agreed term. Significant delays are mainly attributable to the government departments of Finance, Social Security and Mobility.

From the second quarter of 2021, for the first time since the start of Graydon's measurements, more than 70% of the invoices that Belgian companies send to other companies or to the government are systematically paid within the agreed periods.

“Yet at the end of 2021, one in ten invoices were still being honored at least 90 days after the due date and in some cases not honored at all,” reveals Eric Van den Broele, director of Research and Development of Graydon.

Law protection for entrepreneurs

Payment terms from the government and from companies to other companies have been tightened since February 1 this year. The legal text stipulates that companies cannot agree on payment terms longer than 60 days. This should protect companies against major players.

“The high energy and raw material prices, together with the high wage costs, put pressure on entrepreneurs," says Van Assche. "During the corona crisis, the governments made extra efforts to pay their invoices on time and have proven that it is possible. Under the current circumstances, we ask that you continue to pay attention to this. More than ever, SMEs need smooth payments."

(HDB) (VIV)

© Belga Photo (Patrick Lefevre) Building site in Ostend, Flanders