B2B Payment Conditions in Morocco
Payment methods, legal deadlines and guarantee instruments · 2025 Guide
Payment methods
Bank wire transfer
The most commonly used payment method in Moroccan B2B transactions. Reliable, traceable, suitable for all amounts. Standard terms are 30, 60 or 90 days from invoice date or delivery.
Advantages
- Full traceability
- Accepted by all banks
- International via SWIFT
Drawbacks
- 1-3 business day processing time
- Banking fees on international transfers
Check
Still widely used in Morocco for deferred payments. A post-dated check represents a payment commitment, but Bank Al-Maghrib discourages excessive use. Beware of bounced checks — they constitute a criminal offense in Morocco.
Advantages
- Recognized payment document
- Legally binding
Drawbacks
- Risk of bounced check
- Clearing delays 2-5 days
Letter of Credit (LC)
Essential banking instrument for international transactions. The buyer's bank undertakes to pay the seller upon presentation of conforming documents. Used for significant Moroccan imports (equipment, raw materials).
Advantages
- Payment guarantee to seller
- Buyer protection (conforming documents required)
- Internationally recognized (UCP 600)
Drawbacks
- High cost (0.5-2% of amount)
- Documentary complexity
- Opening delays 3-7 days
Documentary collection (CAD)
The seller's bank forwards shipping documents to the buyer's bank against payment (documents against payment) or against acceptance of a draft (documents against acceptance). Less expensive than letter of credit but less secure.
Advantages
- Less expensive than LC
- Document control by banks
Drawbacks
- No bank payment guarantee
- Risk if buyer refuses documents
Open Account
The buyer receives goods and pays at the agreed due date (net 30, 60, 90 days). Common practice between trusted partners. Maximum risk for the seller but optimal for buyer's cash flow.
Advantages
- Maximum simplicity
- Favorable for buyer cash flow
- Strengthens business relationships
Drawbacks
- Maximum credit risk for seller
- Requires credit insurance or factoring
Advance payment
Partial or full payment before delivery. Typical for custom orders, rare material imports or relationships with foreign suppliers. Secures the supplier but exposes the buyer.
Advantages
- No credit risk for seller
- Enables production financing
Drawbacks
- Delivery risk for buyer
- Deteriorates buyer's cash flow
⚖️ Legal framework for payment terms
FAQ
What is the maximum legal payment deadline in Morocco?+
Law No. 49-16 on payment terms in Morocco sets a maximum deadline of 60 days from the date of receipt of goods or completion of services. This can be extended to 90 days by agreement between parties. Legal default interest applies automatically in case of delay.
How to calculate late payment interest in Morocco?+
Late payment interest is calculated based on Bank Al-Maghrib's benchmark rate plus 7 percentage points. It applies automatically the day after the due date, without prior notice. The seller can also claim a fixed compensation of 1,000 MAD for recovery costs.
Is the bill of exchange still used in Moroccan B2B payments?+
The bill of exchange (traite) is still used in Morocco, particularly in textile, construction and distribution sectors. It offers a solid legal basis and can be discounted at a bank. Bill of exchange discounting remains an accessible short-term financing solution for Moroccan SMEs.
What is factoring in Morocco?+
Factoring is a financing solution where a factoring company buys a business's receivables and immediately pays up to 90% of invoice amounts. Several Moroccan banks offer this service: Attijari Factoring, Maroc Factoring (BMCE), etc. Factoring is particularly suitable for exporting SMEs and subcontractors of large prime contractors.