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Cabinet ARC: Amicable and legal debt recovery

Cabinet ARC
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82% of debts recovered

Cabinet ARC,a debt collection firm, assists you with all cases ofunpaid invoices andlate payments that jeopardize your cash flow, as well as with the management of your accounts receivable.Get prompt payment of amounts owed by your debtorsand optimize your debt collection efforts with our innovative techniques.

The rating given by our clients for the quality of our services is 8.5/10

*Excluding PC

It is with deep sadness that we learned of his passing. We wish to pay tribute to him and sincerely thank him for all these years of close collaboration, trust, and professionalism that have marked our relationship. We will remember him as an upright, deeply human man whose trust and friendship meant a great deal.

We extend our most sincere condolences to his family and loved ones.

The Minister of the Economy, Finance, and Industrial, Energy, and Digital Sovereignty analyzes the results of the June 2026 “ Cabinet ARC ”–IFOP Barometer.

French companies continue to face an unprecedented lack of visibility: our 2026 “ Cabinet ARC ” Barometer—conducted by IFOP—shows that cash flow management remains a top concern for business leaders. Payment terms continue to lengthen, reaching a 12-year high. Kérine Tran, Managing Director of the “ Cabinet ARC ,” presents the key findings of the barometer.

Éric Lombard, guest on the “ Cabinet ARC ” in May 2025

Éric Lombard, Minister for Economy and Finance, was the guest speaker at our latest breakfast debate held on Thursday, May 15.

Hosted by Jean-Marc Sylvestre, the Minister discussed the core theme: How can we restore growth?

Éric Lombard discusses the increase in payment delays and late payments observed in France in 2025

On Thursday, May 15, 2025, Cabinet ARC had the pleasure of welcoming Éric Lombard, Minister of Economy, Finance and Industrial Sovereignty, to our breakfast debate hosted by Jean-Marc Sylvestre.

This was an opportunity for the Minister to discuss current economic affairs and the latest findings from the ARC/IFOP barometer.

Bruno Le Maire, Minister of Economy, Finance and Industrial and Digital Sovereignty, was our guest on Tuesday, October 24, 2023. During this breakfast debate hosted by Jean-Marc Sylvestre, the Minister notably addressed the question: How can we sustainably protect ourselves against inflation?

Bruno Le Maire, Minister of Economy, Finance and Industrial and Digital Sovereignty, was our guest in October 2022 focusing on the theme “How to protect ourselves against the crisis?” He specifically discussed our proposal regarding the scoring of payment terms.

Bruno Le Maire, Minister of the Economy, Finance, and Economic Recovery, was a guest on the webinar “ Cabinet ARC ,” which took place on Tuesday, October 20, 2020. Read his comments and analysis on the key findings of the “ Cabinet ARC ” survey regarding payment terms during the COVID-19 crisis.

The President of MEDEF was the guest at our breakfast debate on October 22, 2019, hosted by Jean-Marc Sylvestre on the theme: “How to strengthen French industry and prepare the 21st-century business? ”.

Discover the videos

On Tuesday, October 3, 2017, the “ Cabinet ARC ” hosted Bruno Le Maire, Minister of the Economy and Finance, for its breakfast forum titled “What Is the Outlook for Businesses in 2018?” The event provided Mr. Le Maire with an opportunity to comment on the results of the Cabinet ARC/IFOP survey and to make key announcements regarding the optimization of payment terms.

At a breakfast forum organized by the “ Cabinet ARC ” in October 2012, Michel Sapin, Minister of Finance, addressed the issue of the French economy’s prospects for recovery.

Pierre Gattaz was speaking on the issue of payment terms, which was raised during the presentation of the “ Cabinet ARC/IFOP Barometer” on November 18, 2015.

François Baroin, former Minister of the Economy and Finance, was the guest speaker at the “ Cabinet ARC ” breakfast forum in April 2013. He shared his insights on how to emerge from the economic crisis, focusing in particular on the three sources of public spending.

“ Cabinet ARC has recognized legal expertise and is highly adept at finding solutions.”

Learn about the main pillars of the economic policy advocated byBruno Le Maire, former Minister of the Economy and Finance and guest speaker at the breakfast forum hosted by the “ Cabinet ARC ” on October 3, 2017.

On Tuesday, November 18, 2015, the “ Cabinet ARC ” hostedFrançois Pérol, Chairman of the Executive Board of the BPCE Group, for its breakfast discussion titled“How to Convince Your Banker?” The event provided Mr. Pérol with an opportunity to comment on theresults of the annual “ Cabinet ARC ”/IFOP survey.

On Tuesday, November 19, 2013, the French Business Forum ( Cabinet ARC ) hosted Louis Gallois for its breakfast discussion titled “How Can We Regain Competitiveness?”

This meeting provided Mr. Gallois with an opportunity to comment on the results of the annual Cabinet ARC/IFOP survey on debt collection.

During his invitation to the breakfast debate, René Ricol, Credit Mediator and General Commissioner for Investment, stated: "The real challenge is to fight against this incredible urge to make money very quickly".

Hervé Novelli, former Secretary of State for Trade, Craft Industry, SMEs, Tourism, Services, and Consumer Affairs, shares his perspective on economic programs and the missing elements needed to boost the competitiveness of French companies.

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One of the tasks we assigned to the DGCCRF is to increase the monitoring of payment deadlines in order to penalize companies that do not play by the rules.

Éric Lombard
Minister of Economy, Finance and Industrial and Digital Sovereignty

We need to work on this idea of rating payment terms, which was suggested to me by the web Cabinet ARC.

Bruno Le Maire
Former Minister of Economy, Finance and Industrial and Digital Sovereignty

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EDF

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ACCOR Group

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The firm's key strengths in this context are its expertise. You can immediately tell that the firm's team members are extremely knowledgeable in their field…

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“But what really impressed me was the legal expertise of the firm Cabinet ARC , which knows how to follow the proper procedures, file the appropriate preliminary injunctions—as they explained—and ensure a quick return of funds.”

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The Minister of the Economy, Finance, and Industrial, Energy, and Digital Sovereignty analyzes the results of the June 2026 “ Cabinet ARC ”–IFOP Barometer. While our 2026 Barometer highlights an increase in payment terms to 18.9 days—a level not seen in twelve years—Roland Lescure offers...

French companies continue to face an unprecedented lack of visibility: our 2026 “ Cabinet ARC ” (IFOP) Barometer indicates that cash flow management remains a top concern for executives. Payment terms continue to lengthen, reaching a 12-year high, as companies await the impact of a few encouraging signs...

In response to the concerning increase in payment delays, the Minister of Economy is considering stricter penalties. He also acknowledges the public sector's difficulty in leading by example. Longer payment delays are worrying businesses, as shown by the latest ARC-Ifop barometer figures: 17.3 days late...

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Jean-Marc Sylvestre

Economic news as seen by Jean-Marc Sylvestre

Atlantico

Edition of March 31, 2026

War, yes. Crisis, no. And that is precisely the problem.

Published on March 31, 2026 by Jean-Marc Sylvestre

The markets are not panicking. They are absorbing the shocks. They are adapting. They keep moving forward. And yet... everything is becoming fragile. That is the real issue.

Stock markets, interest rates, oil, gold: every day, the signals become more confusing. Unclear, sometimes contradictory. But one thing is clear: the markets are not predicting a sudden crisis. They are anticipating something worse: a slow, sneaky, and lasting drift toward inflation. No crash. No collapse. Just permanent instability.

Since the beginning of the week, the message has been crystal clear: no imminent crisis, but a total loss of visibility... And that is where the danger begins. Because markets are not oracles. They do not predict anything. They react. And often, they get it wrong.

Recent history is unambiguous:

2008? The warning signs were there, but no one saw the scale of the disaster coming

2020? The markets plummeted… but that was after the COVID shock. They’d never seen anything like it before… In fact, the markets sense crises… They almost never anticipate them.

Even today, they tell a reassuring story:

  • no global recession
  • sluggish but positive growth
  • Inflation is falling… or so it seems

But behind this facade, everything is falling apart:

–Rates remain high: no one really believes things will return to normal.

-Oil Prices Soar: Geopolitics Sets the Pace

-Gold Holds Steady: Skepticism Sets In

-Stock prices are rising… as if nothing had happened

A world where everything is on the rise and everything is a cause for concern at the same time is not a stable world.

It is a world under pressure. The real signal is not in the figures. It lies in their inconsistency. The markets are divided between oil and stocks, bonds and interest rates. And when the markets disagree with one another, it is never a good sign.

So no, they do not see an imminent crisis. But they describe a system that has become unstable, dependent, and vulnerable.

Only two major risks could uproot everything:

  • a major mistake by central banks is possible.
  • or the unpredictability of a politician, which is always underestimated.

And the most worrying part? It will likely come from poorly advised politicians. After all, back in 2008 too, everything seemed under control, according to Goldman Sachs experts. To be serious, markets do not announce a crisis. They let it happen.

War, oil, inflation: could the real danger be a misstep by the ECB?

Published on March 31, 2026 by Jean-Marc Sylvestre

Faced with the looming energy shock, politicians are scrambling. They are promising quick responses to cushion rising prices. Meanwhile, the European Central Bank says it is ready to act. Its weapon: interest rates. Its reflex: to brake, at the risk of adding a new crisis to the existing one.

Christine Lagarde insists: the ECB will not remain idle if inflation takes hold. But everyone knows its only lever is to raise rates to slow down the economy—in other words, cooling down the engine just when it is running out of fuel. The risk is obvious: turning an oil shock into a recessionary shock.

Because current inflation is not standard inflation. It is imported. It stems from gas, oil, and geopolitical tensions. Just like during the war in Ukraine, central banks are facing price increases they cannot control. Neither the ECB, the Fed, nor the Bank of England can lower the price of a barrel.

However, they can break economic momentum. And that is the core of the problem.

The ECB's reasoning is well known: avoid contagion. Prevent energy price increases from spreading to wages and, ultimately, to all prices. Block the secondary effects.

In short: accept the initial shock, but prevent it from taking root permanently.

It is logical. It is even orthodox. It is what is taught at the Chicago School. But it is also dangerous. Because to curb this contagion, the ECB has only one tool: tightening credit conditions. If it believes inflation is getting out of hand, it will raise its rates—perhaps in the coming months.

The consequences are familiar and immediate:

  • credit becomes more expensive
  • households postpone their purchases
  • the real estate market stalls
  • businesses invest less
  • growth slows down.
  • And, at the end of the chain, inflation finally gives way.

But at what cost? The problem is that this tool is effective against demand-driven inflation. It is much less effective against supply-driven inflation linked to energy. In other words, the ECB is treating a problem it cannot truly solve. Today, it is trapped in a classic dilemma:

  • either it does nothing, running the risk of letting inflation take hold
  • or it takes action, running the risk of triggering a recession

In either case, the cost is high for the whole of Europe, which is already lagging behind in global competition.

For France, the situation is even more complex. Higher interest rates would immediately strain economic growth, the real estate sector, and public finances, while also creating social pressure. The 2026 and 2027 budgets would become unmanageable within an already fragile political climate.

Above all, no credible alternative seems to be emerging. When facing an energy supply shock, the response needs to be structural: produce more, invest, and secure supplies. It should not involve handing out financial aid or artificially lowering prices.

However, these policies aimed at supporting demand have already shown their limitations. They are expensive, increase deficits, and fail to address the root of the problem. We saw this after the pandemic and the conflict in Ukraine. The real blind spot remains energy. Without a clear strategy—particularly regarding nuclear power—Europe remains vulnerable to every market fluctuation. As a result, the European Central Bank finds itself on the front line by default.

Yet we must be clear: the central bank cannot lower the price of oil. It can only slow down the economy to prevent price increases from spreading further. And that is precisely the danger. Once again, the remedy could turn out to be more damaging than the disease itself.

Going against the advice of the Ministry of Finance, the Senate has just tightened penalties for late payments.

Published on March 1, 2026 by Jean-Marc Sylvestre

The new measure targets slow payers in the private sector, as well as the government and local authorities, which are very often the worst offenders. This sends a strong signal to the regional courts of audit, whose role should include monitoring the funding system.

The issue of payment delays affects everyone: from the small independent contractor struggling to get paid by a client for plumbing repairs, to the materials supplier forced to chase down payment from a heating company that is slow to settle its bills. Not to mention very large companies that delay payments to protect their cash flow, sometimes putting their subcontractors in serious difficulty and thereby increasing the risk of bankruptcy.

However, the problem goes beyond private businesses. The government and local authorities—including certain town halls that seem affected by this issue—are also involved. Business owners are often reluctant to speak out, fearing they might upset the mayor or the head of the local council and lose future business contracts.

It was debt collection professionals who sounded the alarm a few months ago. Cabinet ARC, one of the largest agencies in the market, discovered through a survey that more than half of small and medium-sized businesses (55% to be exact) were choosing not to bid on government contracts because they were not being paid on time—and sometimes they weren’t being paid at all. Large government agencies, particularly in the healthcare sector—hospitals in particular—are now setting records in this regard.

Yet it should be the government's responsibility to monitor payment practices, with the support of the regional courts of audit, which are theoretically tasked with ensuring that bills are paid correctly and on time. When it comes to hospitals, these courts turn a blind eye, protecting themselves by shielding administrative bodies. If a regional court of audit dares to cause trouble by sending a critical email to a hospital director, the mayor quickly pressures the regional prefect to ensure their own bills are paid. As a result, nothing changes, and service providers are left waiting months to receive their money...

In reality, despite what some might claim, the rules are sometimes viewed as unclear. There is a European directive (2011/7/EU) on combating late payments that sets common minimum rules for member states: a maximum of 30 days to settle an invoice following its receipt, provided no other timeline has been agreed upon. If a different deadline is included in the contract, it can vary but generally should not exceed 60 days, barring very specific exceptions deemed fair to the supplier.

For public authorities, the standard payment period is generally 30 days, which can be extended to 60 days in certain cases defined by national law. The European Commission has proposed new regulations to strengthen these standards—such as enforcing a 30-day limit for all payments and automating late-payment interest—but this text has not yet been finally adopted. Currently, if a payment is not made by the due date, the creditor can demand late-payment interest starting the day after the agreed deadline. The interest rate may be specified in the contract; otherwise, a legal default rate applies.

Across the European Union in early 2026, this rate typically ranges between 9% and 14% annually depending on the country (France: ~12.15%, Germany: ~10.27%, Hungary: ~14.5%). In addition to interest, creditors can claim a minimum fixed compensation fee for recovery costs (often €40 per invoice within the EU). In some countries, this amount may be higher or adjusted to match actual expenses incurred.

Beyond interest and recovery fees between businesses, certain countries—including France—impose administrative fines when legal payment deadlines are not respected. In France, failing to meet payment deadlines can expose the buyer to a fine of up to €75,000 for an individual and up to €2 million for a company or organization.

It is precisely these penalties that the Senate has just unanimously strengthened by raising the cap on fines, which could now reach up to 1% of revenue, compared to the current fixed cap of 2 million euros. “At the ‘ Cabinet ARC,’ we have long believed that this cap was not a strong enough deterrent (77% of companies surveyed in the latest Cabinet ARC/IFOP barometer supported this measure).”

For very large companies, the temptation has sometimes been to risk paying the fine rather than settling bills on time.

Another major development: public sector buyers—including government administrations, public companies, town halls, and local authorities—will be subject to the same rules. The timeline for calculating payment deadlines will now begin on the date the invoice is issued rather than the date it is received.

Finally, the legislation introduced by Olivier Rietmann and passed by the Senate increases penalties for delays and prohibits agreements to waive late-payment penalties, a practice that previously occurred in public procurement settlements.

Town halls are poor payers and struggle to explain why they pay their private suppliers so late and so poorly.

Published on February 12, 2026 by Jean-Marc Sylvestre

As municipal elections approach, a major blind spot is emerging in public debate: local governments pay poorly and often very late. This reality discourages small businesses, weakens the local economy, and raises serious questions about how towns are managed.

The municipal election campaign reminds voters that while their local council is already costly to run, more concerningly, town halls are extremely slow and unreliable when paying their suppliers. As a result, more than 45% of small private service providers refuse to bid on public tenders out of fear they will not be paid.

Many voters who venture to campaign rallies are stunned to learn, straight from their mayor, that the city government is generally a very poor payer. City hall pays very late—and very poorly. Denis Le Bossé, the founding president of the cabinet Arc, isn’t surprised by this. His job is to collect unpaid debts and implementmanagementsystems designed to streamline operations and promote financial optimization.

"Every year, we study financial behaviors and relationships between clients and suppliers through a survey that tracks how things change over time. Generally speaking, we know that during economic crises, payment deadlines tend to stretch out. We know that payment terms are often used as a flexible buffer, but we also know that this practice is harmful because it creates a domino effect. A client who fails to pay puts their supplier in difficulty, who in turn will struggle to meet their own payment obligations."

What we also know is that public institutions—towns, local councils, county departments, and regional authorities—are much worse at paying on time than private clients. Hospitals, for instance, have an abysmal track record and are among the worst payers. They consistently pay their service providers very late for essentials like catering, maintenance, and medications. State government departments are the only ones that have made significant progress and now behave almost normally... but town halls remain the main offenders. Many of them are heavily in debt, too.

In general, late payments are not a minor issue in France. They affect a large majority of businesses and have worsened in recent years. In 2025, 86% of French companies reported experiencing late payments from clients, a proportion that increases year after year. France is among the laggards in Europe: the average payment delay far exceeds typical European practices, standing at 49 to 50 days on average in 2025 (compared to around 32 days in Germany, for example).

This means many invoices are not settled within contractual or legal deadlines, placing considerable strain on the cash flow of businesses, particularly small and micro-enterprises.

The Bank of France and the Payment Delays Observatory estimate that the overall average delay was between 13.6 and 14.1 days in France for 2024-2025, remaining above the European average. In other words, beyond agreed payment terms (often 30 days), payments for a large share of invoices are delayed by at least two weeks on average. Contrary to popular belief, even large companies do not always pay on time: fewer than half meet agreed deadlines. Smaller structures are especially vulnerable; if their clients pay late, more than half believe it seriously threatens their cash flow. A significant portion of business failures is now linked to cash flow problems caused by these late payments.

However, the ultimate taboo subject is the public sector, which continues to set a poor example. Late payments by public authorities (the government, local councils, and hospitals) are on average higher than in the private sector, averaging around 15 days late in 2025. Certain facilities, particularly hospitals and decentralized state services, can experience severe delays exceeding 20 days—and sometimes lasting more than a year.

In the private sector, as shown by the ARC-IFOP barometer, payment delays are also significant, though slightly lower than the overall average: around 17.3 days on average, depending on industry and company size. Certain large private companies report average payment delays of over 20 days, particularly in sectors such as administrative services, information, and private healthcare.

In 2017, the Ministry of Economy and Finance introduced an electronic invoicing platform to digitize management and help reduce payment delays. However, the system the Ministry was so proud of did not work miracles. Results did not improve; in fact, they got worse.

Companies do not delay payments without reason. Some have negotiated longer payment terms than usual (nearly 50 days). Others face cash flow issues and try to protect their liquidity—which puts pressure on the cash flow of smaller businesses, leads to bankruptcies, and shifts funds toward large payers.

This is a major issue for the French economy, especially for small and medium-sized enterprises. But what brings this into focus during the municipal elections is that voters are realizing local governments are poor payers, and when they pay late, they harm the health of local businesses. A local construction contractor ends up caught in a bind by the town hall, leading to distrust and a refusal to take on municipal work.

This is all the more true because municipalities, like the central government, are heavily indebted. Unlike the central government, however, they are closely monitored by regulatory bodies such as regional prefectures and the Court of Auditors. Some very small towns have high debt per capita and top the rankings (such as Vaujany or Les Angles, with tens of thousands of euros per resident), but these are generally specific cases tied to particular investment projects.

Among the more populous cities:

  • Paris: very high total debt (nearly €10 billion), but a moderate average per resident.
  • Levallois-Perret: historically often the most indebted city per resident in mainland France.
  • Bagnolet and other towns in the inner Paris suburbs also rank very high on the list.

High debt does not always mean poor management. Some cities take on debt to finance major investment projects (infrastructure, schools, public facilities) that will pay off in the long run. Others may face historical constraints (heavy operational expenses, low self-financing capacity) that weigh on their accounts.

High debt does not necessarily lead to excessive payment delays, but clear explanations are lacking. The key is for the outgoing mayor to provide answers. Because if a local supplier is poorly paid, the taxpayer ultimately foots the bill... and taxpayers vote.

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Cabinet ARC and In Extenso: A Winning Partnership

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