Debt Collection
Our legal professionals are available to help you choose the most appropriate collection procedure in the event of late payment by one of your clients, while maintaining a good business relationship with that client.
Be proactive and take action as soon as payment delays begin to occur
Unpaid receivables and late payments are unexpected events that can undermine your company’s cash flow. Our “ Cabinet ARC/Ifop Barometer” on debt collection and payment terms reveals that many of the disputes raised by debtors are unfounded and are intended to evade legal payment obligations. While maintaining good customer relationships, it is therefore important to anticipate and act as quickly as possible when faced with situations that could jeopardize your company’s financial health.
It is in this context that the “ Cabinet ARC ” supports all of its clients on a daily basis toreduce payment lead times, optimizecollections, andlimit the risk of unpaid invoices by taking action beforethe collection phasebeginsand by placing accounts receivable management at the heart of its business.
Out-of-court debt collection
Maintaining Customer Relationships: A Key Challenge
Maintaining customer relationships is essential for any business. That is why the attorneys at Cabinet ARC —who are well-versed in negotiation techniques— prioritize amicable debt collection efforts, allowing you to maximize the recovery of your receivables while maintaining balanced business relationships with your customers. On this topic, read the insights of Sophie Milliot, Chief Administrative and Financial Officer at IMS Health France.
Our legal professionals initiate an out-of-court settlement process as soon as we receive your case file, in addition to any internal actions that may be underway. If necessary, we conduct a thorough credit investigation of your debtor to determine the most appropriate strategy for collecting your debt.
A single point of contact for the entire out-of-court collection process
At Cabinet ARC, a single point of contact manages your case throughout the entire collection process. This person monitors the impact of follow-ups regarding unpaid invoices on your customers while adjusting the sequence, content, and format of communications at each stage.
The attorneys at Cabinet ARC prioritize “tailored debt collection” that takes into account the specific characteristics of your industry. We make sure to systematically adapt our approach to each debt collection case we handle.
Our business lawyers are well-versed in negotiation techniques. They develop and implement a customized debt collection strategy to ensure that, starting with the amicable phase, cash flows back into your company’s cash flow quickly.
If the out-of-court collection process is unsuccessful, our teams can quickly recommend the best course of action: either discontinue all efforts or initiate legal collection proceedings.
Judicial Debt Collection: Compulsory Collection of the Debt.
If the out-of-court collection process fails, it may be advisable to move on to the judicial collection phase and thus initiate legal proceedings against your debtor.
Judicial debt collection, also known as “litigation,” involves bringing the matter before the appropriate court to obtain a judgment against the delinquent payer once all amicable reminders and attempts at negotiation have failed.
A highly structured process
During this technical and highly structured phase, the attorneys at Cabinet ARC will guide you through every step of the process, down to the smallest details.
There are several judicial collection procedures for unpaid debts, including summary proceedings and proceedings on the merits.
To optimize the judicial collection of debts, the Cabinet ARC has also developed innovative techniques that combine the efforts of its Business Investigators Department with specific legal action:
the procedure for the precautionary seizure of claims, which makes your debtor’s attachable assets unavailable before legal proceedings have been initiated against them.
The Substantive Hearing
A trial on the merits is a legal proceeding in which the judge will rule on the merits of the case and on all aspects of the proceedings. This proceeding is initiated whenever there are serious disputes regarding the amount of the debt to be collected.
Once the court has ruled against your debtor, the legal professionals at Cabinet ARC will promptly initiate enforcement of the judgment through our network of qualified judicial officers.
The Summons for a Preliminary Hearing
As for a summons for summary judgment, it can be issued as long as no serious objections have been raised. This procedure allows you to quickly obtain a judgment against your debtor.
Each of these legal debt collection procedures must comply with specific rules. Our legal experts specializing in debt collection will assist you in implementing the strategy best suited to your situation and ensure personalized, transparent support throughout the legal process.
The technique of provisional seizure: a formidable weapon
To optimize the judicial collection of debts,the Cabinet ARC has also developed innovative techniques that combine the efforts of its Business Investigations Department with specific legal action: theprocedure for the provisional attachmentof claims, which makes your debtor’s attachable assets unavailable before legal proceedings have been initiated against them.
Our corporate investigations department first identifies attachable assets at various levels, such as companies’ off-the-books bank accounts, VAT credits, research tax credits, the factor’s security deposit, and even receivables that your debtor holds against its own customers.
The provisional attachment procedure begins with the filing of a petition with the competent judge. Once authorization to carry out the attachment has been obtained, our authorized bailiffs take steps to freeze the funds intended for the debtor.
By making the assets unavailable in advance, we discourage the debtor from initiating lengthy and costly legal proceedings in an effort to deter the creditor.
International Debt Collection
A global network of partners
Cabinet ARC ’s expertise ininternational debt collectionis based on our legal professionals’ ability to constantly adapt to the specific commercial and legal conditions of each country.
For more than 20 years, Cabinet ARC has been building and expanding acomprehensive network of high-performing partnerslocated around the world and selected according to very strict criteria.
Our teams’in-depth knowledge of languages, laws, and local practicesenables them to determine themost appropriate procedure to optimize the collectionof your international receivables.
An unpaid bill: the meaning varies from country to country
An unpaid bill can have different meanings depending on your debtor's country of origin.
While in Germanic countries or Japan, an outstanding debt will quickly reveal a solvency issue—since the payment of amounts owed is a matter of compliance with rules or even a matter of honor—in countries such as Brazil, India, or China, it may instead indicate a dispute over the service provided.
The weight of local traditions can compound the administrative and legal burdens involved in international debt collection. It is therefore important to understand and adapt to these traditions in order to avoid alienating your business partner and to maintain a good business relationship with them.
Support from local partners of the “ Cabinet ARC ” is therefore essentialto maximize the chances of a favorable outcome and ensure that cash flows back into your business.
