Reminder vs. debt recovery

Business leaders often confuse sending reminders to clients with initiating debt recovery. Reminder efforts aim to maintain the business relationship, while debt recovery involves legal procedures that can have serious consequences.

Statute of limitations and formal demands

Many business leaders mistakenly believe that sending a formal demand letter or email resets the statute of limitations on a debt. However, under the Commercial Code, a debt between merchants expires after five years, and only specific events can pause the clock.

Bankruptcy and legal procedures

When a client's bankruptcy is declared, individual lawsuits are suspended, and creditors must declare their claims within two months. Creditors who have already taken enforcement actions may have a different position, but without a legal title, recovery agencies cannot seize assets.

Legal protections for debtors

Debtors are aware that recovery agencies cannot seize assets without an enforcement title. Threats of seizure without a court decision are ineffective. Additionally, any costs incurred by the creditor without a legal title remain their responsibility.

Late payment penalties and automatic protections

Late payment penalties for businesses start accruing from the day after the due date, regardless of reminders. A flat-rate indemnity of 40 euros per invoice is also due by right, but few companies claim these penalties, which can affect negotiations.

Amicable debt resolution

Most unpaid invoices between businesses are resolved without legal action, with 82% of debt recovery cases handled amicably in a lawyer's office. An effective amicable resolution follows three rules: obtaining a written acknowledgment, locking in a payment schedule, and setting an end date for negotiations.

Legal deadlines and new procedures

Recent legal changes have shortened the time creditors have to act, with an order for payment now needing to be served within three months instead of six. A new procedure, introduced in April 2026, allows for the recovery of uncontested commercial debts through judicial officers, with a one-month deadline to pay or contest.

Conclusion and legal guidance

Businesses must treat unpaid invoices as assets that lose value over time and have an expiration date. Legal experts emphasize the importance of understanding the rules and acting promptly to recover debts.