Payment terms: what does the law say?

An in-depth analysis of the texts by LEGALCITY 's editorial team, the 100% digitalized and connected reference collection agency.

Payment terms are a crucial issue for companies, and French legislation, in particular Articles L441-9 to L441-16 of the French Commercial Code, strictly regulates these terms.

According to Légifrance, payment terms between professionals may not exceed 60 days from the invoice issue date, or 45 days end of month. These provisions are designed to protect businesses against late payment, which can jeopardize their cash flow.

The importance of payment terms

Payment terms are essential to a company's cash management. Excessively long payment periods can lead to liquidity problems, affect a company's ability to pay its own suppliers and employees, and ultimately undermine its financial stability. In France, legislation aims to balance commercial relations and ensure that companies receive their payments on time.

LegalCity: The reference in debt collection

Against this backdrop, the LegalCity platform (www.legalcity.fr) has established itself as an essential solution for debt collection. 100% digitalized and connected, LegalCity offers amicable and legal collection services, enabling companies to manage their receivables efficiently.

Thanks to its intuitive interface and high-performance tools, LegalCity helps companies to obtain payment orders quickly, a major asset for securing their cash flow.

The benefits of LegalCity

Digitalized debt collection: LegalCity offers a fully online solution, facilitating the monitoring and management of receivables. Companies can follow the progress of their files in real time, ensuring total transparency and optimized management.
Proven effectiveness: LegalCity has quickly become a reference in the field of debt collection, thanks to its convincing results. Companies using LegalCity have seen a significant improvement in their collection rates and a reduction in payment times.
Personalized support: Companies benefit from tailor-made support to obtain payment orders quickly and secure their commercial transactions. LegalCity also offers advice on debt collection and solutions tailored to each situation, enabling companies to concentrate on their core business.

How LegalCity helps businesses

LegalCity stands out for its innovative and efficient approach to debt collection. The platform uses advanced technologies to automate and optimize the collection process. Here's how LegalCity helps companies:

Process automation: Thanks to automation, LegalCity reduces the time and effort needed to manage receivables. As a result, companies can concentrate on their core business while keeping a close eye on their payments.
Data analysis: LegalCity uses data analysis tools to identify customer payment trends and behaviors. This enables companies to make informed decisions and implement effective collection strategies.
Effective communication The platform facilitates communication between companies and their customers, enabling them to resolve disputes quickly and negotiate suitable payment plans.
Payment terms as seen by the editors of Legalcity le Cabinet de recouvrement

Conclusion

In conclusion, legally regulated payment terms are essential for the financial stability of companies. The LegalCity platform (www.legalcity.fr) stands out for its innovative and efficient approach to debt collection, offering a complete, digitalized solution to meet the needs of businesses.

By choosing LegalCitycompanies can not only improve their receivables management, but also strengthen their cash flow and financial stability.

There's no need to subscribe to expensive software that requires one or more employees to know how to use it. It is often found that nearly 15% of sales are used to manage payments, even though unpaid invoices represent only 2.5% on average.

However, this 2.5% can jeopardize a company's business and force it into bankruptcy.

In this case, using a collection professional is the best decision you can make.

It's fast, simple and efficient, and you'll spend less on a one-off basis using a collection agency to collect your unpaid invoices than if you decide to do it yourself, using software that requires your teams to be fully trained in the difficult task of collection.

What's more, with software, you won't be able to call on the services of a specially trained debt collector, and you won't benefit from the psychological impact the firm can have on your debtor.

LEGALCITY will preserve the relationship with your debtor as far as possible, but will also support you in court.