Management of Unpaid Debts

Abstract

The internationalisation of contractual and business relations implies that contractors and subsidiaries are no longer negotiating and doing business solely in their country of origin but that they have bases abroad, sometimes in very different jurisdiction. Consequently, the financial flows come from very different countries. The difficulty arises when payment incidents occur due to a defaulting foreign partner. No company is spared from contractor’s default. The legal department must be able to set up alerts, monitor and identify mechanisms with the financial department to control and obtain payment. Meanwhile, the decision has to be made on how to deal with new orders or services requested by the contractor, that will increase his debt.