Reconfinement, the door open to new unpaid bills for companies?

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The announcement has fallen: France is reconfine, for a period of four weeks. This reconfination is reminiscent of the first episode, aimed at containing COVID-19, which began in March 2020. This announcement makes many professionals cringe, especially in the restaurant, cultural and tourism sectors. Indeed, they are the first to be impacted and forced to cease all activity, until further notice. But in this environment of uncertainty, the reconfination is also of concern to companies in all sectors. The first containment in March had at the time penalized many businesses and caused bankruptcies. This handicap is mainly due to late payments, a vital source for a company.

Rubypayeur, the ally of companies in times of reconfination

Delays in payment are one of the factors that precipitate the financial difficulties of companies. A customer who does not pay, unfurable goods, are all financial revenues staggered. For a company, they are crucial. On the one hand, they cover fixed costs, such as rent, wages, etc. And also keep some cash. According to the Bank of France, payment deadlines cause the bankruptcy of about 1 in 4 companies in France. And while France is the country in Europe that has the highest number of start-ups… It could soon become the country with the most bankruptcies. This is an unfortunate finding, which tends to spread beyond the areas most affected by COVID-19. Thus, in times of reconfination, companies like Rubypayeur come to reach out to these companies in difficulty.

Since 2017, the company has been providing a “toolbox” to prevent unpaid debts, and to support companies that suffer from them. It implements procedures to recover small invoices, amounting to less than 3,000 euros, through debt collection. Until then, this type of service was only for large groups. But in this period of reconfination, TPE, SMEs, large groups, everyone knows these difficulties. Especially the self-employed, who have a much more variable volume of activity. The tariff offer is also more attractive. Indeed, Rubypayeur only charges its customer if successful, and deducts 5% of the amount of the bill recovered. An attractive amount when traditional players usually levy 15% to 20%. This service offers more flexibility, and allows companies to save their cash flow.

Recovery, a long process for an immediate need

Recovery is therefore a particularly important benefit for businesses. Starting a procedure in a reconfination situation is often a long time. However, companies need to recover the money they owed as quickly as possible in order to continue to operate. Rubypayeur works to put in place quick steps, and it works. In 8 out of 10 cases, the dispute is settled in less than 15 days. The company listens to its customers and does what is necessary to support them. This support allows you to continue an activity serenely, and to keep its cash flow. Thus, the reconfination will certainly be difficult, but the aid paid by the State,and the support of actors like Rubypayeur make it possible to pass the course.

Account debts bills
Unpaid debts are responsible for 25% of business bankruptcies in France.

A company that finds unpaid bills can also go to a judge or bailiff. When this happens, he has up to 2 years to go to court and collect his bill, if the debtor is a consumer. If it is a professional, a business, the time limit is extended to 5 years. The financial health of businesses is essential for the national economy to continue to function. It is for this reason that the conditions of reconfination are easing, in order to allow companies to continue their work. A regulated activity, to protect employees and customers…

Sources:

News Release – Rubypayeur: Independents and TPE take full brunt of unpaid debts – 28 October 2020

Ministry of Economy, Finance and Recovery – Amicable debt collection: the rules to know

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