What are the measures for preventing business difficulties?

In fact, there are devices that prevent the most common difficulties in business. They are, rightly, called “measures to prevent difficulties”. Here is what you need to know.

What are the measures to prevent difficulties?

We distinguish the sends to from conciliation procedure. The two procedures are relatively similar: the court appoints a person outside the company, whose mission is to settle disputes and find an amicable agreement between the players (company, creditors and partners).

The sends to is open to all companies, whatever their activity and legal form. The two conditions for requesting the appointment of an ad hoc representative are that the company:

• Experiences financial difficulties (late payment, default by a customer, etc.) or blocking situations (conflict between partners …);
• Is not in a state of suspension of payments.

The conciliation procedure is also open to any type of business except those carrying out an agricultural activity (which benefit from a special mechanism). To request the opening, the company:

• Must meet existing or foreseeable difficulties, which can be of a legal nature (conflict between partners), economic (loss of a contract) or financial (default of a client).
• Must not be in a state of suspension of payments (or less than 45 days).

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Why should preventive measures be used?

Difficulty prevention measures are intended to restore the situation of a company before it enters a state of cessation of payments. They therefore make it possible to prevent the difficulties from worsening and the company from being the subject of collective proceedings (safeguard, receivership or liquidation).

Like these, the procedures for preventing difficulties are procedures:

• Amicable : they are not judicial and lead to the signing of a negotiated agreement.
• Confidential : they are not advertised.
• Fast : up to 3 months for the ad hoc mandate and 4 months for conciliation.
• Flexible : the company director retains all of his powers of direction and management.

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