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Time Business News
09-07-2025
- Business
- Time Business News
Understanding Cross-Border Debt Collection Laws in the EU and Beyond
In today's global economy, cross-border trade is a vital component of B2B commerce. Yet with this opportunity comes significant legal complexity, especially when payments go unpaid. The process of collecting a business debt across jurisdictions is rarely straightforward, as legal systems, enforcement mechanisms, and procedures vary widely. Within the European Union (EU), some legal harmonization exists, but beyond its borders, debt recovery often becomes a strategic and legal maze. The EU Framework: Harmonization with National Variations The European Union has made considerable progress in streamlining civil and commercial debt recovery processes. Instruments such as the European Payment Order (EPO), European Small Claims Procedure, and Brussels I Regulation (recast) provide a unified structure for cross-border enforcement. Creditors can obtain enforceable titles across EU member states without initiating new lawsuits in each country, reducing costs and delays. However, national laws still apply in areas such as interest rates on late payments, procedural time limits, and enforcement fees. A creditor pursuing debt in France or Poland, for example, must still navigate local practices when executing a judgment. This duality—European-level instruments supported by national legal nuances—requires a combination of legal knowledge and practical coordination. Beyond the EU: Divergence and Complexity Outside the EU, things become more fragmented. While multilateral treaties like the New York Convention aid in enforcing arbitral awards, there is no equivalent universal mechanism for enforcing foreign court judgments. Countries such as the U.S., China, and the UAE follow distinct rules on jurisdiction, recognition, and enforcement. This legal divergence poses major challenges for creditors working with clients or suppliers in emerging markets. Debt collection in these jurisdictions often requires legal proceedings from scratch, translation of documents, engagement of local counsel, and attention to cultural or political nuances in the business environment. The Role of Bilateral Agreements and Treaties Where multilateral solutions fall short, bilateral treaties between countries can sometimes ease debt recovery. These agreements typically address judicial cooperation, mutual recognition of judgments, and asset recovery support. However, they are not always active or comprehensive, and their interpretation may vary by local courts. Businesses operating internationally should proactively assess whether any treaties exist between their home country and that of their debtor. This research should be part of initial credit risk assessments, not a last resort after default. Arbitration and Mediation as Alternative Paths Given the inconsistencies in national court systems, many international companies favor arbitration or structured mediation. Arbitration awards are widely enforceable under the New York Convention, providing more predictability. Additionally, alternative dispute resolution (ADR) methods are often faster and less confrontational, which is important for maintaining long-term trade relationships. However, to leverage arbitration effectively, companies must ensure the original contract includes a valid arbitration clause, drafted in compliance with both parties' legal frameworks. Practical Strategies for Cross-Border Collection Navigating multiple legal systems requires not just legal expertise, but also strategic planning. Businesses should standardize contract terms to include governing law, dispute resolution methods, and late payment penalties. It's also crucial to perform due diligence on clients' legal environments and credit history before extending trade credit. Partnering with specialized international debt recovery agencies can help bridge the enforcement gap. These firms combine legal insight with local knowledge and multilingual capacity—crucial in avoiding missteps that delay or derail recovery efforts. Understanding the legal landscape of cross-border debt collection is a competitive necessity in global B2B trade. Within the EU, harmonized tools ease enforcement, though national practices still apply. Beyond the EU, recovery processes are more fragmented, requiring tailored legal and strategic approaches. Whether through European orders, bilateral treaties, or arbitration mechanisms, success depends on preparation, contract clarity, and local legal partnerships. Businesses that invest in cross-border legal awareness are better positioned to protect cash flow and sustain global operations. TIME BUSINESS NEWS
Time Business News
03-07-2025
- Business
- Time Business News
Managing International Payment Enforcements A Comprehensive Guide
In today's global economy, cross-border transactions are essential to the operations of countless businesses. However, as companies expand beyond their national borders, the complexities surrounding managing international payment enforcement become increasingly significant. Ensuring that payments are made promptly and disputes are resolved efficiently is critical to maintaining healthy business relationships and sustaining international trade. One of the foremost difficulties in managing international payments is navigating the regulatory and legal differences between countries. Each jurisdiction has its own contract laws, enforcement protocols, and dispute resolution frameworks. This can create confusion and slow down the payment collection process, especially when dealing with unfamiliar or less developed legal systems. When disputes arise over unpaid invoices or contract breaches, knowing which jurisdiction has the authority to hear the case is crucial. Jurisdiction can depend on contract terms, the domicile of the involved parties, or the location where the contract was executed. Misunderstanding these nuances can lead to costly legal battles and ineffective enforcement. Well-drafted international contracts are the backbone of enforceable cross-border payments. These agreements should clearly specify payment terms, dispute resolution mechanisms, governing law, and enforcement clauses. Clarity in contract language can significantly reduce misunderstandings and lay the groundwork for effective enforcement. Dispute resolution outside traditional courts, such as arbitration and mediation, is often preferred in international payment conflicts. These methods offer faster resolutions, more privacy, and greater flexibility. Arbitration, in particular, is recognized across borders under international treaties like the New York Convention, making its awards easier to enforce globally. The New York Convention of 1958 is a cornerstone for enforcing international arbitration awards. It provides a framework that requires member states to recognize and enforce arbitral decisions made in other member countries. This treaty offers businesses confidence that an arbitration award can be enforced even if the debtor is located overseas. Enforcing a judgment in a foreign country involves a process called recognition and enforcement. Not all countries readily recognize foreign court judgments, particularly if there is no reciprocal treaty in place. The process can be time-consuming and costly, requiring legal assistance in the debtor's country. To reduce the risk of non-payment, many businesses use financial instruments like letters of credit or bank guarantees. These tools involve third-party banks that promise payment upon delivery of agreed-upon documents or conditions. They provide security and predictability, especially in high-risk or unfamiliar markets. Modern technology has revolutionized how international payments are made and monitored. Online platforms, blockchain technology, and real-time tracking systems have increased transparency and reduced delays. Digital tools also make it easier to document transactions, which can be critical during enforcement actions. Companies engaged in global trade must implement robust compliance and monitoring systems to detect irregularities and avoid violations of international sanctions or anti-money laundering regulations. These systems help ensure that international payments are not only timely but also legally compliant. Trade credit insurance is another layer of protection for exporters. It covers the risk of non-payment due to customer insolvency, political upheaval, or other commercial issues. Insurers may also assist in debt recovery efforts and enforcement actions, offering both financial and logistical support. When dealing with international enforcement, having local legal counsel can make a significant difference. Lawyers who understand the domestic laws of the debtor's country can navigate the enforcement landscape more efficiently and increase the likelihood of a successful outcome. Certain contractual clauses can strengthen a company's ability to enforce payments. These include forum selection clauses, choice-of-law clauses, and escalation clauses that detail the steps to be taken in case of disputes. Carefully negotiating and drafting these terms is a proactive approach to managing enforcement risks. Cultural misunderstandings and language barriers can complicate international transactions and enforcement. Misinterpretations of intent or contractual obligations can escalate disputes unnecessarily. Being culturally sensitive and employing accurate translation services can mitigate such issues. Fluctuations in currency values can affect payment amounts and enforcement strategies. Hedging tools like forward contracts or currency swaps help manage this risk, ensuring that the value of a payment remains stable despite market changes. Meticulous record-keeping is essential in any enforcement process. From initial contracts to emails, invoices, and proof of delivery, comprehensive documentation strengthens the case if legal or arbitration proceedings become necessary. It also demonstrates good faith and transparency. Before entering into international agreements, conducting thorough due diligence on prospective partners helps identify potential risks early. Reviewing credit histories, business practices, and legal backgrounds reduces the likelihood of payment disputes and enforcement challenges. Managing international payment enforcements is a multifaceted endeavor that requires strategic planning, legal foresight, and robust systems. By understanding jurisdictional complexities, leveraging contractual tools, and embracing modern technology, businesses can significantly reduce the risks of non-payment. Effective enforcement is not just about legal action; it's about proactive risk management, relationship building, and choosing the right partners and tools. With a well-rounded approach, businesses can confidently navigate the intricate world of international payments and build a solid foundation for global growth. Read More: internet chicks TIME BUSINESS NEWS
Web Release
26-05-2025
- Business
- Web Release
Closing of the first edition of Beirut Arbitration Days: Professor Najib Hage-Chahine's Ten Recommendations to Cement Beirut as the Regional Capital of Arbitration
Closing of the first edition of Beirut Arbitration Days: Professor Najib Hage-Chahine's Ten Recommendations to Cement Beirut as the Regional Capital of Arbitration In the presence of the President of the Beirut Bar Association, Mr. Fadi Masri, and at the initiative of the event's creator, Professor Najib Hage-Chahine, the first edition of 'Beirut Arbitration Days' concluded on 22 May 2025 after attracting more than 1,000 participants from 40 countries, 60 international speakers and 40 supporting organizations. Prime Minister Judge Nawaf Salam opened the conference, confirming Lebanon's ability 'to regain its regional and international role in arbitration.' Both Minister of Justice Judge Adel Nassar and Minister of Information Dr. Paul Morcos affirmed the government's support for spreading the culture of arbitration, while the President of the Bar Association stressed the Bar's commitment to consolidating this course. The Ten Recommendations of Professor Najib Hage-Chahine In the closing session, Professor Najib Hage-Chahine presented ten practical recommendations: Lawyers: Insert an arbitration clause in contracts and choose Beirut as the seat. Judiciary: Support the independence of arbitrators and accelerate annulment and enforcement proceedings. Legislators: Update the Arbitration Law to align with the New York Convention and international standards. Government: Integrate arbitration into investment-attraction policies and develop specialized digital infrastructure. Arbitrators: Commit to the highest levels of transparency, ethics, and continuous training. Experts: Adopt precise scientific models in the assessment of damages and act as support to arbitral tribunals, not as a party in the dispute. Arbitration centers: Strengthen regional cooperation and embrace technology and diversity. Universities: Integrate arbitration into curricula and provide practical training for students. Students and youth: Engage in moot courts and fellowship programs. Bar Association: Entrench LIAC-BBA as a strategic arm for independent arbitration. The event concluded with Professor Hage-Chahine affirming that 'Beirut has returned as the capital of Arab arbitration' and inviting participants to the next edition, 'Beirut Arbitration Days 2026,' under the slogan Beirut Nutrix Legum.
Singapore Law Watch
23-05-2025
- Business
- Singapore Law Watch
Singapore's alternative dispute resolution ecosystem must evolve to stay relevant: Murali
Singapore's alternative dispute resolution ecosystem must evolve to stay relevant: Murali Source: Straits Times Article Date: 23 May 2025 Author: Zaihan Mohamed Yusof This will ensure businesses have certainty amid a volatile world, says Minister of State for Law and Transport Murali Pillai. Hubs for alternative dispute resolution (ADR) must evolve to deliver certainty and the rule of law for businesses amid the volatile global landscape. In a speech on May 22 to about 200 delegates at the Alternative Dispute Resolution Conference, Minister of State for Law and Transport Murali Pillai said Singapore aims to navigate the complex and dynamic global environment in three ways – upholding the rule of law, innovation and creating partnerships. On the rule of law, Mr Murali said Singapore is a strong proponent of multilateralism, noting that the Republic had signed and ratified a number of key international conventions, including the New York Convention, the Hague Choice of Court Convention and the Singapore Convention on Mediation. He said these instruments enhance the enforceability of arbitral awards, court judgments and mediated settlement agreements across borders. Mr Murali highlighted the most recent addition – the Singapore Convention on Mediation, which currently has 18 parties and 57 signatories, including many countries from Asean and Asia. 'We hope that more countries will sign and ratify the convention, allowing mediation to become a truly effective and trusted means for resolving cross-border disputes – complementing arbitration as a key pillar of international dispute resolution,' he said. Speaking at the conference, held at the Pan Pacific Singapore and jointly organised by the Law Society of Singapore and LawAsia (The Law Association for Asia and the Pacific), Mr Murali said that Singapore must consistently innovate, improve and create better ways to meet global needs. He said changes were made to introduce a framework for fee agreements to align the ADR landscape in Singapore with practices and developments on the international front. Singapore has also embraced technology, with the Singapore International Mediation Centre offering the use of the Mediation Artificial Intelligence Assistant. The tool allows users to quickly make sense of large volumes of information, including generating a chronology of events, outlining the roles of individuals, providing a table of common positions and differences between parties, and summarising the documents and data provided by parties. Mr Murali said Singapore recognises that it cannot operate in isolation because of the international nature of the disputes. At the government-to-government level, he noted that the Ministry of Law has signed memorandums of understanding with counterparts around the world. ADR institutions here have also collaborated with foreign ADR institutions, trade bodies, bar associations, hearing centres and law schools to exchange knowledge and best practices. Mr Murali said ADR institutions in Singapore have an international board, court and panel from both common law and civil law jurisdictions. 'Just as Singapore is integrated into the global trading system, our ADR ecosystem must also be globally connected. 'To this end, we have liberalised our dispute resolution regime,' he added, noting that parties can appoint counsel, arbitrators and mediators of any nationality. In his speech, Mr Murali said he is optimistic that globalisation is here to stay, though in a different form, with new ties forged between like-minded jurisdictions. He said he was especially confident about the future of Asia, noting that three of the top five largest economies in the world are in Asia – China, Japan and India. 'Asean, as a collective bloc, is around the same size as India. This region is dynamic and full of promise. The Asia-Pacific is home to over 60 per cent of the world's youth aged 15 to 24, representing not only a significant source of talent but also a growing base of consumers. 'With an expanding middle class and increasing urbanisation, we are witnessing a surge in infrastructure development and economic activity. And where business thrives, so too does demand for legal and dispute resolution services. There is room for all of us to benefit from this growth,' he added. Legal experts speaking to The Straits Times on the sidelines of the event said new trends are emerging in the ADR environment. One of the delegates at the conference, Mr See Chern Yang, director of dispute resolution at Drew & Napier, told ST: 'We are starting to see more commercial disputes, especially now... cross-border, commercial disputes between two parties of different countries getting through the mediation system. 'We are also starting to see a trend of what we call pre-commencement mediation, which means even before the case is found in the court, before litigation commences, parties with their lawyers collectively decide, 'let's mediate'.' Parties from around the world have chosen Singapore as the dispute resolution forum, even when the dispute has no direct connection with Singapore. In the latest Queen Mary University of London and White & Case's International Arbitration Survey, Singapore continues to rank among the top four most preferred seats of arbitration across all regions, including Africa and Latin America. The Singapore International Arbitration Centre has received cases from parties in 110 jurisdictions. Mr Shyam Divan, president of LawAsia, said ADR can bring cost savings and more efficiency to feuding parties. In international trade disruptions, such as during the Covid-19 pandemic, parties may find themselves having a problem that needs to be solved quickly. Mr Divan told ST: 'So in situations like that, I think ADR, without having to go through the court system, is much more efficient – either through the arbitration or the mediation route – in trying to have a solution that is acceptable to two sides.' He added that he sees mediated settlements gaining popularity. Mr Murali, who will be appointed Senior Minister of State for Law and Transport on May 23, told ST about his new role of 'being a team player in the team captained by Prime Minister Lawrence Wong'. 'The goal is simple but difficult – to win the match to secure our country's future at local, national and international levels,' he said. Source: The Straits Times © SPH Media Limited. Permission required for reproduction. Print
Straits Times
22-05-2025
- Business
- Straits Times
Singapore's dispute resolution ecosystem must evolve to stay relevant: Murali
Mr Murali Pillai, Minister of State for Law and Transport, speaking at the Alternative Dispute Resolution Conference on May 22. ST PHOTO: NG SOR LUAN SINGAPORE – Hubs for Alternative Dispute Resolution (ADR) must evolve to remain relevant to businesses, to deliver certainty and rule of law amid the volatile global landscape. In a speech on May 22 to about 200 delegates at the Alternative Dispute Resolution Conference, Mr Murali Pillai, Minister of State for Law and Transport, said Singapore aims to navigate the complex and dynamic global environment in three ways – upholding the rule of law, innovation and creating partnerships. On the rule of law, Mr Murali said Singapore is a strong proponent of multilateralism, noting that the Republic had signed and ratified a number of key international conventions, including the New York Convention, the Hague Choice of Court Convention, and the Singapore Convention on Mediation. He said these instruments enhance the enforceability of arbitral awards, court judgments, and mediated settlement agreements across borders. Mr Murali highlighted the most recent addition - the Singapore Convention on Mediation, which currently has 18 parties and 57 signatories, including many progressive countries from ASEAN and Asia. 'We hope that more countries will sign and ratify the Convention, allowing mediation to become a truly effective and trusted means for resolving cross-border disputes – complementing arbitration as a key pillar of international dispute resolution,' he said. Speaking at the conference, jointly organised by the Law Society of Singapore and LawAsia (The Law Association for Asia and the Pacific), held at the Pan Pacific Singapore, Mr Murali said Singapore must consistently innovate, improve, and create better ways to meet global needs. He noted changes were made to introduce a framework for fee agreements, to align the ADR landscape in Singapore with practices and developments on the international front. Singapore also embraced technology, with the Singapore International Mediation Centre (SIMC) offering the use of the Mediation Artificial Intelligence (AI) Assistant. The tool allows users to quickly make sense of large volumes of information, including generating a chronology of events, outlining the roles of individuals, providing a table of common positions and differences between parties, and summarising the documents and data provided by parties Mr Murali said because of the international nature of the disputes, Singapore recognises that it cannot operate in isolation. At the government-to-government level, he noted that the Ministry of Law has signed memorandum of understanding with counterparts around the world. ADR institutions have also collaborated with foreign ADR institutions, trade bodies, bar associations, hearing centres and law schools, to exchange knowledge and best practices. Mr Murali said ADR institutions in Singapore have an international Board, Court and panel from both common law and civil law jurisdictions. 'Just as Singapore is integrated into the global trading system, our ADR ecosystem must also be globally connected. 'To this end, we have liberalised our dispute resolution regime,' he added, noting that parties can appoint counsel, arbitrators and mediators of any nationality. In his speech, Mr Murali said he is optimistic that globalisation is here to stay, though in a different form, with new ties forged between like-minded jurisdictions. He said he was especially confident about the future of Asia, noting that three of the top five largest economies in the world are in Asia – China, Japan and India. 'ASEAN, as a collective bloc, is around the same size as India. This region is dynamic and full of promise. 'The Asia-Pacific is home to over 60 per cent of the world's youth aged 15 to 24, representing not only a significant source of talent, but also a growing base of consumers. 'With an expanding middle class and increasing urbanisation, we are witnessing a surge in infrastructure development and economic activity. 'And where business thrives, so too does demand for legal and dispute resolution services. There is room for all of us to benefit from this growth,' he added. Legal experts speaking to The Straits Times at the sideline of the event said new trends are emerging in the ADR environment. One of the delegates at the conference, Mr See Chern Yang, director of dispute resolution at Drew & Napier, told The Straits Times: 'We are starting to see more commercial disputes, especially now... cross border, commercial disputes between two parties of different countries getting through the mediation system. 'We are also starting to see a trend of what we call pre-commencement mediation, which means even before the case is found in the court, before litigation commences, parties with their lawyers collectively decide, 'let's mediate'.' Mr See Chern Yang, director of dispute resolution at Drew & Napier, said that they are starting to see more commercial disputes, especially now. ST PHOTO: NG SOR LUAN Parties from around the world have chosen Singapore as the dispute resolution forum , even when the dispute has no direct connection with Singapore. In the latest Queen Mary University of London and White & Case's International Arbitration Survey, Singapore continues to rank amongst the top four most preferred seats of arbitration across all regions, including Africa and Latin America. The Singapore International Arbitration Centre has received cases from parties from 110 jurisdictions. Mr Shyam Divan, president of LawAsia, said ADR can bring cost-savings and be more efficient to feuding parties. In international trade disruptions, such as the Covid-19 pandemic, parties may find themselves having a problem which needs to be solved quickly. Mr Divan told ST: 'So in situations like that, I think ADR, without having to go through the court system, is much more efficient – either through the arbitration or the mediation route – in trying to have a solution which is acceptable to two sides.' He added that he sees mediated settlements gaining popularity. Mr Shyam Divan, president of LawAsia, said ADR can bring cost-savings and be more efficient to feuding parties. ST PHOTO: NG SOR LUAN Mr Murali, who will be appointed Senior Minister of State for both portfolios from May 23 , told ST about his new role as 'being a team player in the team captained by Prime Minister Lawrence Wong'. He said: 'The goal is simple but difficult – to win the match to secure our country's future at local, national and international levels.' Zaihan Mohamed Yusof is senior crime correspondent at The Straits Times. Join ST's WhatsApp Channel and get the latest news and must-reads.
