In an economic world where transactions are becoming increasingly complex, retention of title is a lifeline for companies seeking financial security. KREANCIA explains this essential legal mechanism and its impact on the fight against non-payment.
Although discreet, retention of title is a formidable weapon for suppliers anxious to protect their cash flow and avoid losses due to non-payment.
Its strength lies in its ability to suspend the transfer of ownership of goods delivered, until full payment of sums due by the debtor.
This is not just another contractual clause, but a real lever of influence that consolidates the creditor’s power in the face of market uncertainty. The implementation of this clause requires rigor and unfailing legal precision, as it must be written down in black and white and be based on perfectly identified assets.
This specificity makes it possible to trace the goods concerned and to assert their claim in the event of financial difficulties encountered by the purchaser.
What’s more, registration with the Clerk of the Commercial Court gives the retention-of-title clause the power of a security interest, considerably strengthening the supplier’s position in the hierarchy of creditors in the event of receivership or insolvency proceedings.
This preventive procedure is far from incidental: it represents a strategic barrier against the risk of non-payment. As such, it plays an active part in the fight against non-payment, while preserving the long-term future of the supplier company. Let’s not underestimate its potential, because in times of economic turbulence, every detail counts to ensure the survival and development of the business.
The claim is at the heart of the problem of retention of title.
In other words, it enables the supplier to mark his territory on the goods, even when they are in the hands of the purchaser.
In the context of insolvency proceedings, where assets may be threatened by liquidation or widespread redistribution, retention of title is a vital safeguard. This clause acts as a shield in the event of the debtor’s default, since registration of the retention of title with the registry is irrefutable proof of ownership, giving the debtor the right to restitution or recovery of priority claims.
In times of crisis, the speed with which a company can recover its assets or payment of its debts is crucial. This opens up a whole range of possibilities for the supplier: he can demand the return of his assets or, if the insolvency authorities so wish, opt to settle the debt through the mandataire judiciaire. This procedural security is essential to prevent the risk of financial loss.
Claiming and returning goods under retention of title is more than just a formality – it represents tangible insurance for the company that has agreed to staggered, even risky, payment terms.
With reliable support such as that offered by KREANCIA, companies can protect themselves against the vagaries of commerce, and consolidate their finances through intelligent preventive practices.
In the war against non-payment, prevention is the first line of defense. However, when this fails, retention of title becomes an essential rectification tool. Thanks to retention of title, the supplier is not left to the mercy of events when a customer in receivership struggles to honor its commitments.
Indeed, within the legal framework, insolvency proceedings often impose a moratorium on debts, thus freezing receivables that predate the process. This situation could almost paralyze the supplier’s action if he had not taken the precaution of inserting and registering a retention-of-title clause.
The advantage is twofold for the supplier who has secured his transaction in this way: on the one hand, he can take action for the return of goods still unpaid, reducing the time and effort involved, as well as the risk of the goods being used or sold before he has had a chance to act.
On the other hand, in the event of debtor insolvency, retention of title preserves the resources of the creditor company, providing a solid legal framework for debt recovery. It is therefore clear that the implementation of such a clause is not just a simple contractual device, once it is followed by registration with the Registry, but a robust element of financial governance. Combined with effective collection strategies and appropriate follow-up measures, registration of a retention of title clause becomes a must for any company wishing to navigate confidently through sometimes troubled commercial waters.
FAQs on retention of title
Retention of title is a contractual clause that allows the seller to retain ownership of a sold item until the buyer has paid the price in full. This clause must be expressly agreed in writing and ensure that the goods are identifiable. It provides legal certainty for the seller by giving him the possibility of reclaiming the goods in the event of non-payment.
In the event of insolvency proceedings, such as receivership, a company that has fallen into arrears may invoke the retention of title clause to claim unpaid goods. However, registration of the clause at the commercial court registry gives it legal force, enabling the company to simplify the procedures for returning the goods or obtaining priority payment from the court-appointed representative.
Retention of title secures commercial transactions by protecting the supplier against non-payment. It facilitates the recovery of debts by offering the possibility of claiming the goods, their restitution, or being paid in priority to other creditors, in the event of the debtor’s default.
KREANCIA offers you a range of preventive actions such as the registration of retention of title clauses with the clerk of the commercial court concerned for each customer, customer reminders and collection actions, as well as actions enabling the restitution of goods subject to retention of title in partnership with court-appointed agents.
