Unpaid Public Sector Invoices: How Can You Protect Your Cash Flow?

🏛️ Debt collection from public entities: understanding the process to take better action
Many businesses feel powerless when faced with abnormally long payment times or unpaid bills from local authorities, hospitals or public institutions.

And for good reason: collecting a debt from a public entity does not fall under traditional private law.

⚖️ Public bodies benefit from a special legal regime based on the principles of continuity of public service and immunity from enforcement. In practical terms:
It is impossible to seize their bank accounts,
Reminders must follow specific procedures,
And appeals often fall under the jurisdiction of the administrative courts, not the civil courts.

💡 For businesses, the key is anticipation.


It all starts with the drafting of the contract:
Clear billing terms,
Specified payment deadlines,
and provisions regarding penalties and late payment interest.
Next, rigorous follow-up and a formal notice of default sent to the payer are essential before taking any legal action.

If the appeal is unsuccessful, a claim for damages or an application for a provisional injunction before an administrative court may allow for a prompt and enforceable decision.

🧩 Recovering funds from the government requires, above all, a combination of legal expertise, strategic approach, and diplomacy. The goal is to defend the company’s interests while maintaining a positive relationship with a key institutional partner.