Benin collection profile

Benin-bnr

 

Collecting in Benin

  • Most of the time, few SMEs are in the position to meet their undertakings. Before closing any credit deals, it is crucial to perform due diligence, as well as require collateral – namely bank guarantees – from the buyer. While a debtor may request a grace period of up to one year, late payment interest is generally around 5% (as set by the Central Bank, BCEAO).

  • Generally speaking, the courts in Benin are quite independent and transparent. However, corruption and bribery cases are frequently reported. Fast-track procedures are available and new laws have been passed to set up trade tribunals, which have been operational since January 2018.

  • The efficiency of insolvency procedures is often weakened by debtors who diminish their company’s assets, since these assets are considered separate from those of a natural person. The proceedings must then succeed in evidencing that the insolvency is caused by the person’s misconduct, who has unjustifiably used the assets of the company, which often proves difficult.

 

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    Benin

    Benin

    Collection complexity

    severe-2

    Collection relating to

    Payments
    $-3
    Court
    proceedings
    Gav-3
    Insolvency
    proceedings
    Arrow-4