Mexico collection profile

Mexico-bnr

 

Collecting in Mexico

  • The law provides no framework on standard payment terms, but it is common to rely on 30 days credit starting from the date of the invoice. In practice, payments take place wihtin 40 to 50 days on average, whilst delays of 15 to 30 days may be expected.

  • The court system is complicated by its federal structure and it is known for a lack of transparency and independence. Business disputes are not dealt with by specialized judges and in practice the fast track mechanisms which could facilitate proceedings when the claim is straightforward cannot be relied upon. Overall, procedural delays and costs are significant and pre-legal action remains the most efficient means of collecting debt.

  • The debt restructuration process is not efficient at all, and proceedings may last for years (ex. Mexicana). As a result, liquidation is in practice the default procedure when the debtor becomes insolvent and the chances of collect debt through this channel are very low.
 
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    mexico

    Mexico

    Collection complexity

    severe-2


    Collection relating to

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

    Publications about Mexico

    › All publications about Mexico