The road freight transport company guarantee

You have a road freight transport company that does not pay your invoices? Did you know that these transport companies are obliged to place a guarantee with a financial institution in order to honour their financial commitments?

On their formation transport companies have obligations imposed by Europe since 2009:

1. The company must be established in a stable and effective manner in a Member State;
2. Honorability: Belgium defines this notion in its law of 15 July 2013;
3. Having the required professional capacity: certificate issued by the Minister of Transport (FPS Mobility and Transport) after the applicant passes an examination.
4. Having the appropriate financial capacity.

Focus on the fourth condition: appropriate financial capacity.

In order for a transport company to be able to meet its financial obligations at any time, that company must put up a guarantee according to the number of motor vehicles that it uses for which national transport licences have been issued.

This bail may be as much as 9,000 EUR when a single motor vehicle is used and 5,000 EUR for each additional vehicle used.

The financial agency placing joint and several guarantee will issue a certificate attesting that the financial capacity of that company is in fact real. The various agencies able to place guarantee are listed in the Royal Decree of 22 May 2014. It may concern:

• A bank;
• An approved insurance company;
• A cooperative collective guarantee company approved by the Minister of Finance for bonds for entrepreneurs, licence-holders and tenderers for public works contracts.

This guarantee is set aside in its entirety to guarantee the debts of the company if the debts become due and payable during the period of 365 days preceding the date of call on bail. This guarantee extends to all the accessories of the principal debt and its recovery.

In order to call on this bail the unpaid creditors must give notice of the call on the joint and several guarantee, attaching a court decision, whether or not non-enforceable, delivered in Belgium and charged to the company. This call on bail must be effected by registered letter. In order to identify the financial entity placing your debtor’s joint and several guarantee you will have to contact FPS Mobility and Transport who will tell you the identity of the agency to contact.

Calls on the bail: how does it work?

Calls on bail are processed according to the date of consignment for delivery of the registered letter. Thus, if two creditors call on the bail on the same day, a proportional split is made. If the joint and several guarantee does not oppose the call on bail it is bound to pay the creditor within 60 days of receipt of the call.

If the bail is wholly or partially prepaid the joint and several guarantee must immediately notify the minister by registered letter or by e-mail, stating the amounts paid and all the other creditors named in writing. The minister will then inform the prepayment company in question and order settlement or completion of the bail within a period of 30 days.

If your debtor is declared bankrupt, the rules and time limits are somewhat different. We suggest that you consult the Royal Decree of 22/05/2014 mentioned earlier, which explains the various steps to be taken.

You have a transport company that is not paying you? Contact us by e-mail (info@tcm.be) or by telephone (+32 16 74 52 00), we will do all we can to help you in the amicable phase of recovery. If that should then prove to be impossible we will apply all our experience to guide you through the appropriate legal procedures.

The road freight transport company guarantee

You have a road freight transport company that does not pay your invoices? Did you know that these transport companies are obliged to place a guarantee with a financial institution in order to honour their financial commitments?

On their formation transport companies have obligations imposed by Europe since 2009:

1. The company must be established in a stable and effective manner in a Member State;
2. Honorability: Belgium defines this notion in its law of 15 July 2013;
3. Having the required professional capacity: certificate issued by the Minister of Transport (FPS Mobility and Transport) after the applicant passes an examination.
4. Having the appropriate financial capacity.

Focus on the fourth condition: appropriate financial capacity.

In order for a transport company to be able to meet its financial obligations at any time, that company must put up a guarantee according to the number of motor vehicles that it uses for which national transport licences have been issued.

This bail may be as much as 9,000 EUR when a single motor vehicle is used and 5,000 EUR for each additional vehicle used.

The financial agency placing joint and several guarantee will issue a certificate attesting that the financial capacity of that company is in fact real. The various agencies able to place guarantee are listed in the Royal Decree of 22 May 2014. It may concern:

• A bank;
• An approved insurance company;
• A cooperative collective guarantee company approved by the Minister of Finance for bonds for entrepreneurs, licence-holders and tenderers for public works contracts.

This guarantee is set aside in its entirety to guarantee the debts of the company if the debts become due and payable during the period of 365 days preceding the date of call on bail. This guarantee extends to all the accessories of the principal debt and its recovery.

In order to call on this bail the unpaid creditors must give notice of the call on the joint and several guarantee, attaching a court decision, whether or not non-enforceable, delivered in Belgium and charged to the company. This call on bail must be effected by registered letter. In order to identify the financial entity placing your debtor’s joint and several guarantee you will have to contact FPS Mobility and Transport who will tell you the identity of the agency to contact.

Calls on the bail: how does it work?

Calls on bail are processed according to the date of consignment for delivery of the registered letter. Thus, if two creditors call on the bail on the same day, a proportional split is made. If the joint and several guarantee does not oppose the call on bail it is bound to pay the creditor within 60 days of receipt of the call.

If the bail is wholly or partially prepaid the joint and several guarantee must immediately notify the minister by registered letter or by e-mail, stating the amounts paid and all the other creditors named in writing. The minister will then inform the prepayment company in question and order settlement or completion of the bail within a period of 30 days.

If your debtor is declared bankrupt, the rules and time limits are somewhat different. We suggest that you consult the Royal Decree of 22/05/2014 mentioned earlier, which explains the various steps to be taken.

You have a transport company that is not paying you? Contact us by e-mail (info@tcm.be) or by telephone (+32 16 74 52 00), we will do all we can to help you in the amicable phase of recovery. If that should then prove to be impossible we will apply all our experience to guide you through the appropriate legal procedures.