When a Cheque Bounces… The Decisions That Protect Your Business Begin

A single bounced cheque can disrupt cash flow, delay project milestones and strain a commercial relationship. In many cases the real challenge is not proving the right — it is choosing the legal path that recovers the amount with the least time, cost and business impact.

Understanding the options available at the outset is part of a company's risk management, not a procedural afterthought.

A bounced cheque is more than a financial dispute. It reaches liquidity, contractual obligations, credit standing and the relationships a business depends on: suppliers, customers and the continuity of ongoing projects.

Managing the file properly from day one is often worth more than the value written on the cheque.

Federal Decree-Law No. 50 of 2022 on Commercial Transactions gives the cheque a distinct status as an instrument of payment and, in many cases, allows it to be enforced directly.

Not every dishonoured cheque is treated alike. The procedure and the outcome both turn on the reason for dishonour and on the nature of the underlying legal relationship between the parties.

When a cheque bounces, we recommend a structured assessment of the file before any step is filed:

• The stated reason for dishonour
• The legal time limits that have started to run
• The nature of the underlying contract
• Any other guarantees or security available
• The most effective route: enforcement, civil claim or settlement