In recent years the amount of bad debt has reached dangerous level and has undermined the viability of thousands of Portuguese companies. Cash flow problems grows, having a knock-on effect on a company’s ability to pay on time. This situation destabilizes the entire economy. The market methods of collecting bad debts are not always effective enough. Legal action is the final and mostly a costly step.

In this section, we try to provide a broad insight into the debt problems in Portugal.