Executive Arbitration: How to Collect Your Debts in Record Time Without Spending Years in Court

How much does it cost your company when an invoice, promissory note, or breached contract gets “stuck” in the judicial system for three or even five years? For many businesses in Colombia, the answer is simple: far too much.

Since February 27, 2026, the entry into force of Law 2540 of 2025 has changed the rules. Companies no longer need to rely exclusively on the congested ordinary court system to recover their money. A new mechanism has emerged: Executive Arbitration, a fast-track path that allows businesses to recover outstanding debts more efficiently.

At Trébol Jurídico, we explain why this option has become one of the most effective tools for debt recovery and what your company should do to take advantage of it.

1. What is Executive Arbitration and why is it faster?

Traditionally, arbitrators (private judges) could only decide who was right in a dispute, but they could not enforce payment by seizing the debtor’s assets. That power belonged exclusively to the ordinary civil court system.

Under the new law, an Arbitral Tribunal now has the authority to:

• Order immediate seizures of bank accounts and assets.
• Carry out auctions of properties.
• Issue an enforceable decision (arbitral award) within a maximum period of 12 months.

While a typical enforcement process in the courts can take an unpredictable number of years, executive arbitration operates under a legal time limit that cannot exceed one year.

2. The “Collection Guarantee”: The Interim Relief Arbitrator

This is perhaps the most significant advantage. The law allows the appointment of a specialized arbitrator dedicated exclusively to interim measures.

What does this mean in practice? Similar to judicial proceedings, arbitrators may now order the freezing or seizure of a debtor’s bank accounts even before the formal claim is filed.

This prevents the debtor from moving funds or hiding assets once they become aware of the dispute, ensuring that there are available assets from which the debt can ultimately be recovered.

3. Mandatory arbitration agreement

Executive arbitration is not automatic. To use this mechanism, the parties must agree to it in writing through a contract or a separate document.

Key rules for your contracts:

• It must be institutional: the arbitration must be administered by an authorized arbitration center, such as a Chamber of Commerce. Independent or informal arbitrators are not allowed for this type of process.
• Important for promissory notes: if your company uses promissory notes, the arbitration agreement cannot be written inside the negotiable instrument itself. It must be contained in a separate document or annex that refers to the debt.
• Open or closed clause: the arbitration agreement may apply only to a specific obligation (closed clause) or to all present and future business relationships with the same client (open clause).

4. Cost and effectiveness

Executive arbitration is not free. Companies must pay arbitrator fees, legal representation costs, and administrative fees to the arbitration center, usually managed by a Chamber of Commerce.

However, the analysis we conduct at Trébol Jurídico for our clients is primarily financial:

• Ordinary courts: although the process may appear “free,” the value of money erodes due to inflation during years of waiting, and the opportunity cost of not having access to that capital can be substantial.
• Executive arbitration: it involves an initial cost but allows businesses to recover their funds in less than a year. In practical terms, it means purchasing time and liquidity.

5. Consumer protection: what you should know

If your company sells to individual consumers, the law establishes stricter protections.

You cannot require a consumer to accept arbitration as a mandatory condition for granting credit or entering into a contract.

Additionally, consumers have a 60-day withdrawal right. This means that if they sign the arbitration agreement, they may revoke it within two months and choose to resolve any dispute before the ordinary courts instead.

How to get started

For Executive Arbitration to work effectively, the key lies in your contracts from the very beginning.

At Trébol Jurídico, we help companies to:

• Draft executive arbitration clauses that effectively protect their assets.
• Structure promissory notes and debt instruments in compliance with the requirements of Law 2540 of 2025.
• Represent businesses before Chambers of Commerce to enforce debts as efficiently as possible.

Do not allow your accounts receivable to become a forgotten file in a courthouse. The future of debt collection in Colombia is private, specialized, and above all, fast.

Would you like to know whether your current contracts allow executive arbitration? Contact Trébol Jurídico and secure your company’s liquidity.