Practical Guide

What to Do When an Export Invoice Goes Unpaid

The invoice is overdue and the buyer has gone quiet. Work through these four steps in order - the sequence matters more than the speed.

1
Confirm it is actually a default

Has the due date genuinely passed on your terms, not theirs? Is a transfer sitting in correspondent banking? Is there a credit note or disputed line item nobody logged? A surprising share of "non-payment" turns out to be an administrative gap - and treating a solvent customer as a defaulter damages a relationship you may want to keep.

2
Put the demand in writing

Ask for payment by a specific date, in writing, by email and where the amount justifies it by recorded delivery. State the amount, the invoice numbers and the deadline. This does two things: it gives the debtor a clear opportunity to pay, and it builds the record. Silence in the face of a clear written demand is itself evidence, and in most jurisdictions it is what puts the debtor formally in default so statutory interest starts running.

3
Get the file in order

Invoices, the contract or purchase order, CMR or bill of lading, and the full correspondence thread. Two things are worth hunting for specifically: proof that the goods were received, and any message in which the debtor acknowledges the balance. The second can restart a limitation period that is otherwise close to expiring.

4
Get it assessed before it ages

Recovery prospects fall as a claim ages, and limitation rules differ sharply by country - some run from the year end rather than the invoice date. A free assessment tells you what is realistically recoverable in that jurisdiction, the route we would take, and what it would cost, before you commit to anything.

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Common Questions

Which language should the first demand be in?+

The debtor's working language. A demand written in English reaches the accounts department in many markets but not the person who decides. A demand in the local language, quantifying the amount and the deadline, is read faster and builds a stronger record for any later step.

The buyer says the goods were defective. What now?+

Separate the genuine complaint from the tactical one on the documents. A defect raised for the first time months after delivery, with no written complaint at the time, is usually about delaying payment. Where the acceptance record does show a shortfall, the route is different - and that should be established before cost is committed.

How long can I afford to wait?+

Waiting has a price. Limitation periods differ by country and some run from the end of the calendar year rather than the invoice date; the debtor's financial position can also deteriorate meanwhile. Steps taken in the first months after the due date produce materially better outcomes than steps taken a year later.