Payment refuse

Arrears collection # Debt

If international payment for goods cannot be recovered, the following measures can be taken:

I. Based on the contract terms

1.Payment methods and implementation

When signing a contract, carefully choose the payment method. For example, the letter of credit (L/C) should be preferred. For high-risk payment methods such as open account, it is necessary to assess the creditworthiness of the other party. If the open account method is adopted and it is difficult to collect payment, require the other party to pay interest and liquidated damages according to the terms of overdue payment in the contract.

1.Dispute resolution clauses

The contract should clearly define the method of dispute resolution (arbitration or litigation) and the applicable law. For example, it can be agreed to conduct arbitration at the International Chamber of Commerce (ICC) or to file a lawsuit in accordance with the United Nations Convention on Contracts for the International Sale of Goods (CISG).

II. Utilize credit insurance

Exporting enterprises can purchase export credit insurance. For example, China Export & Credit Insurance Corporation (Sinosure). When it is difficult to recover payment for goods, the enterprise can submit relevant materials such as trade contracts, bills of lading, and invoices. After verification, Sinosure will make compensation according to the contract.

III. International debt collection

1.Entrust professional agencies

Entrust professional international debt collection agencies, such as ABC-Amega. They have professional teams and rich experience, and will use legal means such as phone calls, letters, and on-site visits to collect debts. They will charge a certain percentage of service fees after successfully recovering the debts.

1.Use local debt collection companies with caution

In some countries, debt collection companies are legal, but it is necessary to carefully evaluate them to avoid being implicated by their illegal means.

Payment refuse

IV. Diplomatic channels (This part wasn't fully written above. Diplomatic channels may also play a certain role, such as with the assistance of the commercial departments of embassies in communication, etc.)