Manufacturing and export companies face a specific collection problem: the goods are gone. Unlike a SaaS company that can revoke access or a construction firm with lien rights, once a manufacturer ships product across a border, the leverage shifts entirely to the buyer. Your strongest tools are retention of title clauses, proof-of-delivery documentation that meets jurisdictional standards, and early professional collection before the buyer normalises non-payment.
You shipped 40 pallets of product to a distributor in another country. They confirmed receipt. They placed a second order. Now the first invoice is 90 days overdue and the second order is conspicuously absent. You've entered the exporter's dilemma: chase the payment and lose the customer, or stay silent and finance their inventory for free. Here's the third option — the one that recovers the money and often keeps the relationship intact.
How do I collect an unpaid manufacturing invoice?
- Verify proof of delivery meets legal standards. A signed Bill of Lading, a delivery receipt with the buyer's stamp, or a warehouse confirmation — the specific document required depends on the Incoterm used. Under EXW, risk transfers at your warehouse. Under CIF, it transfers at the destination port. If your proof of delivery doesn't match the contractual Incoterm, the buyer has a defence. Check this before sending your first demand.
- Assert retention of title. If your contract includes a retention of title clause (Eigentumsvorbehalt in Germany, clause de réserve de propriété in France, Romalpa clause in the UK), you may still legally own the goods until payment is received. This is powerful leverage — but only if the clause is valid under the buyer's local law and the goods are identifiable. Mixed or resold goods complicate this significantly.
- Separate quality disputes from payment obligations. Manufacturers face a specific debtor tactic: the buyer claims quality issues with the goods after delivery, timed to delay payment. Respond to the quality claim formally and in writing, but separate it from the undisputed balance. If they received €200,000 of product and are disputing €15,000 worth of defective items, the remaining €185,000 is not under discussion.
- Engage professional collection with industry knowledge. Manufacturing collection requires understanding of Incoterms, trade finance instruments, Letters of Credit, and retention of title across jurisdictions. A generalist approach misses these levers.
What is retention of title and does it work internationally?
Retention of title (RoT) is a contractual clause stating that ownership of goods doesn't transfer to the buyer until payment is received in full. In theory, if the buyer doesn't pay, you can reclaim your goods.
In practice, it depends entirely on the buyer's jurisdiction. Germany has strong RoT recognition (both simple and extended Eigentumsvorbehalt). France recognises RoT if the clause is agreed before delivery. The UK recognises simple RoT but restricts "all monies" clauses. In many Middle Eastern and Asian jurisdictions, RoT clauses are either unenforceable or untested.
The lesson: include RoT in every export contract, but don't rely on it as your sole protection. It's a useful lever in negotiation, not a guarantee of recovery.
How do Incoterms affect debt collection?
Incoterms define when risk and cost transfer from seller to buyer. They also determine who holds the transport documentation — which becomes your evidence in a collection dispute.
Under FOB or CIF, the seller arranges transport and holds the Bill of Lading. Under EXW, the buyer collects from the seller's premises and handles all transport. The collection implication: under EXW, if the buyer claims non-delivery, you may have limited proof they received the goods. Under CIF, you have the shipping documentation chain.
Choose your Incoterm with collection in mind, not just logistics convenience. DDP (Delivered Duty Paid) gives you the strongest proof of delivery. EXW gives you the weakest.
Why do export debts age faster than domestic ones?
Three factors accelerate aging. Language barriers make follow-up slower and less assertive. Timezone differences reduce the number of productive communication windows. And the implicit belief that "international collection is too complicated" becomes a self-fulfilling prophecy — nobody chases, the debt ages, and the recovery probability drops.
The data is the same regardless of geography: recovery rates drop from 94% at 30 days to 73% at 90 days. The border between you and the debtor doesn't change the maths. It just changes who you need to help you.
The goods are delivered. The buyer has them. The invoice is yours.
Contact us for a free assessment. We understand Incoterms, retention of title, and cross-border manufacturing disputes.
Sarah Lindberg
International Operations Lead
Sarah coordinates our global partner network across 160+ countries, ensuring seamless cross-border debt recovery.
