How to Collect an Unpaid Invoice From a Customer Abroad
Quick answer
To collect an unpaid invoice from a foreign customer, start with your contract: it tells you which country's law applies and which courts decide. Inside the EU, shortcuts such as the European order for payment make uncontested claims faster. Outside the EU, a home judgment may need local recognition first. A local partner who knows the rules on the ground makes the biggest difference.
The story in the video
Our lawyer chases an unpaid invoice around the world — by private jet, Paris scooter and camel — only to discover the debtor was next door the whole time. Cross-border collection can feel exactly like that: lots of travel, until you know where to look and who to ask.
Step 1: Which law, which court?
Check your contract first. Two clauses decide almost everything:
- Governing law: which country's law applies to the contract.
- Jurisdiction: which country's courts (or which arbitration) will decide disputes.
If the contract is silent, international rules fill the gap. Within the EU, the Rome I Regulation decides the applicable law and the Brussels I Regulation decides which courts have jurisdiction — often the courts of the debtor's home country.
Step 2: Local rules are different
Even with a clear contract, the practical rules change from country to country: payment deadlines, statutory interest, limitation periods, the language documents must be in, how papers are served, and which steps a court expects before a claim. What works at home may be ignored or even backfire abroad.
Step 3: Use the EU shortcuts
Within the EU, creditors have powerful cross-border tools:
- European order for payment: for uncontested money claims; if the debtor doesn't oppose it within 30 days of service, it becomes enforceable across the EU.
- European Small Claims Procedure: a simplified written procedure for claims up to €5,000.
- Direct enforcement: judgments from one member state can generally be enforced in another without a separate recognition procedure.
Step 4: Outside the EU
Beyond the EU, a court judgment from your home country usually can't be enforced automatically. It may need to be recognised by local courts first, under a treaty or local law — and some countries rarely recognise foreign judgments at all. That's why international contracts often use arbitration: under the New York Convention, arbitral awards are enforceable in over 170 countries. In practice, starting with local negotiation and, if needed, local proceedings is often faster than enforcing a foreign judgment.
Step 5: Get a local partner
The fastest route to payment abroad is usually someone already on the ground: they speak the debtor's language, know the local rules and courts, and carry local weight. Most foreign debtors pay sooner when the demand comes from inside their own country.
How Collecty can help
That's exactly why we built Collecty: one partner for cross-border B2B debt collection, with local expertise in 190 countries. We negotiate locally first and escalate through local lawyers when needed. No win, no fee.
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Frequently asked questions
How do I collect a debt from a company in another country?
Check the governing law and jurisdiction clauses in your contract, send a formal demand, then use local negotiation or proceedings — ideally through a local partner who knows the rules.
Which country's law applies to an international invoice?
The law chosen in the contract. If none was chosen, international rules decide — in the EU, the Rome I Regulation, which often points to the seller's country for a sale of goods.
What is the European order for payment?
An EU procedure for uncontested cross-border money claims. If the debtor doesn't oppose it within 30 days of service, it becomes enforceable throughout the EU.
Can I enforce a judgment from my country abroad?
Within the EU, generally yes. Outside the EU, it usually needs to be recognised by local courts first, which depends on treaties and local law.
Is it worth chasing a small debt abroad?
Often yes. Amicable recovery through a local partner is usually affordable, and for EU claims up to €5,000 the European Small Claims Procedure keeps costs down.
Why use a local collection partner?
They speak the debtor's language, know local law and procedure, and debtors tend to take a demand from inside their own country more seriously.
This guide is general information, not legal advice. Rules vary by country — speak to a qualified lawyer about your situation.
Unpaid invoice abroad? Collecty recovers B2B debts in 190 countries. No win, no fee.
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