[Direct answer]It is difficult for enterprises to collect accounts receivable. They should form a combination path of "account verification - tiered collection - litigation preservation - forced execution": first, confirm the creditor's rights with an account verification letter and interrupt the three-year statute of limitations (Article 188 of the Civil Code of the People's Republic of China, implemented on January 1, 2021); if the collection is unsuccessful, file a lawsuit or apply for a payment order, and simultaneously apply for property preservation; after winning the lawsuit, apply for forced execution within the statute of limitations for enforcement (Article 246 of the Civil Procedure Law of the People's Republic of China, amended on September 1, 2023). If the other party is a government institution, public institution, or large enterprise that defaults on payments to SMEs, they can also cite the "Regulations on Ensuring Payment of Funds to SMEs" (implemented on September 1, 2020, and amended on June 1, 2025) to claim payment deadlines and overdue interest. For more details, please refer to the following link:Receivables and legal services for enforcement cases、Corporate contract dispute lawyer services.

I. Legal basis and interpretation of provisions

1. Article 577 of the Civil Code of the People's Republic of China (effective from January 1, 2021)

When a party fails to perform its contractual obligations or performs them in a manner inconsistent with the agreement, it shall bear contractual liabilities such as continuing to perform the contract, taking remedial measures, or compensating for losses. Accounts receivable arise from contractual relationships such as sales, contracting, and services. If the payment obligation party defaults on payment, it constitutes a breach of contract. The creditor may claim the principal, overdue interest, and reasonable expenses for realizing the creditor's rights. If the contract stipulates overdue payment interest or a breach of contract penalty, it may be supported within a reasonable range. If the amount is excessively higher than the actual losses, the court has the right to adjust it. Therefore, before suing, the claimant should calculate the amount of the claim based on the actual losses.

2. Article 246 of the Civil Procedure Law of the People's Republic of China (amended on September 1, 2023)

The period for applying for enforcement is two years, starting from the last day of the performance period specified in the legal document. Signing the bill, receiving the other party's written commitment to repayment, and initiating litigation can all have the effect of interrupting the statute of limitations. Enterprises should establish a ledger for accounts receivable and set up a statute of limitations warning system to prevent a passive situation of "having a claim but no remedy" due to the expiration of the statute of limitations; for confirmed undisputed accounts, they should promptly handle payment orders or mediation documents, and also lock in the enforcement basis in advance.

3. Practical adjudication guidelines

The court's review of accounts receivable cases focuses on three points: First, the validity of the contract and the evidence of signing. Whether the signatories on delivery notes, acceptance notes, and settlement notes have the right to represent is often a point of contention; Second, the effectiveness of account reconciliation. Account reconciliation notes stamped with the company's official seal are almost equivalent to creditor's confirmation, which can greatly simplify the trial process; Third, the timeliness of preservation. The first attachment and the waiting attachment have a significant impact on the final order of compensation. In practice, mediation often occurs after preservation is in place. It is recommended to investigate the other party's bank accounts, accounts receivable, and real estate clues before filing a lawsuit. If the debtor enters bankruptcy proceedings, they should promptly declare their claims, and the interest shall be calculated until the date of acceptance of the bankruptcy application (Article 46 of the Enterprise Bankruptcy Law of the People's Republic of China, implemented on June 1, 2007).

II. Practical Experience of Henglue Law Firm

Practical Observations on Handling Corporate Accounts Receivable and Enforcement Cases by Henglue Lawyers: 1. The lack of creditor's proof is the biggest weakness. It is necessary to form an evidence loop through regular reconciliation, settlement slips, and invoice receipts, rather than rushing to obtain proof only before suing. 2. The pace of debt collection should be gradual. Send a letter of reminder immediately after the payment deadline, escalate to a lawyer's letter after 30 days of overdue, and evaluate litigation preservation after 60 days to avoid entering the statute of limitations danger zone. 3. Common pitfalls include relying solely on sales staff's verbal collections, data gaps after employee departures, trusting "non-binding repayment commitments" without written records, and failing to follow up on enforcement after debt restructuring. 4. Combine tools such as factoring, bills, accounts receivable pledges, and guarantee credit enhancement to diversify risks in advance at the transaction stage. For contract clause design and transaction structure optimization, please refer to the relevant materials for reference.Enterprise contract dispute resolution solutionsFor the implementation and declaration matters, you can refer to the following for more information.Professional services for cases involving the enforcement of creditor's rights and debt collection.

III. Frequently Asked Questions

Q1: Can I win the lawsuit if I sue for unpaid goods?

In cases where contracts, delivery receipts, and reconciliation statements are all available, the chances of winning the lawsuit are higher, and the disputes mainly focus on the signatory's authority and quality defenses. If the other party refuses to pay due to quality issues, the plaintiff should provide evidence of the quality problems or initiate a counterclaim. Simply making verbal claims usually does not affect the payment obligation. It is recommended to complete the reconciliation before litigation, fix the settlement amount in advance, and then address the issues of interest and fees in the litigation, which can significantly reduce the uncertainty of the judgment and create a basis for mediation.

Q2: What evidence do I need to prepare?

Prepare according to the transaction chain: contracts or orders, delivery notes and acceptance records, invoices, reconciliation statements or settlement confirmations, records of collection and correspondence, and information about the other party and litigation. The evidence chain should correspond to each link of "contracting - delivery - reconciliation - collection" in a complete manner. If the receipt link is missing, the reconciliation confirmation should be supplemented first. Electronic correspondence (emails, WeChat) should retain the original carriers, and important documents should be notarized simultaneously to prevent the other party from denying the identity of the person in charge.

Q3: What are the approximate costs of litigation, and can the other party be made to bear them?

The case acceptance fee shall be prepaid in accordance with the amount of the subject matter, and the winning party shall bear the cost of the losing party; if the contract clearly stipulates that the attorney's fees shall be borne by the breaching party, the claimant may claim them together. The preservation guarantee can be provided by an insurance company's guarantee letter, with a much lower rate than cash guarantee. SMEs do not need to give up preservation due to the pressure of guarantee. Overall, the preservation and litigation costs are predictable and recoverable, which is more cost-effective than indefinitely putting them on the books.

Q4: How long does it take from filing a lawsuit to receiving the repayment?

The simplified procedure takes three months, the ordinary procedure six months, and the payment order procedure is even faster; once the preservation measures are in place, it often leads to the recovery of the payment through mediation within one month. During the enforcement stage, the online investigation and control takes about one to three months. If the other party really has no assets, the case will be transferred to the final litigation stage and tracked for recovery. It is recommended to combine the litigation rhythm with the other party's business nodes (bidding, financing, audit) and choose the most pressured time point to take action, so as to shorten the period from judgment to actual receipt of funds.

Q5: What should I do if the other party is about to go bankrupt or has already entered the bankruptcy process?

For those who have not yet been sued, they should promptly file lawsuits and preserve evidence to avoid their ordinary claims being diluted in the bankruptcy proceedings. For those whose bankruptcies have been accepted, they should file their claims within the declaration period determined by the court, calculate the interest until the date of acceptance, and attend the creditors' meetings. At the same time, they should verify whether the debtors have unpaid shareholders, property confusion, and gratuitous transfer of property. Those who meet the conditions may claim additional liability or exercise the right of revocation. Those who hold security rights on specific property may claim the right of priority repayment through exclusion rights.

IV. Suggestions for Protecting Rights and Interests

  • Establish a ledger for accounts receivable, and send written reminders to the debtors upon the expiration of the payment period, retaining the proof of delivery.
  • The accounts shall be reconciled once every quarter and confirmed by stamping. At the same time, the statute of limitations shall be interrupted and the amount of the creditor's claim shall be fixed.
  • For those who still default on payments more than 60 days after the due date, we will evaluate the case, initiate legal proceedings, and apply for property preservation simultaneously.
  • When signing new contracts, we add provisions on overdue interest, attorney's fees, and guarantees to reduce risks at the source.
  • For cases of bulk defaults on loans or execution being obstructed, you can entrust a third-party collection agency to handle them.Collection attorney for accounts receivableDesign a collection and enforcement plan.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence to avoid missing the statutory time limits.\nLegal services for creditor-debtor disputes·Beijing Henglu Law Firm