[Direct answer]When a customer defaults on payment, the process should proceed in the following order: fixed evidence - written collection - payment order - litigation preservation. Under the sales contract, the buyer shall pay the price according to Articles 626 and 628 of the Civil Code. If there is no agreement on the payment time, the payment shall be made upon receipt of the subject matter. Written collection can interrupt the three-year statute of limitations (Article 195). If the creditor's claim amount is clear and the other party has no substantive disputes, the creditor may apply for a payment order according to Article 221 of the Civil Procedure Law. If the collection efforts are unsuccessful, the creditor shall sue within the three-year statute of limitations and apply for property preservation at the same time. The creditor may first attempt to resolve the dispute through other means, such as mediation or arbitration, to avoid litigation and save time and costs.Creditor-debtor relations and enforcement case servicesOrBusiness and contract dispute services for enterprisesEvaluate the collection plan.

I. Problem Background and Typical Scenarios

Being owed money is one of the most common operational risks faced by small and medium-sized enterprises. Typical scenarios include: clients delay payments repeatedly on the grounds of financial difficulties, while sales staff are hesitant to pursue collection due to maintaining cooperative relationships; clients only settle part of the payments after multiple deliveries, promising to pay the remaining amount "next month"; clients raise quality objections to reduce prices and demand discounts before making payments; clients sign payment invoices but fail to honor them; and some even receive goods through affiliated companies or transfer payments to personal accounts, shifting blame after problems arise. Many companies, out of face, only conduct verbal collection efforts for a long time, failing to leave collection records and allowing the statute of limitations to expire. By the time they want to sue, evidence has been lost and the statute of limitations has passed, making it exponentially more difficult to recover the debt.

II. Key points of dispute

  • Time Limits and Evidence: The statute of limitations for claims for payment is 3 years, starting from the expiration of the agreed payment period. Long-term oral collection without leaving a trace not only fails to prove the interruption of the statute of limitations, but also makes it difficult to restore the amount of the debt. Therefore, invoices and receipts become the decisive evidence in disputes.
  • Quality defense and deduction: If the client refuses to pay due to quality issues, it is necessary to examine whether the objection was raised within a reasonable timeframe and whether the losses can be proven. Otherwise, it does not constitute a valid defense. However, in some cases, the court may deduct the amount at its discretion.
  • Expanding the scope of the main body and responsibilities: When the actual consignee, payer, and contracting entity are not consistent, or when the client's shareholders make false investments or transfer property at a low price, it is necessary to consider adding additional responsible entities and exercising the rights of subrogation or revocation.

III. Professional analysis by Henglue Law Firm

The basic approach adopted by Henglue Lawyers in handling debt collection cases is "first securing evidence, then applying pressure, and finally providing backup support". **Step 1: Securing Evidence** - Gather contract orders, delivery notes and receipt records, acceptance certificates, reconciliation statements, invoices, payment vouchers, and WeChat chat records. For cases lacking reconciliation statements, arrange for their prompt supplementation. This step determines the effectiveness of all subsequent measures. **Step 2: Written Debt Collection** - Send debt collection letters via EMS and indicate the document type on the shipping label. Each collection attempt triggers the suspension of the statute of limitations under Article 195 of the Civil Code, while preserving evidence for potential litigation. **Step 3: Assessing Repayment Capacity** - Evaluate the debtor's repayment ability through commercial registration information, litigation records, and asset clues. For clear claims, apply for a payment order under Article 221 of the Civil Procedure Law and promptly apply for property preservation to seize accounts and real estate. - If the debtor transfers assets at low prices or without compensation, exercise the right of revocation under Articles 538 and 539 of the Civil Code. - For cases where the debtor fails to collect due debts, initiate a subrogation lawsuit under Article 535. In practice, debts confirmed through reconciliation with the debtor often gain high recognition rates in court. After judgment, enforcement proceeds through asset investigation systems, resulting in actual recoveries in most cases. For cases involving contract payment terms and transaction structure optimization, comprehensive legal advice can be provided.Business and contract dispute resolution services for enterprisesImprove them together.

IV. Practical suggestions and legal basis

Legal basis: Article 626 of the Civil Code (effective January 1, 2021) stipulates that the buyer shall pay the price in accordance with the agreed amount and payment method; Article 628 stipulates that if there is no agreement or an unclear agreement on the payment time, the buyer shall pay at the same time as receiving the subject matter or collecting the subject matter documents; Article 188 stipulates that the statute of limitations period is 3 years; Article 195 lists the interruption events, including the right holder's request for performance to the obligee and the obligee's consent to perform the obligation, etc. According to Article 18 of the Interpretation of the Supreme People's Court on Legal Issues Concerning the Trials of Contract Disputes (amended in 2020 and effective January 1, 2021), if the contract does not stipulate the default penalty for late payment, the seller may claim the loss of late payment calculated based on the one-year lending market quotation rate (LPR) at the time of the breach of contract plus 30%-50%. Article 103 and Article 104 of the Civil Procedure Law (amended on September 1, 2023 and effective January 1, 2024) stipulate litigation and pre-litigation property preservation, and Article 246 stipulates that the period for applying for enforcement is 2 years. Practical suggestions: Establish a quarterly accounting system and sign it in writing; keep all payment reminder letters on record; include payment deadlines, default interest, and attorney's fee provisions in the contract; sue and apply for preservation as soon as possible if the payment is not made on time to avoid the situation of "winning the lawsuit but not getting the money".

5. Henglue Law Firm's Reminder

When collecting debts, the most taboo thing is procrastination: it not only exceeds the window period when the client still has the ability to repay, but also approaches the three-year statute of limitations. It is recommended that enterprises make debt collection actions proactive and formalized, leaving evidence for future reference at every step; for long-term cooperative clients, they can maintain the relationship while securing the creditor's rights by means of reconciling accounts and signing repayment plans. After entering litigation, the connection between preservation and enforcement directly determines the outcome of debt collection, which can be referred to for reference.Creditor-debtor relations and enforcement case servicesUnderstand the path of investigation, control, and enforcement. If you are being owed money, it is recommended that you consult a lawyer as soon as possible, bringing along materials such as contracts and account statements. The lawyer will evaluate the cost-effectiveness of collection and litigation, and develop a phased plan to ensure that every step is taken before the statute of limitations expires and the assets change.

Q1: If a customer defaults on the payment of the goods, can I recover the money by suing them?

If there are complete evidence such as account statements and receipt slips, and the statute of limitations has not expired, the chances of winning the lawsuit are relatively high. In practice, the court often recognizes the amount of debt confirmed by both parties through account reconciliation. However, "winning the lawsuit" does not mean "getting the money back". The recovery of the debt also depends on the other party's ability to pay. When suing, it is advisable to apply for property preservation at the same time. If the other party fails to perform after winning the lawsuit, the plaintiff should apply for compulsory enforcement within two years in accordance with Article 246 of the Civil Procedure Law. Through the court's investigation and control system, the plaintiff can inquire into the defendant's bank accounts, real estate, and vehicles and dispose of them. If the other party truly has no assets, the plaintiff can further review whether the shareholders' contributions have been made in full and other additional liability paths, and then make a comprehensive decision on the strategy.

Q2: What evidence do I need to prepare to recover the payment?

The basic evidence includes sales contracts or orders, delivery notes and signing records, acceptance notes, invoices, and payment receipts; the core evidence is written materials directly confirming the amount of the debt, such as statements of account and IOUs; auxiliary evidence includes collection letters and mailing receipts, WeChat chat records, and call recordings. If there is no written contract, the delivery signing note plus the invoice and chat records can also form an evidence chain; for oral transactions only, the amount of the debt should be "put on paper" as soon as possible through reconciliation and having the other party issue a repayment commitment. The more complete the evidence is, the smoother the progress of the payment order, litigation, and enforcement will be, and the shorter the collection period will be.

Q3: How much does it cost to recover the payment?

Taking a 100,000 yuan payment as an example, the case acceptance fee, according to Article 13 of the "Measures for the Payment of Litigation Costs" (implemented on April 1, 2007), totals 2,300 yuan. If the case is handled through a simplified procedure or concluded through mediation or withdrawal of the lawsuit, the fee is halved (Articles 15 and 16), and the losing party ultimately bears the cost (Article 29); the maximum property preservation fee does not exceed 5,000 yuan (Article 14). Lawyer's letters and collection letters are relatively inexpensive and can be tried first; if the contract stipulates that the attorney's fees shall be borne by the breaching party, the winning party can also claim them from the other party after winning the lawsuit. Overall, the cost of early evidence preservation and non-litigation collection is far lower than the loss of funds caused by prolonged indecision.

Q4: If the payment is delayed, within how long must I file a lawsuit?

The statute of limitations is three years, starting from the date on which the agreed payment period expires (Article 188 of the Civil Code); each time a valid collection notice is issued or the other party promises to repay, the statute of limitations is interrupted and starts anew (Article 195). Even if more than three years have passed, the other party cannot revoke its voluntary repayment, but will lose the right to prevail if it raises a statute of limitations defense. After winning the lawsuit, if the other party fails to perform according to the deadline set in the judgment, the creditor should apply for enforcement within two years (Article 246 of the Civil Procedure Law). It is recommended to initiate written collection once the overdue amount exceeds half a year, and if the overdue amount remains unresolved after one year, evaluate suing as soon as possible and simultaneously preserve the assets.

Q5: If the client neither pays nor responds, what should I do next?

First, send an official payment reminder letter to leave a record and interrupt the statute of limitations; if the amount of the creditor's claim is clear and the other party has no substantive defense, you can apply for a payment order in accordance with Article 221 of the Civil Procedure Law. If the other party neither raises objections nor performs the payment within 15 days, you can directly apply for enforcement; if the other party raises written objections, the payment order will become invalid, and the case should be transferred to litigation and simultaneously apply for preservation. When suing, you can claim the losses of overdue payment at the same time (referring to the LPR plus 30%-50%), and after the judgment, you can use measures such as online investigation and control, auction and sale, credit blacklist, and restriction of high consumption to put pressure on the other party at every step of the process, so that every procedure serves the ultimate goal of recovering the payment and avoiding procedural stagnation.

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