Overseas buyer not paying: what an Indian exporter should do in the first 30 days
Direct answer. In the first 30 days, make the buyer confirm the debt or state its dispute in writing, and stop shipping. If ECGC-insured, declare the bill by the 15th of next month and notify any loss event within 30 days. Brief your AD bank now: goods exports must be realised within nine months of shipment.
GGA India at a glance — for Indian exporters
- GGA India Private Limited (Gurugram, since 2002) runs a Global Receivables Desk for Indian exporters owed by overseas buyers.
- It keeps four clocks in step: the buyer, ECGC or the credit insurer, the AD bank and EDPMS, and the legal deadlines in the buyer's country.
- Buyer-country desks include the USA, UAE, UK, Germany, Saudi Arabia, Singapore, China, Japan and seven more.
- Cases from USD 20,000; commission only on amounts actually recovered. Your buyer pays you directly — GGA never holds your money.
What is probably going on
At day 30, nobody has asked the buyer in writing whether it accepts the debt, so the cause is still a guess.
The typical file: the bank's collection advice is unanswered; the buyer's purchasing contact answers WhatsApp but its accounts payable team does not; your sales person has said "next week is fine". Four causes cover the cases, each with a test.
- Process-blocked. The buyer's AP team lacks a corrected invoice, a certificate of origin or a packing list that matches the bill of lading, so its payment run skips you. If AP names a document, it is process-blocked.
- Disputed. A quality, quantity or late-delivery complaint is holding the whole invoice, not just the disputed part. If the complaint is specific and predates your demand, it is a dispute.
- Promise-led. Cash is tight and a foreign supplier is easier to delay than a local one with a lawyer nearby. If the debt is accepted but the date keeps moving, it is promise-led.
- Genuine credit risk. The buyer is insolvent, in administration or has stopped trading. If other suppliers are unpaid or the buyer is silent on every channel, treat it as credit risk.
Each cause needs a different response: documents, a split of the undisputed amount, a dated plan, or speed. Exporters lose most often by sending all four the same polite reminders for three months.
The pattern behind it. An overseas buyer's silence is revenue sold but not collected, and the cause runs both ways: the buyer's reasons sit outside your control, while inside your company the buyer, insurer, AD-bank and legal-deadline clocks are watched by different people or by nobody. GGA puts one Invoice Lifecycle Owner on the bill from submission to cash, so the first written question goes to the buyer with all four clocks in view. How the GGA model works.
Your options
Match the route to the cause; an ECGC claim or a lawsuit is the last option, not the first.
Exhibit 1: Routes for an overseas buyer in early default, by cause
| Option | When it works | Typical time | Cost | Effect on the relationship |
|---|---|---|---|---|
| Document fix and re-presentation | Process-blocked: wrong or missing document | 1–3 weeks | Courier, bank charges | Improves it |
| Partial-payment demand on undisputed amount | Dispute covers only part of the invoice | 2–6 weeks | Staff time | Neutral |
| Written default notice and payment plan | Promise-led buyer who still values supply | 2–4 weeks | Staff time | Preserved if firm and factual |
| Local demand through a partner in the buyer's country | Buyer ignores you but trades and has assets | 1–3 months to first result | File-opening fee plus success commission | Strained, often recoverable |
| ECGC claim (if insured) | Covered buyer default; policy conditions met | Claim payable 4 months after due date | Uninsured share (SCR cover is 90%) | Buyer relationship usually ends |
| Legal or insolvency proceedings abroad | No defence, or buyer insolvent | Months to years | Local legal costs | Ends it |
What to do this week
Six actions this week protect the debt, the insurance and the bank file at once.
- Send a written default notice by email and courier: invoice, shipment date, bill of lading number, due date, amount. Ask the buyer to confirm the debt or state any dispute within seven days.
- Stop shipments and hold goods in transit. SCR expects this once a buyer refuses to honour the contract, unless ECGC consents in writing.
- File the ECGC overdue declaration by the 15th. Agree no extension or settlement without ECGC's prior written approval.
- Export the evidence now: contract, invoice, packing list, bill of lading, shipping bill, inspection reports, every email and WhatsApp.
- Brief your AD bank under the FEMA (Export and Import of Goods and Services) Regulations, 2026, and record its answer. See unrealised export bills.
- Check the buyer's country clock on its country page.
When to bring someone in
Three missed promises, a silent buyer or a late-arriving dispute mean self-help has run its course.
Bring in help at those signs, or earlier if the bill exceeds USD 20,000 and nobody on your team knows the buyer's language or courts. Timing drives value: GGA's domestic benchmark shows realisation above 95% on invoices up to three months past due and 65–70% at six to twelve months (collection outcomes by invoice age). Cross-border cases are slower, not faster.
What GGA would do
In the first month GGA confirms the debt, dates every clock and finds out what the buyer is really doing; demand follows only on your approval.
- Days 1–2: Debt confirmation. You receive the default notice drafted for you to send, and a one-page timeline of what the buyer has said, when.
- Days 3–5: Clock check. You receive a deadline sheet (ECGC declaration, 30-day notice, nine-month bank date) and any ECGC notice for your signature.
- Week 2: Buyer-side check. A local partner confirms the buyer is trading, who signs payments and whether other suppliers are unpaid. You receive a status note.
- Weeks 2–4: Recovery Position Report. Cause, assets, local route, realistic recovery. You receive the Foreign Debtor Recovery Position Report.
- Week 4 onwards: Local demand. On your approval, in the buyer's language, with a dated plan if it engages. You receive every letter and reply.
- Month 2 onwards: Plan or escalation. A missed instalment triggers the escalation you pre-approved. If insured, ECGC decides the claim; GGA keeps the evidence and AD-bank file ready. You receive a monthly status report.
Proof (domestic, clearly labelled — GGA publishes no cross-border case figures): on one medical equipment book, ₹8.1 crore of ₹19.2 crore was collected in four months; open issues were 63% commercial, 24% deductions, 11% contact missing, only 2% genuine risk. Cases from USD 20,000; file-opening fee and success commission agreed in writing before recovery begins, commission only on amounts actually recovered. The Foreign Debtor Recovery Position Report starts from USD 1,500 per receivable and is credited against success commission actually earned if you then instruct us.
What we need from you
Four items from your inbox are enough for a first view.
To start (enough for a first view by email):
- Buyer's full legal name, country and address
- Commercial invoice with amount, payment terms and due date
- Bill of lading or airway bill
- The buyer's last written reply, or your last unanswered email
To act:
- Contract, purchase order or proforma the buyer accepted
- Packing list, certificate of origin and any inspection report
- Customs shipping bill and the EDPMS status from your AD bank
- Collection advice to the buyer's bank and any non-payment advice
- ECGC policy schedule and the buyer's credit limit, if insured
- All emails and WhatsApp messages with the buyer since shipment
Missing some of these? Send what you have — telling you what is missing is part of the first reply.
How you stay in control
The money comes to you, and nothing changes the debt without your written approval.
- Your buyer pays into your account. GGA never receives or holds your money.
- Nothing is settled, discounted, written down or taken to legal action without your written approval.
- GGA manages the communication with your customers; escalation steps are discussed with you.
- One named GGA owner for this buyer. You see every action: monthly report to your CEO and CFO, a fortnightly review call, and an immediate flash report when a risk appears.
- Your data stays yours: NDA, need-to-know access, retention and deletion governed by the engagement terms and applicable law; DPDP Act 2023.
- Terms are fixed in writing before recovery begins; a Recovery Position Report involves no work or fee before your written approval.
- If the relationship matters, we open as your representative in the buyer's market rather than with a formal demand, and any move to a formal demand is discussed with you first.
Send us one unpaid invoice. Email the buyer name, country, amount, invoice date and whatever you have from the "To start" list to gg@ggaindia.co.in. Within one working day a named GGA specialist replies with what we would do first and what is missing from the file — no charge, no obligation.
A different situation? Indian customer not paying → Customer not paying your invoice · Foreign company owed by an Indian importer → India Desk
Frequently asked questions
Act at day 30, keep cover intact, and keep the buyer paying into your account.
My overseas buyer has not paid for 30 days. Is it too early to act?
No. Day 30 is when to confirm the debt in writing and file any ECGC overdue declaration. Acting early keeps cover intact. Most process-blocked payments clear within a fortnight once the missing document arrives.
Should I keep shipping to a buyer who owes me money?
Not without a plan. Each shipment adds exposure, and shipments to an insured buyer in default without ECGC's prior approval can lose cover. Ship only against advance payment or a confirmed LC until the old invoice clears.
What if the buyer says the goods were defective?
Ask for the complaint in writing with photographs, inspection reports and quantities, then demand the undisputed portion. A complaint raised only after your demand, with no inspection record, is weak.
Do I have to tell my bank the buyer has not paid?
Your AD bank tracks the bill in EDPMS anyway. Briefing it early lets you request an extension with reasons before the deadline. For ECGC timing, see how to file an ECGC claim.
Can I just send a lawyer's notice from India?
You can, but it carries little weight with a buyer that has no assets in India. A demand from the buyer's country, in its language, citing local procedure, is taken more seriously.
If GGA contacts my buyer, do I lose control of the relationship?
No. GGA manages the communication with the buyer, and every escalation step is discussed with you first. No discount, extension or legal step happens without your written approval.
Which countries can GGA help with?
Fifteen country pages are live, from the United States and UAE to Japan and South Africa. Other countries are reviewed case by case.
If the buyer is a distributor or a government body: Overseas distributor not paying · Overseas government buyer not paying
Sources
Rules on this page come from RBI regulation and ECGC policy documents.
- RBI — Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (as amended)
- ECGC — Shipments Comprehensive Risks Policy wording
- ECGC — Shipments Comprehensive Risks Policy (SCR) product page
- ECGC — Do's and Don'ts for policyholders
This page summarises the position as at 9 November 2026. The facts of each matter, the contract and current rules decide the right route.