The cheapest recovery is the one that never starts. Not because a contract “guarantees” payment — it does not — but because a badly written deal leaves the creditor without evidence, without a clear due date, and without an internal reason to stop deliveries.
This article explains structure: what a commercial contract must hold so you can claim payment. The tactical list, with wording examples, is 10 clauses useful on non-payment. Reading your contract remains the consulting service.
First: who you are signing with
A well-written contract does not fix a partner you never checked. Before trade credit, long terms or a new volume, at least confirm the company exists, is not in liquidation and is not already accumulating cases as a debtor. References from other suppliers help where registers are silent.
Do not turn this page into a creditworthiness guide: the assessment mandate is creditworthiness review.
What the contract structure must hold
Length does not protect you. A few pieces do — and if they are missing, recovery becomes heavy:
- Who owes what, by when — a calculable due date, not “30 days from delivery” without saying what delivery is
- Proof of performance — acceptance, handover; without them the debtor contests receipt
- How notice is given — agreed addresses (including email) for demands and termination
- What happens on delay — penalties or interest, acceleration, the right to stop deliveries
- Security, where exposure warrants it — pledge, surety, advance, retention of title; not mandatory in every small contract
Sample wording and typical mistakes sit in the 10-clauses article. Here the logic remains: the contract should leave you an identifiable claim, not an argument about “what was meant”.
Documentary discipline and the internal flow
A clause does not hold if nobody issues the invoice on time, asks for a signed acceptance note, or watches the due date. A short internal flow helps: who approves trade credit, who tracks arrears, who stops shipment after X days of delay. Without that discipline the whole contract is theory.
Receivables insurance exists as a separate tool where the cost makes sense. It is not a substitute for the contract and it is not a service we sell here.
After signature: monitoring, not hope
The initial check is not enough. A partner who paid in 15 days can drift to 60 without telling you. Watch due dates, repeated arrears and changes of management or registered office. At the first signals, reduce exposure — do not wait for it to “sort itself out”.
What a contract does not do
It does not cut risk by an advertised percentage. It does not replace the court. It does not automatically turn a termination or penalty clause into an enforceable title. Effect depends on wording, evidence and the file. That is why consulting reads your contract, not a generic list.
For a reading of the documents, use prevention consulting. This article stays informational.