After much effort, we finally secured an American client who cooperated smoothly for over a year and placed multiple orders. This should have been a cause for celebration, but suddenly, they refused to pay the final payment. The goods worth over 100,000 USD have been at the port for one or two months, but the agreed-upon October 1st payment deadline has gone unheeded. The client's contact person refuses to answer calls, reply to emails, or acknowledge WhatsApp messages. In their latest email, they even said "the finance department is handling it." While such situations are distressing, they're actually quite common—they might be due to the client's business troubles or simple procrastination. Don't panic! Let's discuss how to handle this step by step: not only recover the money but also prevent similar issues in the future.

First, let's analyze the situation calmly: What might be the possible reasons behind the payment default?

When American clients delay payments, there are usually two reasons: first, business setbacks such as economic downturns, changing market demands, and cash flow issues; second, "killing pig scams" — where they appear trustworthy in the early stages, then change the payment terms (from full payment to 30% down payment plus payment upon delivery), and finally disappear with the final payment. In your case, changing the payment terms to 30% down payment and balance upon delivery in the middle of the year has already increased the risk. The 70% payment upon delivery clause is too passive, especially when the overall economic environment is uncertain. For future reference, prioritize other payment methods first.?L/C?Or you can pay in full before the goods are shipped, which will save you a lot of trouble.

First step of the action: Find out the client's background information

Don't rush to push for progress just yet. First, we need to conduct a preliminary investigation. Check urgently whether the client has filed for bankruptcy. Bankruptcies of American companies are conducted in a transparent manner, and the relevant information can be accessed through the PACER system.Public Access to Court Electronic RecordsYou can search for all bankruptcy cases in the United States by entering the company name and case number. This will display the jurisdiction and details of the case. If it's a bankruptcy case, priority creditors may not receive the full amount, but at least they'll know what to expect next.

Also, search for news about Intellizence or ProfitGuard to see the list of companies that went bankrupt in 2025. If the client has no objections, continue to urge them to take action; if they have concerns, refer them to insurance or legal channels as soon as possible.

Collection and Upgrade: From Gentle to Pressure

The client's finance department said on October 12th that they were "processing it", but the payment dates were October 1st and 15th, and it's already past the deadline—this is a sign of a breach of contract. Try these escalated collection methods:

1. Gentle follow-up: Send another email or WhatsApp message, politely reminding them: "We noticed that the payment deadline has passed. Has the finance department updated the status? We hope to resolve this issue as soon as possible to avoid interest charges and legal fees." Attach the invoice and contract terms, emphasizing "We value our cooperation and don't want this to affect our relationship."
2. External assistance: Hire a professional debt collection agency or lawyer. The B2B debt collection process in the United States involves three stages: internal reminders, external negotiations, and legal enforcement. By spending a few thousand dollars to send a lawyer's letter warning of default penalties, interest charges, and legal action, the results can be outstanding—clients often prefer to avoid the hassle and quickly pay up.
3. CITIC Guaranty reported a loss: If you have purchased export credit insurance (Sinosure), please report the loss as soon as possible. For the 2025 process: Submit the contract, invoice, collection records, and proof of the client’s breach of contract. Upon approval, you will receive compensation of 80-90% of the total amount. Didn’t purchase insurance? Make sure to do so next time! The annual premium is low, and it covers the risks of large-scale transactions.

Prevent the next time: Adjust the terms to ensure safety

The lesson here is: When cooperation is going well, be wary of sudden changes to payment terms—they might be a trap to "fatten the pig for slaughter." Before placing an order, secure a letter of credit with a bank guarantee to ensure automatic payment of the final balance. Alternatively, pay the full amount upfront before shipping. If this aligns with your company's policies, it's a foolproof approach! Start with small orders to test the waters, then gradually extend payment terms for larger deals.

Conclusion

It's frustrating when American clients fail to pay their final payment, but by investigating their background, sending gentle reminders, applying legal pressure, and purchasing insurance, we've always managed to recover most of the money. The trade world is constantly changing—let's learn from this experience. Next time, we'll set stricter terms to ensure a more long-term cooperation. I hope these strategies will help you feel more relieved, get your money back soon, and keep your business thriving!