1. How to deal with foreign customers who are in arrears of payment 1. Get accurate information on overdue payments in a timely manner. The following situations occur to the customer, indicating that the payment is likely to be overdue: (1) Various excuses are used as reasons for not being able to pay immediately within the payment period stipulated in the contract, such as the subject matter is defective or defective, the subject matter does not conform to the contract, and the payment check has been sent, etc.; (2) Requesting for deferred payment, installment payment or the issuance of a usance draft, promissory note, etc. due to temporary difficulties in capital turnover; (3) Requesting to continue to purchase goods on credit or requesting an increase in payment when the previous payment has not been paid off. Large credit transaction volume. At this time, the company should try its best to investigate and understand the customer's credit status and operating conditions at that time, analyze whether the customer intends to default on payment overdue, and require the customer to sign a repayment plan. On the one hand, confirm the other party’s true intention, and on the other hand, prepare for the implementation of debt recovery measures. 2. Take timely and effective methods to pursue overdue debts. There are two ways to recover: self-recovery by the business department and legal recovery. The first problem to be solved during the self-purchase process is the conflict between subsequent business opportunities and current payment collection. If the customer is in temporary financial difficulty and defaults, and has a good repayment attitude, the company can take actions to try its best to help the customer tide over the difficulties. . If a customer's financial situation deteriorates or serious operating difficulties occur or there are major changes in senior management and the company defaults, the company should closely observe the development of the customer's situation. When the customer's situation deteriorates to the point of irrecoverability, the company should immediately take effective judicial procedures and vigorously Pursue. This is to prevent the defaulting party from evading debts by evacuating funds, transferring property, filing for bankruptcy or deceptively canceling the enterprise. "Civil Code" (effective from January 1, 2021) Article 6756868 The borrower shall return the loan according to the agreed time limit. If there is no agreement on the loan period or the agreement is unclear, and it cannot be determined according to the provisions of Article 510 of this Law, the borrower may return it at any time; the lender may urge the borrower to return it within a reasonable period of time. Article 6766868 If the borrower fails to repay the loan within the agreed time limit, he shall pay overdue interest in accordance with the agreement or relevant national regulations. 2. Methods to prevent foreign customers from defaulting on payment 1. Contract signing period The contract signing period refers to the period before the contract is signed. The main task of this period is to investigate the subject situation of the other party, especially the credit status of the other party, including operating conditions, capital structure, commercial credit and solvency, etc. A contract signed based on true investigation results will definitely increase the chance of timely payment. When old trading partners require changes in the industry or the trading habits of both parties (for example, if the request increases, the transaction amount will be reduced, the payment period will be extended or shortened, and the payment method will be changed, etc.), it is best to conduct a credit investigation on them to ensure that the customer's credit status has not fundamentally changed. Sexual changes will increase the possibility of recovery of receivables. There are generally two methods of credit investigation: direct investigation and indirect investigation. Direct investigation includes visiting the customer's business premises, interviewing key management personnel, and reviewing financial information in recent years. Conduct rational analysis of financial information and make an overall preliminary evaluation of the customer's financial status and assets; visit business premises to understand the customer's team spirit, work efficiency, etc.; interview managers to flexibly verify and verify the authenticity of various information and accuracy. Indirect investigations include investigating the customer's registration and annual inspection status with the Industrial and Commercial Bureau where the customer is located; understanding the customer's tax payment status in recent years with the tax administration department where the customer is located; and understanding the customer's industry status and business reputation from social groups such as industry associations and legal entities. . The Supreme People's Court has opened a national court information query website for persons subject to execution. You can also use this website to check whether customers have applied for compulsory execution by others due to disputes such as arrears. 2. Contract performance period There are two main things that need to be done well during this period. First, keep all delivery vouchers and other materials related to the contract, and sign statements in a timely manner in stages to provide a basis for the legal existence of claims. Second, take appropriate credit protection measures, such as exercising security rights in accordance with the law, unsafe defense rights, simultaneous performance of defense rights, subsequent performance of defense rights, etc., to reduce the risk that the payment for goods cannot be partially or fully realized due to customer reasons. The correct exercise of security rights will become one of the important guarantees to prevent this risk. When a company requires guarantees for debts, it must also consider business opportunities. Customers are sometimes unwilling to provide guarantees. If the company insists on guarantee requirements, it may lose one. It seems like a good business opportunity. When encountering such a situation, we must carefully weigh the pros and cons and make a choice. 3. The default collection period has exceeded the payment period stipulated in the contract, and the customer still has not paid the payment, and has not issued or signed the repayment plan, statement, supplementary agreement and other written materials approving the payment, which shows that the company Unfortunately, the payment for the goods has been maliciously defaulted. At this time, the company should immediately carry out default collection work. The key to this work is to promptly and accurately grasp the information on overdue payment and adopt flexible and diverse methods to collect the payment.