SECTOR INTELLIGENCE / MANUFACTURING

    Your machinery crossed the border. Your payment did not.

    Manufacturing debt collection involves long production cycles, complex supply chains, retention clauses, and debtors who claim delivery defects three months after installation. We have heard every excuse in every language. We collect regardless.

    WHY MANUFACTURING DEBT IS DIFFERENT

    Extended payment terms

    Manufacturing contracts routinely specify 60-90 day payment terms. By the time the invoice is overdue, the debtor has had the machinery operational for months. They have revenue. They have cash flow. They also have a procurement department trained to delay payment as long as possible.

    Cross-border complexity

    A German press manufacturer sells to a Brazilian agribusiness. The contract is in EUR. The buyer pays in BRL. The delivery was FOB Hamburg. The buyer claims a defect discovered in Cuiabá. Three jurisdictions, two currencies, one unpaid invoice. This is standard for manufacturing.

    Retention and warranty disputes

    Manufacturing contracts often include retention clauses — 5-10% withheld until commissioning or warranty period expiry. Debtors weaponise these clauses, withholding 100% of the invoice while citing a 5% retention right. We distinguish between legitimate retention and payment avoidance.

    Supply chain dependencies

    Manufacturing debtors frequently blame their own customers. 'We cannot pay you because our client has not paid us.' This chain of dependency is the most common excuse in manufacturing debt. It is also the easiest to counter — because we trace the entire chain.

    HOW WE HANDLE MANUFACTURING CASES

    Intelligence-first assessment

    Before contact, we verify: Has the debtor filed recent accounts showing revenue growth? Have they purchased new equipment? Are they bidding on new contracts? A debtor claiming cash flow problems while expanding their production line is not a debtor who cannot pay.

    Jurisdiction-matched legal instruments

    German Mahnbescheid for EUR 32. Italian decreto ingiuntivo with provisional enforcement. Brazilian Execução that skips trial. We match the legal instrument to the debtor's jurisdiction — not the other way around.

    Defect dispute resolution

    When the debtor claims a product defect, we assess the claim. Does the evidence support it? Was the defect reported within the contractual window? Is the claimed defect proportionate to the withheld amount? Manufacturing disputes require technical analysis, not just legal pressure.

    88%
    COLLECTION RATE
    52d
    AVG RESOLUTION
    €430K
    AVG CASE VALUE
    DE, IT, BR, CN
    TOP JURISDICTIONS

    JURISDICTION FOCUS

    Manufacturing debt concentrates in industrial economies. Germany (machine tools, automotive components), Italy (machinery, textiles), Brazil (agricultural equipment, industrial supplies), and China (electronics, components) are our most active manufacturing jurisdictions. Each has different payment cultures, legal instruments, and enforcement mechanisms — and we operate natively in all four.

    DECLASSIFIED | MANUFACTURING | DE → BR

    CreditorGerman press manufacturer (Stuttgart)
    DebtorBrazilian agribusiness (Cuiabá, Mato Grosso)
    Debt€430,000
    DisputeDebtor claimed hydraulic defect discovered 4 months post-delivery

    InterStation's São Paulo team inspected the maintenance logs (in Portuguese). The "defect" was caused by incorrect operator calibration — not a manufacturing fault. Execução filed. BacenJud located funds. 96% collected in 47 days.

    "Cross-border dispute resolved. Business relationship preserved. The debtor now pays on time."

    INTERSTATION SECTOR FILESEC-MFG-2026

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