The Process for Collecting Commercial Receivables

Collecting a commercial receivable involves certain preparatory steps and statutory requirements that should be followed before enforcement proceedings are initiated.

The Invoice Objection Deadline

Under Article 21/2 of the Turkish Commercial Code (TTK), if the recipient of an invoice does not object to its contents within eight days, they are presumed to have accepted those contents. This deadline creates a strong presumption in the creditor's favour when proving the existence of the receivable; if the debtor misses this deadline, it makes the collection process considerably easier.

The Importance of a Formal Notice

Sending a formal notice through a notary is advisable to put the debtor in default and to establish clearly the date from which default interest begins to accrue. In commercial matters, the interest rate can be freely agreed; if not specified in the contract, the rate applied by the Central Bank of the Republic of Turkey to its short-term advance transactions is used as the basis.

Mandatory Mediation as a Precondition for Commercial Lawsuits

Under TTK Art. 5/A, applying to a mediator before filing suit is mandatory for lawsuits seeking payment of a sum of money as a commercial receivable or compensation claim. This requirement applies only where a lawsuit will be filed; if the creditor wishes to initiate enforcement proceedings directly, there is no need to apply to a mediator.

Watch the Limitation Periods

The limitation period for commercial receivables varies according to the legal relationship underlying the claim; for example, receivables arising from a sale contract may be subject to the general or special periods set out in the Turkish Code of Obligations. If a time-barred receivable is made the subject of enforcement proceedings, the debtor may raise a limitation defence, and if accepted, the receivable becomes uncollectable.

Practical Recommendations

Keep your invoices and contracts systematically archived, send a formal notice without delay for receivables past their payment due date, and set up a system to track limitation periods. Before starting the collection process, planning together with a lawyer which legal route (litigation or enforcement) your receivable should follow prevents a loss of time and cost.

This article is for informational purposes only and does not constitute legal advice. Please contact our team regarding your specific situation.