What a Foreign Company Can Do Against an Italian Debtor

How to Recover Payment of Unpaid Invoices in Italy While Avoiding Delays, Mistakes and Financial Losses

When a foreign company regularly issues an invoice to an Italian company, but payment is not made within the agreed deadline, it is essential to act with method, speed and strategy.

Many foreign businesses wait too long before taking action, relying on informal promises, postponements or generic reassurances from the Italian debtor. This approach, however, can become risky: the debt may become more difficult to recover, the debtor’s financial situation may worsen and, in more serious cases, issues relating to limitation periods may arise.

For this reason, the recovery of debts arising from unpaid invoices in Italy must be handled from the very beginning with a professional, documented and legally sound approach.

BG Studio Legale assists foreign companies, entrepreneurs and professionals in the recovery of commercial debts from Italian debtors, providing legal support in Italy during the out-of-court phase and, where necessary, during judicial proceedings.

Unpaid Invoices in Italy: Why It Is Important to Act Quickly

An unpaid invoice should not be treated merely as an administrative delay. In many cases, non-payment is the first warning sign of the debtor’s financial difficulty or of a deliberate intention to postpone payment.

For a foreign company, the issue is even more delicate, as there may be language barriers, geographical distance, differences between legal systems and difficulties in understanding which legal tools can be used in Italy.

Acting promptly makes it possible to formally demonstrate the intention to recover the debt, interrupt any applicable limitation periods where the legal requirements are met, place the debtor in default, claim default interest and recovery costs, increase pressure on the debtor, properly prepare any future court action and prevent the debt from being neglected until it becomes increasingly difficult to recover.

The first mistake to avoid is relying only on informal reminders by telephone, WhatsApp or generic emails. Every request must be traceable, precise and drafted in a way that can also be used in a later phase if necessary.

First Step: Check the Documents, Contract and Evidence of the Debt

Before sending a formal payment request, it is necessary to review the available documentation.

In particular, it is advisable to collect the contract or commercial order, the accepted quotation, the order confirmation, the invoices issued, any transport documents, proof of delivery of the goods or services, email correspondence with the debtor, any acknowledgements of debt, any promises of payment, the general terms and conditions of sale and proof of the payment deadline.

This phase is essential because, in debt recovery, it is not enough to simply state that an invoice has not been paid. It is necessary to prove the existence of the commercial relationship, the service or supply performed, the amount due and the payment deadline.

Well-organised documentation significantly strengthens the claim and allows the lawyer to set up a more effective strategy.

First Written Payment Request: The First Formal Step

The first written payment request should be clear, professional and not excessively aggressive.

The aim is to obtain voluntary payment, giving the debtor a short but reasonable deadline to comply.

This first communication should indicate the details of the creditor company, the details of the debtor company, the number and date of the unpaid invoices, the amount due, the original payment deadline, a precise deadline for payment, such as seven or ten days, the bank details for payment and a warning that, in the absence of payment, further action will be taken.

This first request also has a strategic function: it allows the creditor to assess the debtor’s reaction. If the debtor pays, the matter is resolved quickly. If, on the other hand, the debtor ignores the communication, raises generic objections or continues to delay, it is advisable to move to a more incisive phase.

Second Written Request: Formal Notice of Default, Interest and Recovery Costs

If the first request remains unanswered or unsuccessful, it is advisable to send a second written request, more formal and structured.

This second step should contain a proper payment demand with a final deadline, also referring to the consequences of continued non-payment.

At this stage, it is advisable to indicate the principal amount of the debt, the interest already accrued or accruing, the final deadline for payment, a warning that recovery costs will also be claimed in the event of non-payment, the possibility of proceeding out of court and, if necessary, through judicial action, as well as a reservation of the right to recover the full amount of the debt, interest, costs and any further damages.

In commercial transactions between businesses, the creditor may be entitled to default interest under Italian rules on late payments, as well as reimbursement of the costs incurred to recover the debt.

This aspect is particularly important for foreign companies, because Italian debtors often attempt to pay only the principal amount, ignoring interest and costs. A properly structured legal request allows all sums due to be claimed and valued correctly.

Out-of-Court Debt Recovery: Negotiation, Legal Pressure and Repayment Plans

Before going to court, it may be useful to attempt an out-of-court debt recovery phase.

Out-of-court debt recovery consists of professionally managing the claim without immediately starting legal proceedings. During this phase, the lawyer formally contacts the debtor, requests payment, assesses any objections and, where appropriate, negotiates an agreement.

Possible solutions may include immediate payment of the full amount, payment by a specific date, an instalment repayment plan, a written agreement with acknowledgement of debt, immediate partial payment followed by the balance or additional guarantees in favour of the creditor.

This phase can be very effective, especially when the debtor understands that the foreign creditor is assisted by a lawyer in Italy and that failure to pay may result in further costs, interest and legal action.

However, an out-of-court agreement must be drafted carefully. It is not sufficient to accept a generic promise of payment. It is preferable to formalise in writing the amount due, the deadlines, the interest, the consequences of non-payment and, where possible, an express acknowledgement of the debt.

Can Recovery Costs Be Claimed from the Debtor?

In commercial transactions, the creditor may also claim reimbursement from the debtor of the costs incurred to recover the debt, within the limits and under the conditions provided by the applicable law.

This means that, where the legal requirements are met, the debtor should not simply pay the overdue invoice, but may also be required to pay interest and costs arising from the delay.

For this reason, already in the second written request, it is advisable to specify that, in the event of further non-payment, any subsequent recovery activity will be charged to the debtor, within the limits permitted by law.

This wording increases negotiation pressure and prepares the ground for any subsequent action.

Limitation Periods for Unpaid Invoices: How Long Does the Creditor Have to Act?

One of the most important aspects of debt recovery is the limitation period.

As a general rule, many commercial debts arising from contracts, supplies or services are subject to an ordinary limitation period of ten years, although in certain cases a shorter period, such as five years, may apply, unless the law provides for different terms for specific situations.

However, this issue should never be approached automatically. The duration of the limitation period depends on the nature of the debt, the type of relationship, the available documentation, any acknowledgements of debt and any acts interrupting the limitation period that have already been carried out.

Interest may also be subject to limitation periods different from those applicable to the principal amount.

For this reason, it is essential to have unpaid invoices reviewed promptly by an Italian lawyer, especially when the debt dates back several years.

A very common mistake is to believe that, because the debtor has repeatedly promised to pay, the debt is automatically protected. This is not always the case. Verbal promises or informal messages may not be sufficient. It is necessary to assess, case by case, whether there are valid acts capable of interrupting the limitation period or legally relevant acknowledgements of debt.

When to Move to Judicial Proceedings

If the Italian debtor does not pay even after formal reminders and the out-of-court negotiation does not produce results, it may be necessary to consider legal action.

In Italy, when the debt is supported by written evidence, one of the most commonly used tools is the application for a payment order, known as a “decreto ingiuntivo”. This procedure allows the creditor to ask the court to issue an order requiring the debtor to pay.

For foreign companies, in the presence of cross-border relationships, the European order for payment procedure may also be considered, where the relevant conditions are met.

Before starting legal proceedings, it is always advisable to carry out a cost-benefit assessment. It is not enough to be legally right: it is also necessary to understand whether the debtor is actually solvent and whether the action can lead to a concrete recovery.

Why a Foreign Company Should Rely on a Lawyer in Italy

For a foreign company, recovering a debt in Italy can be complex without knowledge of the language, procedures, commercial practices and local legal tools.

An Italian lawyer experienced in international matters can quickly review the documentation, send effective formal communications, calculate interest and additional sums due, manage negotiations with the Italian debtor, assess limitation periods, prepare secure payment agreements, start judicial proceedings where necessary, coordinate the strategy with the foreign client and avoid formal mistakes that could weaken the recovery action.

The involvement of a lawyer in Italy sends a clear message to the debtor: the creditor is no longer willing to wait and intends to recover the sums due through concrete legal tools.

What to Do If an Italian Company Does Not Pay an Invoice

If your company has issued invoices to an Italian client and has not received payment, the recommendation is not to wait.

The correct course of action is to collect all documentation, verify the amount, deadline and limitation period, send a first written payment request, send, if necessary, a second formal request claiming interest and costs, attempt out-of-court recovery with legal assistance and consider judicial action if the debtor continues not to pay.

Each phase must be documented and strategically structured, because even a simple communication can become important in a subsequent procedure.

BG Studio Legale Assists Foreign Companies in Debt Recovery in Italy

BG Studio Legale provides legal assistance to foreign companies that need to recover debts from Italian businesses, professionals or debtors.

We analyse the documentation, assess the most effective strategy and intervene through formal communications, out-of-court negotiations and, where necessary, judicial proceedings in Italy.

If your company has unpaid invoices against an Italian debtor, you can contact us for an assessment of your case.

Acting promptly can make the difference between a recoverable debt and a debt that becomes increasingly difficult to collect.

Do You Have Unpaid Invoices from an Italian Company?

Contact BG Studio Legale and send us copies of the unpaid invoices, the contract, order or quotation, any emails exchanged with the debtor, proof of delivery of the goods or services and any reminders already sent.

Our firm will review the documentation and indicate the most suitable strategy to proceed with debt recovery in Italy.