For Exporters
Funding to Recover Foreign Buyer Defaults
A foreign buyer default is not a dead loss. It is a recoverable asset when the shipment is documented and the enforcement route is planned from where the buyer’s assets sit. LegalFund assesses export claims on documentation, jurisdiction and enforceability, and funds eligible pursuits so recovery does not drain the exporter’s working capital.
How we assess export claims
Three tests decide whether an export claim can be recovered
A foreign buyer default is not a dead loss, it is a recoverable asset when the shipment is documented and the enforcement route is planned from where the buyer’s assets sit.
1. Documentation
Can you prove the sale, the shipment and the default?
- Contract or purchase order
- Commercial invoice and packing list
- Bill of lading or airway bill, shipping bill
- Proof of delivery and buyer correspondence
2. Jurisdiction
Where and how can the claim be brought?
- Governing law and forum clause
- Arbitration clause and seat
- Where the buyer is incorporated
- Limitation timeline
3. Enforceability
Can a win be turned into cash?
- Where the buyer’s assets actually sit
- Whether an award or judgment can be enforced there
- Buyer solvency and operating status
- Realistic time and cost to recover
Export claims we review
Defaults an exporter may be carrying
If the goods were shipped and the money did not come back, the claim can be reviewed.
Enforcement route planner
Plan the route from where the buyer’s assets sit
Answer three things about your claim. You get an indicative route and a documentation score. It is a first view, not legal advice or a funding decision.
1. What does your contract say about disputes?
2. Where do the buyer’s assets sit?
3. Which documents do you have?
Enforcement of awards and judgments abroad depends on the law of the country where assets sit and on treaty status, so each route is confirmed case by case.
Why act now
Recovery should not drain the next shipment
Working capital stays in trade
Funded eligible pursuits mean legal and enforcement costs do not come out of the cash that finances your next order.
Plan before you spend
Choosing the forum without knowing where the assets are is how exporters win paper judgments that cannot be collected. We plan the route first.
Time works against you
Limitation periods run from the date of default, and buyers’ assets and operations can change. Early assessment keeps options open.
How LegalFund works
From unpaid shipment to a funded recovery plan
Send the shipment file
Contract, invoices, shipping documents and correspondence. A short note on the buyer and the default.
Assessment
We test documentation, jurisdiction and enforceability, and trace where the buyer’s assets sit. Initial view within 48 hours of the documents.
Route and funding terms
A planned enforcement route and, for eligible claims, written non-recourse funding terms.
Funded pursuit
Counsel pursues the claim. Funded costs are not repaid if there is no recovery. You stay the client.
Exporter questions
Foreign buyer default recovery: FAQs
Can a foreign buyer default really be recovered?
Often, yes, when the shipment is documented and the buyer has assets that can be reached. Recovery depends on three things: documentation, jurisdiction and enforceability. An assessment tests all three before any money is spent on proceedings.
Which documents do I need?
The contract or purchase order, commercial invoice, packing list, bill of lading or airway bill, shipping bill, proof of delivery and your correspondence with the buyer. We can start with what you have and tell you what else helps.
What if my contract has no arbitration or jurisdiction clause?
The claim is still reviewed. The forum then depends on the governing law, where the buyer is based and where the assets are. This is why the route is planned before proceedings start.
What happens if the buyer has no assets I can reach?
Then recovery is unlikely, and it is better to know that before spending on a case. Assessing enforceability first protects you from funding a claim that cannot convert to cash.
Does this affect my export credit insurance (ECGC) claim?
Check the conditions of your policy before taking steps against the buyer, since insurers often have notice and consent requirements. Tell us if you hold cover so the plan accounts for it.
What does funding cover and what size of claim do you fund?
For eligible claims, funding covers the legal and enforcement costs of the pursuit under non-recourse terms. We focus on strong claims of ₹1 crore and above.
Get started
Turn an unpaid shipment into a recoverable claim.
Send us the shipment file. We will assess documentation, jurisdiction and enforceability, and tell you whether and how we can fund the recovery.
- Non-recourse: funded costs not repaid if no recovery
- Assessment before any commitment
- Decree, award, MSME and commercial claims across India
Funding is subject to case evaluation and approval. Terms are set out in the funding agreement. This is not legal, tax or accounting advice.