Debt Collection in Retail & Fashion
Debt collection in retail and fashion is becoming increasingly complex. Suppliers and brands are facing a steady decline in payment discipline, as shop owners and retail partners delay or default on invoices more frequently. Tight margins, seasonal pressure, and shifting consumer demand often leave businesses hesitant to act, even as outstanding receivables continue to grow.
At Bierens, we understand the dynamics of the retail and fashion industry. Our specialists help you recover unpaid invoices efficiently and decisively, while safeguarding commercial relationships and brand reputation.
With experience dating back to 1952 and an in-house team of over 115 international lawyers and debt collection specialists, we support your business in maintaining both financial stability and long-term partnerships.
Payment behaviour in retail and fashion
Certain products within the fashion and retail industry are sold seasonally. Many shops already plan a year in advance and decide which types of clothing pieces and brands they wish to sell in their stores.
For example, in June, shop keepers will already decide which products they will sell in their stores in December and will purchase the products from suppliers by placing orders. Our experience has shown that business relations among retail and fashion suppliers and shop owners are built on trust. It is a competitive field that is prone to seasonal products.
When combined, these factors constitute significant vulnerabilities from a credit risk perspective, making debt collection in retail and fashion a vital tool to ensure your company remains financially healthy.
About debt collection in retail and fashion
Generally speaking, payments within the retail and fashion sector are better regulated than those in many other sectors. In most cases, your customer will receive an order confirmation. Half a year later, you will deliver the products and send the invoice.
However, it can also happen that the shop decides that they no longer want the stock and cancel the order. For example, you received an order to supply shoes to a store. You have produced the goods and ensured that all necessary arrangements have been made. Just before dispatching the goods, your customer cancels the order. As products are seasonally bound, their value can rapidly decrease over time.
Now that your customer has cancelled the order, you are left with an unsold stock of shoes that may no longer be fashionable in three months’ time. Therefore, you will have to take immediate action. Our lawyers can help you recover your unpaid invoice through the very best debt collection in retail and fashion.
How to deal with an unpaid invoice in retail and fashion
When you receive an order from a customer, a payment term of 60 days usually applies. In case of cancellation and if legal action is necessary, our lawyers will always investigate the situation and circumstances. For instance, in your contract you may have already stipulated that cancellation is not possible or comes with a fine.
If your customer still refuses to pay, our lawyer will investigate their contractual obligations, the type of products that were produced and if your company has suffered from any damages. Based on your specific case, our lawyers will provide you with honest and practical implications in order to retrieve your unpaid invoice.
Debt collection disputes in retail and fashion
Payment conflicts are not always caused by a simple outstanding invoice. In our experience, such situations may arise from various kinds of complex issues. An example: a supplier has made tailored undershirts for a store. A discussion arises based on whether the sizes are correct. The invoice is sent, but the customer refuses to pay. This means that the business will experience a loss, as the goods cannot be re-sold.
Alternatively, the customised goods may simply be returned, in which case the supplier finds out that the shop owner is dissatisfied only after the goods have been returned. By this time however, it is already too late to take any action. The customer refuses to pay and has returned the goods without informing the supplier. Once again, the supplier is left without payment and with unsold stock.
Other common payment conflicts may arise if your company operates under different brand names. When a customer receives an invoice, this may lead to confusion and they may refuse to pay the company they claim they have never done business with. Regardless of what kind of unpaid invoice your company may be facing, our lawyers have the right resources and knowledge to help you.
How can we help you?
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Our working method – No Cure No Pay
During the extrajudicial phase, we work based on No Cure No Pay. We believe it is important to try to solve the case during this phase, without court intervention. You will only have to pay €185 for administrative costs. Should legal action be necessary, then we can help you perform a credit check and analyse your debtor’s financial status. We will discuss the costs with you and will only start working on your case after receiving your permission.
International debt collection in retail and fashion
If your client is located abroad, you may also encounter an unpaid invoice. Our team of international experts can get your debtor to pay. They have the knowledge and experience with both national and international debt collection in the retail and fashion industry. Based on our experience we have seen that many agreements are made with international customers. If you need any help with regards to agency agreements, distribution agreement or intellectual property, you can contact us for more information.
Advantages when hiring our debt collection lawyers
Debt collection lawyers in retail and fashion
Our lawyers understand the payment behaviour of companies in the retail and fashion industry. We know how such agreements should work in theory and in practice, and we have access to the most effective debt collection measures. By handing over your debt collection case to a specialised debt recovery law firm, you can resume your regular operations while we focus on recovering your invoice.
Our specialists
For years, Bierens has helped many companies across different industries. Our team of debt collection lawyers also specialise in (international) debt collection in retail and fashion. Whether you have a debt collection case in your own country or abroad, our lawyers have the expertise and knowledge to help you.
Do you have a client in the retail and fashion sector who has left your invoice unpaid? Has your client cancelled an order meaning you are left with unsold stock? Then send us your invoice right away. Our specialists will immediately start working on your case.
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