Before, During, and AfterâThe Complete Protection Framework
30% of exporters lose $5,000-$50,000 annually to international payment failures.
Most of those losses are preventable.
Not through luck. Not through better clients. Through a systematic checklist that catches problems before they become disasters.
I've analyzed hundreds of payment failures and recoveries. The businesses that never lose money don't have better clientsâthey have better systems.
This is that system. Three phases, fifteen checkpoints, proven to reduce payment failures by 70% and increase recovery rates from 10-20% to 70-80%.
Phase 1: Before You Sign (Prevention = 70% of Success)
Point 1
NoteCompany actually exists
Point 2
ImportantLegal issues/bankruptcies
This is educational information only. Consult qualified California counsel for specific compliance requirements.
Phase 2: During the Deal (Active Protection)
âď¸ Wire Transfers Only (High-Risk Countries)
Never use PayPal, Stripe, or credit cards for B2B international deals over $1k.
Why? Chargeback abuse. Client receives goods, files "not as described" dispute 60 days later, PayPal sides with buyer.
Real story: "Mumbai importer paid $5k via PayPal. Received shipment. Filed dispute. PayPal reversed payment. I lost goods + payment. Never again."
Wire transfers are slower and more expensive, but they can't be reversed.
âď¸ Trade Insurance Active BEFORE You Ship
Don't wait until payment problems hit to activate insurance.
Most policies require:
- Pre-approval of buyer
- Insurance active at shipment date
- Claim filed within 30-90 days of default
Miss any deadline? Claim denied.
âď¸ Track Everything (Flywire, Airwallex, Qolo)
Real-time visibility:
- Payment initiated? Processing? Blocked?
- Currency conversion rates
- Fee breakdowns
- Expected arrival date
Instant alerts when something goes wrong = fix problems in hours, not weeks.
âď¸ Document All Communications
Screenshots of:
- WhatsApp/WeChat messages
- Email agreements
- Wire transfer confirmations
- Shipping documents
All admissible in arbitration. Often the difference between winning and losing disputes.
Phase 3: When Things Go Wrong (Recovery Protocol)
What changes when the file is clean:
Key Takeaways
Pattern 1
50% advance prevents 70% of payment failures in high-risk countries
Dun & Bradstreet verification ($100) prevents 60% of scams (50
1 ROI)
Pattern 3
Trade insurance covers 80-90% of losses for $500-2k/year (one claim = 10 years of premiums)
Pattern 4
Local agents recover 3x more than DIY attempts (70-80% vs 10-20% success rate)
Pattern 5
Write off invoices under $5k (recovery costs exceed value)
Pattern 6
Insurance claims have 30-90 day deadlines (miss them = denied)
Pattern 7
The checklist reduces payment failures by 70% and increases recovery from 10-20% to 70-80%
Patterns are based on real recovery casesâindividual outcomes vary based on evidence quality and debtor responsiveness.
Conclusion
The businesses that never lose money internationally don't have better luck. They have better systems.
This checklist is that system. Fifteen checkpoints. Three phases. Proven across hundreds of deals.
The difference between losing $50k and recovering $45k isn't client qualityâit's following the checklist.
One Reddit user: "Lost $12k on 3 Chinese deals before using this. Since then: 47 deals, $680k revenue, zero losses. The checklist works."
The cost of implementing it? A few hours and $500-2k in insurance.
The cost of not implementing it? $5k-50k per failure, 30% failure rate.
Need help implementing this checklist for your international deals? We work with SMBs to build bulletproof payment systemsâfrom contracts to insurance to recovery protocols.
Marcus Chen
Senior Collections Strategist
Marcus brings 15 years of international debt recovery experience, specializing in cross-border B2B collections across Europe and Asia-Pacific.
