Turkish Supplier Took Your Advance Payment but Did Not Deliver: What Can You Do?

Turkish Supplier Advance Payment Recovery at a Glance

If you paid a Turkish supplier in advance and the goods never arrived, do not assume that a new promise of delivery protects your position. Review the order, invoice, bank records, delivery terms and messages together. The same facts can support a repayment demand, an enforcement strategy or urgent asset protection, but the correct sequence matters.

Is a Turkish Supplier Advance Payment Refundable?

Not automatically. A supplier's failure to deliver may be a breach, but whether the buyer can terminate the contract and demand repayment depends on the agreed delivery obligation, any grace or cure period, the parties' communications and the law governing the sale.

For an international sale of goods, the CISG may apply when its conditions are met. Türkiye is a CISG contracting state, but the Convention's application, any exclusion and the remedies available must be checked against the parties' places of business and the contract.

A missed date may require a final deadline or other notice before cancellation. In other cases, the contract may make time essential or provide a clear termination right. A written demand should therefore state the order, payment, delivery failure, legal basis for ending the transaction and the repayment deadline instead of simply demanding money without preserving the buyer's position.

For a concise explanation of the underlying concept, see our advance payment glossary entry.

What Should You Check Before Demanding Repayment?

Start with a structured document review. The most useful evidence usually includes:

• the signed contract, purchase order or pro forma invoice;
• the agreed delivery date, Incoterms, extensions and any promised shipment date;
• proof of payment, including the bank transfer or SWIFT confirmation;
• emails, messaging-app records and notices exchanged after the missed delivery;
• the supplier's full legal name, tax information, address and signatory details;
• any bank account or beneficiary information used for the payment; and
• evidence that the supplier may be moving assets, closing accounts, changing premises or trading through another company.

Do not edit, delete or selectively forward the correspondence. Preserve the original files, attachments, payment references and dates. A timeline showing the order, payment, delivery promise, extensions, requests for repayment and supplier responses can be as important as the contract itself.

Which Turkish Company Owes You the Money?

The company named on the invoice may not be the account holder that received the payment, and the business still communicating with you may not be the same legal entity. Before starting recovery, reconcile the contract, invoice, bank beneficiary, tax details, trade name and registry records.

A Turkish company that has changed its name, entered liquidation or stopped trading may still have outstanding obligations. Conversely, a new company with a similar name, the same address or overlapping managers is not automatically responsible for the original supplier's debt. Linking entities requires evidence, such as an asset transfer, business transfer, succession arrangement or other legally relevant connection.

Use the relevant Turkish trade registry records to check status, name changes, mergers, liquidation and registered representatives. This is a fact-finding step, not by itself proof that a claim is valid against every related company.

How Can an Advance Payment Be Recovered in Türkiye?

The available route depends on the claim documents, the supplier's response, the dispute-resolution clause and the urgency of protecting assets. The routes are not always sequential:

1. Formal repayment demand. A clear written notice can set out the breach, termination position, repayment amount, bank details and deadline. It may also create a useful record for later proceedings.
2. Enforcement proceedings. In suitable cases, a creditor may begin enforcement without first obtaining a judgment. If the supplier objects, the claim may require a further procedural step to continue or overcome the objection.
3. Commercial mediation. For qualifying commercial monetary lawsuits, prior mediation is generally a condition of filing. Mediation can also be used strategically to test settlement while preserving litigation options.
4. Lawsuit or arbitration. If repayment is disputed, the buyer may need a commercial court claim or arbitration, depending on the governing law and dispute-resolution clause.

Our debt collection in Türkiye guide explains how amicable settlement, enforcement, provisional attachment and litigation can fit together for foreign creditors.

Can Enforcement Start Without a Court Judgment?

Potentially. Turkish enforcement proceedings may be initiated without a prior judgment when the claim and procedural route allow it. The supplier can object, and an objection may change the next step, cost and timeline. A creditor should not assume that filing alone guarantees recovery or prevents the supplier from moving assets.

Before filing, check the identity of the debtor, the maturity and amount of the repayment claim, interest, currency, service address and supporting documents. A demand and enforcement file should not describe one company while the payment record identifies another.

Where the supplier has already objected or the claim depends on termination of the sales contract, a court or arbitration strategy may need to address the underlying contractual issues. The enforcement route should be selected with the likely objection in mind.

When Is Commercial Mediation Required?

For qualifying commercial lawsuits involving a monetary claim, compensation, objection cancellation, negative declaratory relief or restitution, prior mediation is generally a condition of filing under the applicable commercial procedure. The mediation process normally has a six-week period, with a possible extension of up to two additional weeks where necessary.

This does not mean every recovery step must wait for mediation. Ordinary enforcement proceedings may follow a different route, and urgent asset-protection measures need separate timing analysis. Read our commercial mediation glossary entry and have counsel check the exact claim before choosing the sequence.

Can a Turkish Court Freeze the Supplier's Assets?

If there is a serious risk that the supplier will hide, transfer or dissipate assets, a provisional attachment may be considered. This interim measure can target qualifying monetary claims and may secure bank accounts, receivables, movable assets or property before the dispute is finally decided.

The applicant generally needs to show a qualifying claim and credible evidence supporting the attachment grounds. The contract, payment records, missed delivery, repayment demand and communications may help demonstrate the claim. Evidence of asset risk could include machinery or stock being moved, closed accounts, a new company operating from the same address or a supplier becoming silent after repeated extensions.

A foreign court or arbitration clause does not automatically prevent an application to a Turkish court for attachment of assets located in Türkiye. The Turkish court will still examine jurisdiction, statutory conditions, the claim and any required security. For a broader strategy, see asset protection before international arbitration.

The court may require security against losses caused by an unjustified attachment. The amount is case-specific; the PDF guide describes a practical range often seen in applications, but no percentage should be treated as guaranteed without reviewing the court, claim and evidence.

Why the Seven-Day Deadline Matters

Once a provisional attachment has been carried out, the creditor generally has seven days to take the required next step, such as starting enforcement proceedings or applying for mediation, subject to the exact procedural basis and service rules. If the next step is missed, the attachment may fall away and the supplier may again be free to move the assets.

Keep a written record of:

• the date the attachment order was issued;
• the date the order was delivered to the enforcement office;
• the date and scope of actual execution;
• the date any attachment record was served; and
• the deadline for enforcement, mediation, lawsuit or arbitration under the chosen route.

There may also be an earlier deadline to request execution of the attachment order and separate deadlines for arbitration or the main claim. Treat the seven-day period as an emergency planning signal, not as a substitute for a case-specific deadline calculation.

Does a Foreign Company Need to Provide Security?

A foreign company bringing a claim or enforcement proceeding in Türkiye may be required to provide security for costs and potential losses. The result can depend on the claimant's place of business, treaty protection, reciprocity and the court's assessment.

Possible exemptions may arise under the 1954 Hague Convention on Civil Procedure, a bilateral judicial-assistance treaty or proven reciprocity. If no exemption applies, the court may require a deposit or accept an appropriate bank guarantee. Separate security may be required for a provisional attachment.

Budgeting should therefore consider more than attorney fees: translation, notarisation, apostille, service, mediation, court or enforcement fees, security for the attachment and security for the main proceeding may all affect the recovery economics.

What If the Supplier Says the Company Has Closed?

A statement that the supplier has closed does not end the investigation. Check the Turkish trade registry for liquidation, merger, name change, address and representation records. Review the payment beneficiary and the account that received the advance. Then compare the old supplier with any replacement company, including assets, stock, customers, employees and premises.

Liquidation may create additional deadlines and creditor-notification issues. A new company may be separate, even if it has a similar name or overlapping management. The legal route should be based on evidence rather than assumptions or online comments.

How Does the CISG Affect a Turkish Supplier Dispute?

The CISG can provide rules for qualifying international sales of goods between businesses in different contracting states. It may address delivery, fundamental breach, avoidance, damages and other remedies, subject to its scope, the parties' choices and the contract's wording.

Türkiye's participation does not mean the CISG automatically resolves every dispute. The goods, parties, places of business, governing-law clause, exclusion language and any domestic-law issues must be checked. A missed delivery date may or may not justify avoidance, and the buyer may need to give the seller an additional period or notice depending on the facts.

Do not confuse the applicable sales law with the forum for recovery. A contract may be governed by the CISG or another law while enforcement or asset protection takes place in Türkiye.

Advance Payment Recovery Checklist

Before sending a final demand or starting proceedings, assemble the following:

1. Contract file: contract, purchase order, pro forma invoice, terms and conditions, Incoterms and dispute-resolution clause.
2. Payment file: bank transfer, SWIFT confirmation, beneficiary name, account details, currency and payment reference.
3. Delivery file: promised date, shipment commitments, extensions, tracking, inspection or acceptance requirements.
4. Communications file: emails, messaging records, demands, excuses, admissions and settlement proposals.
5. Supplier identity file: full registered name, tax number, trade registry details, address, directors and signatory.
6. Asset-risk file: evidence of closed accounts, moved machinery or stock, empty premises, a new company or unusual transfers.
7. Authority file: company registration documents and a notarised and apostilled power of attorney where required for Turkish counsel.

You do not generally need a company or office in Türkiye to pursue a claim. However, foreign documents may need notarisation, apostille or Turkish translation, and the procedural requirements should be planned before a deadline expires.

Frequently Asked Questions (FAQs)

Key Takeaway for Foreign Buyers

Advance payment recovery is often decided by timing and evidence rather than by the payment receipt alone. Confirm whether the contract can be ended, identify the company that received the money, preserve the full file and assess asset risk before the supplier's position changes.

Where assets may disappear, a provisional attachment may need to be assessed before the main lawsuit or enforcement strategy. If an attachment is carried out, the seven-day next-step deadline leaves little room for delay.

Each matter turns on its contract, payment trail, supplier structure and available assets. This guide is a practical starting point, not a substitute for a case-specific review under Turkish law.