Paid a Turkish supplier but never received the goods? Learn how foreign buyers can demand delivery, terminate the contract, recover advance payments, claim damages, use mediation, pursue litigation or arbitration and consider fraud remedies in Turkey.

A foreign buyer may transfer a substantial advance or even the full purchase price to a Turkish supplier, manufacturer or exporter and then discover that the goods are not being delivered. The supplier may stop responding, repeatedly postpone shipment, claim production problems, demand additional money or promise a refund that never arrives.

For an international buyer, the immediate reaction is often to describe the situation as fraud. Sometimes that may ultimately be justified. In many cases, however, failure to deliver goods is initially a commercial contract dispute, and the legal strategy should begin by examining the contract, payment records, delivery obligations, default provisions and financial condition of the supplier.

The key questions are straightforward: Was there a binding sale contract? When was delivery due? Was payment actually received by the supplier? Has the supplier legally defaulted? Can the buyer still demand the goods, or is termination and repayment preferable? Can damages be claimed? Does the supplier still have assets? Is there evidence that the supplier never intended to deliver from the beginning?

The Turkish Ministry of Trade’s international trade guidance recognizes the particular risk of advance payment for buyers because payment is made before shipment and risks such as delayed shipment or non-conforming goods are principally borne by the importer under that payment structure. (Ticaret Bakanlığı) For this reason, once non-delivery occurs, foreign buyers should act quickly to preserve both contractual and recovery options.

What Should a Foreign Buyer Do First?

The first step is to collect the entire transaction file.

This should normally include the signed contract, purchase order, pro forma invoice, commercial invoice, bank-transfer confirmation, payment instructions, emails, messages, delivery schedule, technical specifications, shipping commitments and any later promises made by the supplier.

A commercial dispute becomes much easier to evaluate when the transaction can be reconstructed chronologically.

Confirm Exactly Who Received the Payment

This is particularly important in international transactions.

The company named as supplier in the contract may not be the same entity whose bank account received the money.

If the payment was sent to another company, director, shareholder or intermediary, determine why.

The identity of the recipient can materially affect both contractual recovery and any later fraud analysis.

Was There a Binding Contract?

A formal agreement signed by both parties provides the clearest starting point, but international commercial transactions are not always documented in a single contract.

The parties may instead have a purchase order, quotation, pro forma invoice, email acceptance and payment record.

The entire documentary relationship should therefore be examined to establish what was actually agreed.

Determine the Exact Delivery Deadline

This sounds simple, but many disputes turn on it.

Was the supplier required to ship by a fixed date?

Was the date merely estimated?

Was delivery dependent on an advance payment, technical approval or another condition?

Was the deadline later extended?

Before declaring default, determine precisely when performance became due.

What If the Contract Says “Delivery Within 60 Days”?

Identify when that period started.

Was it 60 days from signing?

From receipt of the advance?

From approval of technical drawings?

From opening of a letter of credit?

Vague timing provisions frequently create disputes that could have been avoided through clearer drafting.

What If the Delivery Date Has Already Passed?

The buyer should examine whether the supplier is legally in default and whether an additional period for performance is required under the applicable contractual and legal framework.

The correct notice procedure can be important.

A buyer should avoid terminating impulsively where the contract or applicable law requires another procedural step first.

Should the Buyer Send a Formal Demand?

Usually, where non-delivery has become serious, a properly prepared written demand is appropriate.

The notice can identify the contract, payment, delivery obligation and existing breach and demand performance within the applicable period.

Depending on the circumstances, it may also reserve the buyer’s rights to terminate, recover payments and claim damages.

The form and delivery method should comply with the contract.

Do Not Rely Only on Messaging Applications

Messages are useful evidence, but substantial commercial claims should normally be supported by formal notices where appropriate.

A supplier saying “next week, definitely” repeatedly through messaging applications may not sufficiently protect the buyer’s legal position.

Contractual notice provisions should be followed.

Can the Buyer Still Demand Delivery?

Potentially, yes.

If the goods remain commercially useful and the supplier is capable of performing, the buyer may prefer performance rather than termination.

For example, a foreign manufacturer may urgently need a custom component that cannot easily be sourced elsewhere.

The legal strategy should therefore reflect the buyer’s commercial objective.

When Is Termination More Appropriate?

Termination may become preferable where the supplier has clearly abandoned performance, excessive delay has destroyed the commercial purpose of the transaction or evidence suggests that delivery is unlikely ever to occur.

Before terminating, however, the buyer should confirm that the legal conditions have been satisfied.

A defective termination can create additional disputes.

Can the Buyer Demand the Advance Payment Back?

Potentially.

Where the contract is validly terminated or otherwise gives rise to a repayment obligation, the buyer may seek recovery of amounts already paid.

The supplier cannot necessarily avoid repayment merely because it has already spent the money.

The more difficult question is whether the supplier has sufficient recoverable assets.

Can the Full Purchase Price Be Recovered?

Potentially, if the buyer paid the full price and received no goods.

Again, the buyer needs to establish the legal basis for repayment.

Evidence showing the payment and non-delivery is critical.

What If the Supplier Claims Production Has Started?

This may affect the dispute, particularly for customized goods.

The supplier may argue that significant costs have already been incurred.

The buyer should investigate what work has actually been completed and whether the supplier is legally entitled to retain any portion of the payment.

Claims should not be resolved through unsupported estimates.

Custom-Manufactured Goods

These transactions require particular care.

A supplier may have purchased raw materials or partially completed specialized machinery.

The contract should ideally explain what happens if the transaction terminates during production.

If it does not, expert valuation and contractual analysis may become necessary.

What If Only Part of the Order Was Delivered?

The buyer should determine whether partial performance is acceptable.

Suppose EUR 500,000 was paid for 1,000 units but only 300 units were delivered.

The buyer may need to calculate the value of the delivered goods and determine whether the remaining obligation should still be performed or terminated.

The legal response should reflect the actual commercial loss.

What If the Goods Are Ready but the Supplier Refuses to Ship?

This creates a different factual scenario from a supplier that never manufactured the goods.

The buyer should investigate why shipment is being withheld.

The supplier may allege an unpaid balance, contractual dispute or additional cost.

Shipping documents and contractual payment milestones become especially important.

Can the Buyer Claim Damages for Late Delivery?

Potentially.

Damages may extend beyond simple refund of the purchase price where the applicable legal requirements are satisfied.

The buyer may have incurred additional shipping costs, emergency replacement-purchase expenses, production losses or contractual penalties payable to its own customer.

However, each category of damages must be proved and linked causally to the supplier’s breach.

Replacement Purchase Costs

Suppose the Turkish supplier fails to deliver machinery components and the foreign buyer must urgently purchase equivalent goods from another supplier at a higher price.

The additional cost may become relevant to a damages claim depending on the contractual and legal framework.

Preserve alternative quotations, invoices and evidence showing why substitute procurement was necessary.

Lost Profits

Lost-profit claims are generally more difficult than straightforward repayment claims.

The buyer should not simply estimate that it “lost millions.”

Contracts with customers, production records, purchase orders and financial evidence may be necessary to establish a sufficiently certain loss.

Contractual Penalties

The contract may include delay penalties or liquidated damages.

Review the wording carefully.

Determine when the penalty begins, what amount applies and whether any contractual cap exists.

Do not assume every amount written into a commercial contract will automatically be awarded without legal analysis.

Can Interest Be Claimed?

Potentially.

Where the supplier is required to repay money or pay another monetary obligation, interest issues may arise depending on the applicable contract and law.

The relevant starting date and rate should be calculated carefully.

What If the Supplier Promises a Refund?

Document the promise.

A written acknowledgment of repayment obligations can be valuable evidence.

However, do not indefinitely postpone formal action based on repeated unsecured promises that “payment will be made next week.”

A supplier experiencing financial distress may be trying to buy time while other creditors act first.

Should the Buyer Accept Installment Repayment?

Sometimes an installment settlement may offer faster recovery than litigation.

But the settlement should be properly documented.

It should identify the recognized debt, payment schedule, default consequences and any security supporting the repayment.

Do not surrender existing rights merely in exchange for another unsecured promise.

Ask for Security Before Granting More Time

If a supplier requests additional time to refund a substantial advance, consider whether security can be provided.

Depending on the transaction, this might involve a bank guarantee or another legally appropriate security arrangement.

Commercial patience should ideally be exchanged for improved recovery protection.

Investigate the Supplier’s Financial Condition

Once delivery stops, determine whether the supplier is merely experiencing operational delay or more serious financial distress.

Warning signs can include repeated enforcement proceedings, unpaid workers, inability to purchase raw materials, closed facilities, management turnover or demands for additional advance payments.

This affects recovery strategy.

Why Enforcement Risk Matters

A buyer may have an excellent EUR 1 million claim but recover very little if the supplier has no assets.

Therefore, the buyer should think about asset preservation and collection before spending years litigating the merits.

The legal strategy should ask both:

Can we win?

and

Can we collect?

Can the Supplier’s Bank Accounts Be Protected?

Depending on the circumstances and legal requirements, interim protective measures may potentially be available.

They are not automatic.

The buyer must establish the relevant statutory grounds and provide appropriate evidence.

Where significant assets appear to be disappearing, urgent analysis is especially important.

Can Other Supplier Assets Be Targeted?

Potentially, depending on the recovery procedure.

The supplier may own real estate, vehicles, machinery, receivables or other assets.

Asset investigation can therefore become an important component of the case.

What If the Supplier Transfers Assets to Another Company?

Investigate the transactions.

If assets are being transferred to related persons or companies after the dispute arises, the timing, consideration and relationship between the parties can become highly significant.

Different civil or enforcement remedies may need to be considered depending on the circumstances.

What If the Supplier Is Nearly Insolvent?

Recovery becomes substantially more difficult.

The buyer should determine whether insolvency, restructuring or creditor proceedings have begun.

Waiting for repeated delivery promises while the supplier’s financial condition deteriorates can seriously damage the buyer’s recovery position.

Commercial Litigation in Turkey

Where the contract provides for Turkish courts and the dispute falls within their jurisdiction, commercial proceedings may be available to seek payment, performance or damages.

The precise claim should reflect the contract and desired remedy.

For monetary commercial claims, procedural preconditions must also be considered.

Mandatory Mediation for Commercial Monetary Claims

Under the current Turkish framework, mandatory mediation applies to specified commercial disputes involving monetary receivables and compensation claims before proceedings are filed in court. The rule has been part of Turkish commercial dispute resolution since 2019 and continues to apply in 2026. (IBA)

Accordingly, a foreign buyer pursuing a commercial payment claim through Turkish courts may first need to complete the applicable mediation procedure.

Does Mandatory Mediation Mean the Buyer Must Settle?

No.

Mandatory mediation means the required procedure must be attempted where the statutory conditions apply.

The buyer is not required to accept an unfavorable settlement.

If no agreement is reached, the dispute may proceed according to the applicable litigation process.

Why Mediation Can Still Be Useful

Where the supplier acknowledges the debt but lacks immediate liquidity, mediation can sometimes produce a structured repayment agreement.

The buyer may negotiate installments, security and accelerated default consequences.

The commercial value depends on the supplier’s actual ability to pay.

Arbitration

International supply contracts frequently contain arbitration clauses.

If the contract provides for arbitration, the buyer must generally follow that dispute-resolution mechanism rather than simply filing an ordinary commercial action without analysis.

Review the clause for institution, seat, governing law and language.

ICC Arbitration and Other Institutional Clauses

Foreign buyers should determine precisely what arbitration clause they signed.

An agreement stating merely “disputes will be resolved by arbitration” can generate additional jurisdictional disputes.

Well-drafted clauses identify the institutional or procedural framework clearly.

Governing Law

Do not assume that a transaction involving a Turkish supplier automatically means that every issue is governed solely by Turkish domestic law.

International sales contracts can raise governing-law questions and potentially international conventions.

The contract should be examined before determining the substantive remedy.

International Sale of Goods

Cross-border goods transactions can potentially raise issues under international sales law depending on the jurisdictions involved and the contractual structure.

Foreign buyers should therefore avoid applying purely domestic assumptions before reviewing the applicable law.

Can a Criminal Complaint Be Filed?

Potentially, but non-delivery by itself does not automatically constitute criminal fraud.

This distinction is essential.

A company can fail to deliver because of financial problems, production failures, supply-chain disruptions or a genuine contractual dispute.

Criminal allegations become more relevant where evidence suggests that the supplier intentionally deceived the buyer to obtain money and never genuinely intended to perform.

Contract Breach Versus Fraud

Consider two situations.

In the first, a long-established supplier accepts an advance, begins production and later becomes unable to complete the goods because its factory suffers severe financial difficulties.

That may primarily be a commercial dispute.

In the second, a newly created company advertises machinery it does not own, takes advances from multiple foreign buyers and immediately transfers the funds to personal accounts without ever beginning production.

The second situation raises much stronger fraud concerns.

Evidence of Fraudulent Intent

Possible indicators may include nonexistent production facilities, fabricated shipping documents, false inventory claims, fake certificates, repeated identical schemes affecting multiple buyers or immediate diversion of payment to unrelated personal accounts.

No single factor automatically proves fraud.

The evidence should be assessed together.

Do Not File a Criminal Complaint Merely to Pressure the Supplier

Criminal procedures should not be used simply as leverage in an ordinary contractual dispute.

The facts must support suspected criminal conduct.

A carefully prepared legal analysis should distinguish non-performance from intentional deception.

What If the Supplier Uses Fake Shipping Documents?

This can materially change the case.

Preserve the document.

Verify the carrier, shipment number and issuing party.

False transport or customs documentation may become important evidence in a criminal investigation and commercial claim.

What If the Supplier Claims the Goods Were Shipped?

Ask for documentary proof.

Obtain the bill of lading, airway bill, carrier information, tracking records or other relevant transport evidence.

Verify them independently.

Do not rely solely on screenshots supplied by the seller.

Check the Incoterm

Delivery obligations can depend heavily on the agreed Incoterm.

For example, responsibility for shipment and transfer of risk can differ depending on whether the contract uses EXW, FCA, FOB, CIF, DAP or another term.

The exact agreed version and named place matter.

Non-Delivery Versus Loss During Transportation

These are legally different problems.

If the supplier never handed the goods to the carrier, the dispute concerns supplier performance.

If the supplier properly shipped them but the goods were lost during transit, the allocation of risk may depend on the contract, Incoterm and insurance arrangements.

Determine where the failure actually occurred.

Freight Forwarder Evidence

Where shipment is disputed, transport intermediaries may hold important evidence.

Preserve booking confirmations, pickup records and communications with the freight forwarder.

Third-party evidence can help establish whether the goods ever left the supplier.

What If the Buyer Paid by Letter of Credit?

The analysis can be different.

Payment under a documentary credit depends heavily on the documents presented and the credit terms.

If payment occurred against allegedly false documents, immediate banking and legal analysis may be necessary.

What If the Buyer Paid by Ordinary Bank Transfer?

Then the buyer may have fewer payment-stage protections.

The bank transfer proves that money was sent, but the bank generally does not guarantee supplier performance simply because payment was processed.

This is why advance payment without security creates significant buyer risk.

Can the Buyer Ask the Bank to Reverse the Transfer?

Where payment has only recently occurred, the buyer should contact its bank immediately.

Whether a transfer can be recalled depends on the payment method, timing and circumstances.

Contacting the bank should not unnecessarily delay legal action against the supplier.

What If the Supplier Requests More Money to Release the Goods?

Be extremely cautious.

A supplier that has already failed to meet agreed obligations may claim that another payment is necessary for customs, storage, raw materials or shipping.

The buyer should independently verify the explanation before increasing exposure.

Repeated demands for additional funds can be a significant warning sign.

Foreign Buyers Outside Turkey

A foreign buyer does not necessarily need to remain physically in Turkey to pursue a commercial claim.

Appropriate legal representation can handle substantial parts of the procedure.

However, transaction documents, powers of attorney and cross-border evidence may require proper formalities.

Evidence From Abroad

Foreign bank statements, purchase orders, emails and corporate documents may become important.

Preserve original electronic records.

Where documents need to be used formally, translation, authentication or other procedural requirements may arise depending on the proceedings.

What Should the Buyer Do in the First 24 Hours?

Preserve the contract, bank-transfer confirmation, invoice, delivery schedule and all communications.

Determine whether the supplier has clearly missed the contractual deadline.

Verify the company’s current status and whether it is still operating.

Do not transfer more money simply because the supplier promises that another payment will solve the problem.

Identify the applicable dispute-resolution and notice provisions.

What Should Be Done During the First Week?

Prepare a complete chronology.

Determine the amount paid and outstanding goods.

Send appropriate formal notices where necessary.

Investigate the supplier’s financial position.

Identify potential assets.

Review whether interim protection should be considered.

Determine whether the contract requires mediation, litigation or arbitration.

Evaluate separately whether evidence genuinely supports criminal fraud.

Create a Supplier Non-Delivery File

A useful case file should include:

Contract – Order – Invoice – Payment – Delivery Date – Extensions – Supplier Explanations – Formal Notice – Goods Delivered – Amount Outstanding – Claimed Damages – Supplier Assets – Dispute Resolution Clause.

This provides a clear basis for recovery strategy.

Should the Buyer Continue Negotiating?

Possibly, but negotiations should have limits.

If the supplier has a credible production problem and provides reliable evidence, a short extension may be commercially reasonable.

If promises change every week and no objective evidence of production exists, continued delay may simply weaken recovery prospects.

Negotiation should be tied to measurable commitments.

Ask for Evidence Before Granting an Extension

Request photographs, inspection reports, material purchase records, production schedules or other relevant proof.

For valuable goods, consider independent inspection.

A supplier seeking additional time should be able to demonstrate that actual performance is occurring.

Use a Written Extension Agreement

If an extension is accepted, document it.

The agreement should address the new delivery deadline, preservation of existing rights, payment status and consequences of further default.

Do not let informal extensions create uncertainty about whether the supplier remains in breach.

Request Security During Extension

If the buyer agrees not to terminate immediately, consider whether the supplier can provide additional security.

The buyer is giving the supplier something valuable: more time.

Commercially, the buyer may seek improved protection in return.

What If the Supplier Refuses to Refund but Admits the Debt?

A written acknowledgment can substantially simplify the evidentiary position.

The buyer can then evaluate the most efficient recovery procedure based on the acknowledgment and applicable law.

Any settlement should identify the amount and payment deadline clearly.

Enforcement Proceedings for Monetary Claims

Depending on the documents and legal circumstances, enforcement mechanisms may potentially be considered for monetary recovery.

The appropriate route should be selected after reviewing the contract and evidence.

Foreign buyers should not assume that a single enforcement method fits every international sales dispute.

What If the Supplier Objects to the Debt?

The dispute may then require further court proceedings or other contractual dispute-resolution mechanisms.

The buyer should ensure that deadlines following any objection are monitored carefully.

Can the Buyer Recover Legal Costs?

Potentially, depending on the proceedings, outcome and contractual framework.

Legal expenses should be documented from the beginning.

The recoverable amount may differ from the buyer’s actual professional costs.

Currency Risk in Recovery

If the buyer paid in euros or dollars, the currency of the repayment claim can become financially important.

The contract and applicable law should be reviewed regarding currency and interest.

Exchange-rate movements can materially affect the economic outcome of a long dispute.

Supplier Bankruptcy Risk

A foreign buyer should continually monitor whether the supplier’s financial distress is worsening.

If formal restructuring or insolvency procedures begin, the recovery strategy can change significantly.

The buyer may need to assert its claim within the applicable creditor process rather than proceeding as though the supplier remains financially healthy.

How Can Foreign Buyers Prevent This Problem?

Future transactions should use stronger payment protection.

The Ministry of Trade’s guidance on international payment methods highlights the risk borne by the importer under advance payment. (Ticaret Bakanlığı)

Foreign buyers can reduce that risk through limited advances, milestone payments, bank guarantees, documentary payment mechanisms, inspection rights and carefully drafted termination and refund provisions.

Advance Payment Guarantee

Where commercially available, an advance payment guarantee can provide considerably stronger recovery protection.

Instead of relying exclusively on the supplier, the buyer may have rights against an issuing bank according to the guarantee terms.

The guarantee should be reviewed before payment.

Milestone Payments

Do not necessarily transfer 50% or 100% simply because the supplier requests it.

Payments can be linked to objective performance milestones.

This reduces the amount at risk at each stage.

Inspection Before Final Payment

Where valuable goods are being manufactured, independent inspection before final payment or shipment can provide additional security.

The inspector can verify whether the goods actually exist and comply with contractual specifications.

Keep a Retention Amount

Retaining part of the price until delivery or acceptance gives the buyer additional leverage.

Once 100% has been transferred, leverage may be substantially reduced.

Strong Refund Clause

Future contracts should state precisely when an advance becomes repayable.

Define the deadline for reimbursement and consequences of failure to pay.

This can make later recovery considerably clearer.

Frequently Asked Questions

1. What can I do if I paid a Turkish supplier and the goods were never delivered?

Review the contract and evidence immediately, identify the delivery deadline, preserve payment records, issue appropriate formal notices and evaluate performance, termination, repayment and damages remedies.

2. Can I get my advance payment back?

Potentially, where the contractual and legal conditions for repayment are satisfied. Actual collection will also depend on the supplier’s financial position and available assets.

3. Can I claim damages in addition to a refund?

Potentially. Additional losses such as reasonable replacement-purchase costs may be recoverable where causation and the applicable legal requirements are established.

4. Should I file a criminal complaint?

Not automatically. Failure to deliver goods is often a commercial dispute. Criminal remedies become more relevant where evidence indicates deliberate deception rather than ordinary non-performance.

5. Can I sue a Turkish supplier from abroad?

Potentially. The correct forum depends on the contract, jurisdiction, arbitration clause and applicable procedural rules.

6. Is mediation required before a commercial lawsuit?

For specified commercial monetary claims before Turkish courts, mandatory mediation may apply as a precondition to litigation. (IBA)

7. What if the contract contains an arbitration clause?

The arbitration clause should be followed according to its terms and applicable law. The institution, seat, language and governing law should be reviewed before proceedings begin.

8. Can the supplier’s assets be protected before judgment?

Potentially, where the applicable requirements for interim protective measures are established. Such measures are not automatic and require case-specific analysis.

9. What if the supplier keeps asking for more money before shipping?

Do not increase exposure without independently verifying the explanation and actual status of the goods.

10. What evidence is most important?

The contract, purchase order, invoice, payment confirmation, delivery commitment, communications, formal notices and any shipping or production evidence are particularly important.

Legal Assistance for Foreign Buyers Facing Non-Delivery by Turkish Suppliers

When a Turkish supplier takes payment but fails to deliver goods, the foreign buyer should not spend months relying only on informal promises that shipment will occur “next week.”

The legal strategy should determine whether the supplier is already in default, whether the buyer should still demand performance, whether termination is available, how the advance or purchase price can be recovered, what additional damages can be proved and whether the supplier has assets available for collection.

Criminal and commercial remedies should also be kept distinct. Ordinary non-performance should generally be analyzed as a contractual dispute, while evidence showing intentional deception from the outset may justify separate criminal-law consideration.

Fırat Fesih Kaya Law Office provides legal assistance to foreign buyers, international companies and foreign investors concerning Turkish supplier non-delivery, recovery of advance payments, international sale-of-goods disputes, commercial contract termination, supplier default, damages claims, commercial mediation, litigation, arbitration and fraud-related investigations in Turkey.

Legal assistance may include reviewing the supply contract and payment documentation, preparing default and repayment notices, analyzing termination rights, investigating the supplier’s financial and corporate status, evaluating protective measures, conducting mandatory commercial mediation where applicable and representing foreign buyers in litigation or arbitration.

Phone: +90 312 434 22 22
Mobile / WhatsApp: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Office: Mevlana Boulevard No:221, Yildirim Tower, Balgat, Cankaya, Ankara, Turkey

For foreign buyers, the most important practical point is that delay after clear non-delivery can turn a strong legal claim into a difficult recovery problem if the supplier’s assets disappear or other creditors act first. Preserving evidence, establishing default and investigating recovery options early can materially improve the buyer’s position.