According to the Allianz Trade Global Insolvency Outlook 2026–27, global business insolvencies are forecast to rise by a further 5% in 2026 – a fifth consecutive annual increase – leaving total insolvency levels approximately 24% above the pre-pandemic average. The Atradius Payment Practices Barometer 2026 reinforces this picture: nearly four in five Western European firms report facing late payment, with 47% of all B2B invoices overdue, and the situation in Central and Eastern Europe even more acute, with 83% of suppliers affected. International companies operating across multiple jurisdictions should review their credit risk exposure and debt recovery procedures as a matter of priority.
What the Data Signals for Cross-Border Trade
Both the Allianz Trade and Atradius surveys point to the same structural shift: the post-pandemic credit environment has not normalised. Instead, payment stress has compounded year on year. For businesses selling across borders – whether on open account, documentary credit, or deferred payment terms – the aggregate risk of holding unpaid invoices has risen materially. The Allianz Trade forecast of a 5% global rise in 2026 should be read not as an average concealing bright spots, but as a trend line running across most major trading regions simultaneously.
The Atradius figure of 47% of B2B invoices overdue in Western Europe is particularly significant for trade finance and accounts receivable management. When nearly half of all commercial invoices are not paid on time, the administrative and legal cost of collections rises in proportion, and the probability of any given debtor becoming insolvent before payment is recovered increases.
For companies with exposure in Central and Eastern Europe, where 83% of suppliers report being affected by late payment, the risk profile is sharper still. Local enforcement infrastructure, procedural timelines for a payment order or the enforcement of a judgment, and the availability of interim measures such as asset freezing all vary considerably by jurisdiction and should be factored into credit decisions before disputes arise.
Who Is Most Directly Affected
The insolvency and late-payment environment described by both sources affects a broad range of cross-border actors, but the following categories face the most immediate legal and operational exposure:
- Exporters and trade creditors holding open invoices against buyers in jurisdictions where insolvency filings are accelerating. Once insolvency proceedings open, unsecured claims are typically subordinated and recovery prospects narrow considerably.
- Importers and buyers relying on supplier financing or extended terms, who may find counterparties withdrawing credit facilities or demanding security as their own balance sheets come under pressure.
- Investors and lenders with exposure to portfolios of SME receivables, supply-chain finance structures, or factoring arrangements, where the underlying obligors sit in the most affected regions.
- Companies in insolvency-adjacent situations – those already in restructuring discussions, or whose key customers or suppliers may be – who need clarity on creditor rights, stay provisions, and cross-border recognition of proceedings.
If your firm has material receivables outstanding in Western or Central and Eastern Europe, we would encourage you to reach out to discuss your specific exposure. You can contact our team at info@ferrazwhitmore.com or visit our contacts page.
The Legal Mechanics: What Changes When Insolvency Rises
A rising insolvency cycle does not simply mean more bad debts. It changes the legal calculus at each stage of the creditor–debtor relationship.
Pre-dispute: Credit terms, retention-of-title clauses, and personal guarantee structures that were adequate in a low-insolvency environment may no longer provide sufficient protection. Late payment interest provisions – which in many European jurisdictions are backed by statutory rights – become both more relevant and more contested as debtors resist escalation.
During collection: The speed at which a creditor moves from a late invoice to a formal debt collection action, a payment order, or a court claim can determine whether assets remain available for execution. Debtors in financial difficulty often transfer assets, restructure group entities, or draw down credit lines in the period before a formal insolvency filing. Timely legal intervention – including applications for asset freezing where available – can preserve the creditor's position.
In insolvency proceedings: Once a debtor enters formal proceedings, creditor rights shift to the insolvency framework. The ranking of claims, the recognition of foreign security interests, and the ability to challenge pre-insolvency transactions (known as antecedent or claw-back transactions in most systems) all become central questions. Cross-border proceedings add a further layer: recognition under EU insolvency regulation, UNCITRAL Model Law frameworks, or bilateral treaty arrangements will determine whether a creditor can participate meaningfully from outside the jurisdiction.
Our practice note on navigating debt recovery in a rising insolvency cycle sets out the procedural steps and strategic considerations in greater detail.
Five Immediate Actions for International Companies
Given the trajectory described in both sources, the following measures are advisable for companies with material cross-border receivables or supplier exposure:
- Audit outstanding receivables by jurisdiction. Identify concentrations of overdue invoices in the regions most affected by the trends reported – particularly Western Europe and CEE – and assess the age profile against the statutory or contractual limitation periods applicable in each country.
- Review contract terms before the next transaction. Retention-of-title clauses, jurisdiction and governing law provisions, and late payment interest mechanisms should be calibrated to the insolvency risk of the counterparty's home jurisdiction, not simply carried forward from prior agreements.
- Act early on overdue accounts. The data from Atradius suggests that overdue invoices are no longer exceptional – they are the norm. Escalating to formal debt collection procedures, including a demand letter with statutory late payment interest, should happen on a defined timeline rather than at the discretion of relationship managers.
- Consider interim protective measures. In jurisdictions where asset freezing or provisional attachment is available prior to judgment, an application can be made on an expedited basis where there is evidence of dissipation risk. The procedural thresholds and timelines vary by country and should be assessed with local counsel promptly.
- Understand the insolvency framework before a filing occurs. If a key customer or supplier is showing signs of distress, obtain early advice on the applicable insolvency regime, the treatment of your claims, and any steps – such as registering security or accelerating a contractual right – that must be taken before proceedings open to preserve your position.
Restructuring and Bankruptcy: Knowing When to Engage
Not every insolvency is terminal. In many jurisdictions, formal restructuring procedures – court-supervised moratoriums, schemes of arrangement, or out-of-court workouts – offer creditors a framework in which they can negotiate, protect their position, and in some cases recover more than they would in a liquidation. The ability to engage constructively with a debtor in restructuring depends on early identification of the situation and an understanding of the procedural rights available in the relevant jurisdiction.
Our bankruptcy and restructuring practice advises creditors and debtors across European and international jurisdictions on pre-insolvency workouts, formal proceedings, and cross-border recognition issues. Early engagement with legal counsel typically expands the options available on both sides.
For companies with exposure in Switzerland specifically, the procedural framework for enforcement of judgments and the pursuit of overdue claims under Swiss debt enforcement law requires particular attention given its distinct procedural character. Further information is available on our Swiss debt recovery page.
How Ferraz & Whitmore Can Assist
Our cross-border practice brings together procedural knowledge across multiple jurisdictions to support creditors, investors, and companies managing the legal consequences of rising insolvency. We assist with the full spectrum of engagement: from reviewing contract portfolios for risk exposure, to conducting debt collection procedures, to advising on creditor rights in formal insolvency proceedings and negotiating restructuring terms.
We do not offer predictions on outcomes. What we offer is a structured, jurisdiction-specific analysis of your options and the procedural steps most likely to protect your position given the facts of your situation.
To discuss a specific matter or to request a preliminary review of your cross-border receivables exposure, please contact us at info@ferrazwhitmore.com or through our contacts page. We aim to respond to initial enquiries within one business day.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.