How long can a company chase a debt? Limitation periods for commercial debt by country

How long can a company chase a debt? The short answer

It depends on the law that governs the contract. For an unpaid B2B invoice the general limitation period is three years in Germany, China and South Africa, five years in the Netherlands, Spain, Hungary and Saudi Arabia, six years in England and Wales and Singapore, and ten years in Italy, Switzerland, Sweden and Mexico. Once it has run out, the debtor can raise the time limit as a defense, and you can usually no longer get a court order for payment.

The table below covers 23 countries and the United States. Each row names the legal basis and links to the source, with the date it was checked. Many countries also have shorter special periods for particular claims, such as rent, interest or professional fees. This page is general information, not legal advice.

Which country's limitation period applies

The limitation period comes from the law that governs the contract, not from the court that hears the case. In the EU, the law applicable to a contract governs "prescription and limitation of actions" (Rome I Regulation, Article 12(1)(d)). Courts in England and Wales follow the same idea: where another country's law applies, "the law of that other country relating to limitation shall apply" (Foreign Limitation Periods Act 1984, s.1(1)(a)).

Without a choice of law clause, an EU court applies the law of the seller's country to a sale of goods and the law of the service provider's country to services (Rome I, Article 4(1)(a) and (b)). An Italian supplier selling to a German buyer with no choice of law clause is therefore likely to have Italy's ten years, not Germany's three. A clear clause removes the doubt: see contract clauses for selling abroad.

Limitation periods for commercial debt by country

General limitation period for a claim to payment of a B2B invoice, as of 27 October 2026. Click a country for our guide to collecting there.

United States: each state sets its own period

There is no federal limitation period for an unpaid business invoice; state law decides. For contracts for the sale of goods, the Uniform Commercial Code says an action "must be commenced within four years after the cause of action has accrued", and the parties may reduce the period "to not less than one year but may not extend it" (UCC §2-725). States adopt the UCC in their own statutes. For other contracts the period varies by state: New York, for example, allows six years for "an action upon a contractual obligation or liability, express or implied" (CPLR §213). Check the state whose law governs your contract, or see our guide to debt collection in the United States.

How to stop the clock

Every country lists the acts that restart or pause the limitation period. The debtor's acknowledgment, a part payment and court action appear almost everywhere. A reminder letter counts in some countries and not in others:

Keep the proof: a signed acknowledgment, a bank record of the part payment or the dated reminder.

What to do before the period runs out

1. Note the limitation date when the invoice falls due, under the law that governs the contract.
2. Escalate on a schedule. Reminders, then a final demand: see our demand letter templates and what to do about unpaid invoices.
3. Ask for a written acknowledgment or a payment plan. In many countries in the table, an acknowledgment restarts the period.
4. Hand over in time for legal action. A court claim, a European payment order or enforcement abroad all take time to prepare: see enforcing a judgment abroad.
5. Do not threaten court action you can no longer take. If a claim is time-barred and you still ask the debtor to pay, do not suggest that court action is still possible.

Interest keeps running while you wait, and you can usually add it to the claim: see late payment interest by country.

How Debitura fits

Hand over well before the limitation date. A claim that is already time-barred is not eligible for collection on Debitura. For live claims, we match your case to a vetted local partner in the debtor's country, based on the type of debtor, the claim and how partners perform on our platform, in 180 countries.

One Standard Debt Collection Agreement covers pre-legal collection of undisputed unpaid invoices in every country we serve. There is no upfront cost: you pay a success fee only when money is recovered, from 6% in Europe and 7.5% elsewhere, depending on claim size and the debtor's country (see pricing). Legal action is optional, quoted separately and only starts if you accept the quote.

See how our commercial collection agency service works, the steps in how it works, what B2B debt collection involves, and our guide to international debt collection.