International Factoring Receivables Enforcement in Turkey

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açık Ocak 15, 2026

1. The Nature of International Factoring Transactions

International factoring usually involves three actors: the supplier (exporter), the debtor (importer), and the factor. Under the factoring agreement, the supplier assigns its receivables to the factor, either with or without recourse, in exchange for immediate cash or financing.

In cross-border settings, a second (import) factor may intervene, creating a four-party structure managed through the framework of the FCI General Rules for International Factoring (GRIF). Regardless of structure, the decisive legal event is the assignment of receivables—that is, the transfer of the right to claim payment from the debtor to the factor.

The assignment may cover a single invoice or an entire portfolio of receivables. It may be disclosed to the debtor (the debtor knows it must pay the factor) or undisclosed (the debtor continues to pay the exporter until notified). These distinctions are not merely commercial—they determine the procedural posture of enforcement in Turkey.

2. Why Enforcement Arises in Turkey

Enforcement in Turkey generally occurs in one of three situations:

The debtor is domiciled in Turkey or holds assets there, such as bank accounts, inventory, or receivables from Turkish customers.
The goods were delivered in Turkey, and the dispute touches Turkish trade territory.
A foreign judgment or arbitral award must be recognized and enforced against assets located in Turkey.

For foreign creditors, Turkey’s enforcement system offers a mature procedural framework and centralized electronic registries. Yet, success depends on precise compliance with documentary and procedural requirements that differ from common-law or continental European approaches.

3. Legal Basis of Factoring and Assignment of Receivables

Factoring in Turkey has both regulatory and civil-law dimensions.

3.1 Regulatory aspect

Factoring operations conducted on a professional and continuous basis are regulated under the Financial Leasing, Factoring and Financing Companies Law No. 6361. This statute defines factoring as a financial service in which a licensed institution purchases receivables arising from the sale of goods or services. Domestic factors must hold a license from the Banking Regulation and Supervision Agency (BDDK).

Foreign factors who are not physically operating or soliciting business in Turkey, but merely enforcing assigned receivables, are not required to be licensed, since enforcement of an existing assignment is considered a civil-law activity, not a regulated financial service. However, where a foreign factor systematically conducts collection or factoring business within Turkey, licensing issues may arise.

3.2 Civil-law aspect

The legal foundation of the receivable transfer lies in the Turkish Code of Obligations (TCO). Articles on “assignment of receivables” govern how a creditor may transfer its rights to a third party.

Under Turkish law:

The assignment must be in writing to be valid.
The debtor’s consent is not required, unless the underlying contract prohibits assignment.
Once the debtor is notified, it must pay the assignee (factor); payment to the original creditor after notification is invalid.

In practical terms, the enforcement officer or court will require:

A written assignment agreement or factoring contract,
A schedule or annex showing the particular invoices assigned,
Evidence of debtor notification, and
The underlying invoices and delivery proofs.

Without these, enforcement may stall or be rejected.

4. Building an Enforcement-Ready Documentation Set

The single most decisive element in Turkish enforcement is documentation. The factor should create a litigation pack capable of surviving scrutiny by both the enforcement office and any subsequent court review.

Essential documents include:

Factoring contract: establishing the legal basis of the relationship between factor and exporter.
Assignment notice or transfer agreement: specifying which receivables have been transferred.
Invoices and shipping/delivery documents: proving the receivable’s existence and maturity.
Debtor notice and acknowledgment: proof that the debtor was informed of the assignment.
Power of attorney and translations: properly notarized and apostilled if foreign.
Proof of default: correspondence or account statements showing non-payment.

In Turkey, documents in foreign languages must be submitted with sworn Turkish translations certified by a notary. Missing or defective translations often delay enforcement.

5. Enforcement Routes Available in Turkey

Depending on the evidence available and the nature of the receivable, a factor may pursue several distinct routes.

5.1 Ordinary (non-judgment) enforcement

The creditor files a petition before the local enforcement office (İcra Dairesi) requesting issuance of a payment order. The order is served on the debtor, who has seven days to object. If the debtor does not object, enforcement becomes final, and the factor can request attachment of assets (bank accounts, movable goods, real estate).

If the debtor objects, enforcement is suspended. The factor must then either:

Seek annulment of the objection through a lawsuit, or
Prove its claim through summary removal of objection if strong documentary evidence exists.

5.2 Enforcement based on negotiable instruments

If the assigned receivable is evidenced by a promissory note or bill of exchange, the factor can use the fast-track bill enforcement procedure. This path grants immediate attachment and limits objections to formal matters (signature denial, prescription, etc.). It is often faster and more coercive.

5.3 Enforcement based on a Turkish court judgment

If the factor has already sued the debtor and obtained a final Turkish judgment, it proceeds through judgment enforcement. This route skips the objection phase and moves directly to asset seizure.

5.4 Enforcement based on a foreign judgment or arbitral award

If the factor obtained a foreign court decision or arbitral award, it must first seek recognition and enforcement in Turkey. Once the Turkish court grants enforcement (tenfiz), the award or judgment is treated like a domestic decision.

For arbitral awards, Turkey is a party to the New York Convention (1958), which facilitates enforcement of foreign awards, provided procedural requirements—translation, original documents, due process proof—are met.

6. Jurisdiction and Competence

The proper venue for enforcement depends on where the debtor resides or where its assets are located. If the debtor is a company registered in Istanbul, the Istanbul Enforcement Offices are competent. If the factor intends to seize property elsewhere, jurisdiction shifts to the location of the asset (for example, real estate in Izmir or bank accounts in Ankara).

In practice, creditors often choose Istanbul Central Enforcement Offices because of their speed and experience in international matters.

7. Dealing with Debtor Objections

The debtor’s objection to the payment order is the most common obstacle. An objection may contest:

The existence of the debt,
The validity of the assignment,
The amount,
The creditor’s capacity, or
Alleged defects in the goods/services.

If the debtor objects, the enforcement office cannot proceed until the objection is lifted or annulled. The factor then has two tactical choices:

(a) Removal of objection (summary path)

This is available if the claim is based on documents with formal evidentiary strength—negotiable instruments, notarized acknowledgments, or signed debt confirmations.

(b) Annulment of objection (lawsuit)

If the claim is supported only by invoices and delivery notes, the factor must bring a lawsuit before the civil court of first instance (Asliye Ticaret Mahkemesi). The court examines the merits and decides whether the debt exists. Once the court annuls the objection, enforcement resumes automatically.

The factor must file the lawsuit within one year from the objection date; otherwise, the right to continue enforcement expires.

8. Interim Protection: Precautionary Attachment (İhtiyati Haciz)

Because debtors may dissipate assets, the factor should consider applying for a precautionary attachment order before or during enforcement.

Requirements for precautionary attachment

The claim must be monetary and due, or due within a short period.
The creditor must present prima facie evidence of the claim’s existence.
The court may require a security deposit (usually around 15% of the claim) to cover possible wrongful-attachment damages.

Once granted, the order allows immediate freezing of bank accounts, receivables, or movable goods. This measure is extremely effective in international files because it creates pressure for negotiation and settlement.

If the debtor later objects to enforcement, the attachment remains in place until the dispute is resolved, preserving the creditor’s position.

9. Cross-Border Service, Apostille, and Translation

Service of documents on foreign debtors or factors must comply with the Hague Service Convention or diplomatic channels. When the debtor is in Turkey, ordinary domestic service suffices.

All foreign documents—contracts, assignments, invoices, or judgments—must be apostilled in their country of origin and translated into Turkish by a certified translator. The notary then certifies the translation for use before Turkish authorities.

Improper legalization or missing translations are among the top three reasons why foreign enforcement petitions are rejected or delayed.

10. Foreign Currency Receivables and Interest

Factoring receivables are often denominated in EUR or USD. Turkish law allows enforcement directly in the foreign currency of the debt, unless payment in Turkish Lira was expressly agreed.

The creditor may also claim default interest. When the contract specifies an interest rate, that rate applies. If not, Turkish law provides a statutory default interest for foreign-currency debts, which is adjusted annually. The creditor must clearly calculate both the principal and interest up to the filing date and may request continuing interest until payment.

Conversion to Turkish Lira is only necessary at the execution stage if the creditor chooses to sell attached assets in TL; otherwise, the enforcement can proceed in the foreign currency.

11. Recognition and Enforcement of Foreign Judgments and Arbitral Awards

If the factor has already litigated abroad and obtained a final judgment, that decision is not automatically enforceable in Turkey. It must go through a recognition and enforcement procedure before Turkish courts.

The key requirements are:

The judgment is final and binding in its home jurisdiction.
There is reciprocity between Turkey and the issuing state.
The defendant was properly notified and represented.
The decision does not violate Turkish public policy.

Once the court grants enforcement, the foreign judgment becomes equivalent to a Turkish judgment and can be executed directly through enforcement offices.

For arbitral awards, Turkey’s adherence to the New York Convention simplifies enforcement. Turkish courts only verify basic procedural conditions: existence of an arbitration agreement, proper notice, and no violation of public policy. In practice, international arbitral awards are frequently recognized and enforced, provided the paperwork is meticulous.

12. Debtor Defenses Typical in Factoring Enforcement

Debtors often use several recurring defenses to delay or weaken enforcement. The factor’s counsel must anticipate these in advance.

Common arguments include:

“The assignment was not notified to me.”
Solution: Produce courier proof, acknowledgment, or email showing notice.
“The goods were defective or not delivered.”
Solution: Show delivery receipts, acceptance certificates, or trade confirmations.
“I already paid the exporter.”
Solution: Demonstrate the timing of payment and notice; payments after notice do not discharge the debtor.
“The factor is unlicensed in Turkey.”
Solution: Emphasize that mere enforcement of a receivable is a civil act, not regulated factoring activity.
“The amount includes interest or penalties I never accepted.”
Solution: Provide contract clauses or invoices showing agreement on payment terms.

Prepared evidence and procedural discipline can neutralize most of these tactics swiftly.

13. Practical Strategies for Successful Enforcement

Experienced practitioners emphasize a few operational principles:

Translate everything early. Delayed translations cause weeks of procedural downtime.
Notify the debtor immediately upon assignment. Even an email or courier slip can be crucial.
File for precautionary attachment in parallel. This freezes assets and prevents judgment-proof tactics.
Use local enforcement counsel familiar with UYAP (electronic justice system). Foreign clients often underestimate its technical requirements.
Combine commercial pressure with procedural speed. A well-timed attachment or garnishment often leads to negotiation before the merits are heard.
Prepare for exchange-rate arguments. Debtors may dispute conversion rates; state explicitly whether enforcement is in foreign currency or TL equivalent.

14. Settlement Dynamics in Factoring Enforcement

Most factoring enforcement matters conclude with a settlement rather than full adjudication. The pressure created by asset attachments, combined with interest accumulation, usually compels the debtor to negotiate.

Effective settlement strategy requires:

Maintaining the enforcement proceeding active (do not withdraw until payment).
Securing a payment protocol or acknowledgment of debt signed and notarized.
Releasing attachments only after full payment clears.

This pragmatic balance between firmness and flexibility often leads to faster recovery than pursuing every procedural remedy.

15. Case Study – A Typical International Factoring Enforcement

Consider a Spanish factor that purchased EUR-denominated invoices from a textile exporter. The Turkish buyer failed to pay. The factor holds:

The factoring agreement and assignment annex;
Copies of invoices and signed delivery receipts;
Email correspondence acknowledging receipt of goods;
A courier proof showing that the debtor received assignment notice.

Step 1 – Filing enforcement

The factor files a payment order in Istanbul for the EUR amount plus interest.

Step 2 – Debtor objection

The debtor objects, claiming the goods were defective. Enforcement is suspended.

Step 3 – Annulment lawsuit

The factor files a lawsuit for annulment of the objection before the Istanbul Commercial Court. Expert examination confirms proper delivery.

Step 4 – Precautionary attachment

During the lawsuit, the court grants precautionary attachment over the debtor’s bank accounts.

Step 5 – Judgment and execution

After one year, the court rejects the debtor’s defenses and orders payment. The factor reactivates enforcement, sells seized assets, and recovers the receivable.

This timeline illustrates the importance of early evidence collection and interim measures.

16. Electronic Systems and Practical Tools

The Turkish enforcement infrastructure is largely digital. Lawyers and authorized representatives file petitions through UYAP (National Judiciary Informatics System). This platform connects courts, enforcement offices, and land/bank registries. Foreign factors usually act through Turkish counsel equipped with electronic signatures.

Electronic filings allow real-time monitoring of objections, attachments, and auction processes. Proper use of UYAP drastically reduces procedural delays and provides transparency for foreign creditors.

17. Costs, Security Deposits, and Duration

The total cost of enforcement depends on:

Court and enforcement fees, calculated as a small percentage of the claim,
Attorney fees, subject to statutory tariffs or agreement,
Translation and notarization expenses, and
Security deposits for precautionary attachment orders.

Average duration:

Uncontested enforcement: 2–4 months until collection.
Contested enforcement (with lawsuit): 12–24 months, depending on workload and expert evidence.

Partial settlements, mediation, or acknowledgment of debt can shorten the process significantly.

18. Integration with Insolvency and Concordat Proceedings

If the debtor files for concordat or bankruptcy during enforcement, the factor must promptly register its claim with the insolvency administration. Assigned receivables are treated as ordinary unsecured claims unless secured by pledges or guarantees.

In insolvency contexts, timing is critical: attachments granted within a short period before insolvency may be suspended. Therefore, factors enforcing in Turkey should monitor the debtor’s financial condition continuously and act before formal insolvency begins.

19. Compliance and Anti-Money Laundering Considerations

International factoring enforcement may raise compliance issues when funds cross borders. Turkish banks often require:

Documentation proving the legal basis of the claim,
Tax identification of the foreign factor, and
Information on the source of funds for repatriation.

Foreign creditors should coordinate with local counsel to ensure that repatriated collections comply with Turkish exchange and AML regulations.

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