Mediation in Turkish Commercial Disputes and Debt Collection Cases

Introduction

Mediation in Turkish commercial disputes has become a central part of debt collection, contract enforcement and business dispute resolution in Turkey. Companies seeking to recover unpaid invoices, contractual receivables, service fees, commissions, compensation or other commercial debts must carefully consider the mandatory mediation rules before commencing court proceedings.

Under Article 5/A of the Turkish Commercial Code No. 6102, applying to a mediator is a condition of action for specified commercial lawsuits. The rule primarily covers commercial claims concerning the payment of money or compensation. Following legislative amendments, the scope also expressly includes certain commercial actions for annulment of objection, negative declaratory relief and restitution.

Mandatory commercial mediation has applied in Turkey since 1 January 2019. It does not require the parties to reach an agreement. It requires the claimant to complete the mediation procedure before filing a covered commercial lawsuit. If no settlement is reached, the claimant may proceed before the competent commercial court after obtaining the final mediation report.

Commercial mediation is particularly important in debt collection cases because Turkish law offers several different methods of recovering a commercial debt. A creditor may initiate enforcement proceedings, file a receivables lawsuit, seek annulment of an objection, bring a restitution action or, in appropriate circumstances, request interim attachment or other protective measures.

The mediation requirement does not apply in the same way to every debt collection method. For example, initiating ordinary enforcement proceedings does not generally require the creditor first to complete mandatory mediation. However, if the debtor objects and the creditor later files a commercial action for annulment of the objection, mediation must generally be completed before that action is filed.

Selecting the correct route requires an assessment of the underlying contract, available documents, the debtor’s likely defences, limitation periods, financial condition, available security and location of assets.

This article explains mediation in Turkish commercial disputes and debt collection cases, including mandatory mediation, unpaid invoices, enforcement proceedings, annulment of objection, negative declaratory actions, restitution claims, settlement agreements, instalment plans, security and cross-border debt recovery.

What Is Commercial Mediation Under Turkish Law?

Commercial mediation is a confidential negotiation process conducted with the assistance of an independent and impartial mediator registered with the Turkish Ministry of Justice.

The mediator does not act as a judge or arbitrator. The mediator does not determine whether a debt exists, decide which party has breached the contract or impose a payment obligation.

Instead, the mediator assists the parties in:

• Defining the commercial dispute;
• Exchanging information and settlement proposals;
• Evaluating litigation and collection risks;
• Discussing payment alternatives;
• Restructuring commercial debt;
• Preserving an ongoing business relationship;
• Recording any settlement in writing.

The parties retain control over the outcome. A creditor may reject an inadequate offer, and a debtor may refuse to acknowledge a disputed debt.

Where the parties do not reach an agreement, the mediator prepares a final non-agreement report. The claimant may then file the relevant commercial action.

Is Mediation Mandatory in Turkish Commercial Disputes?

Mediation is mandatory before filing commercial lawsuits falling within Article 5/A of the Turkish Commercial Code.

The original framework made mediation a condition of action for commercial lawsuits concerning claims for payment of a sum of money or compensation. Subsequent amendments expanded and clarified the provision to cover commercial actions concerning:

• Payment of money;
• Compensation;
• Annulment of objection;
• Negative declaratory relief;
• Restitution.

Therefore, a claimant cannot necessarily avoid mandatory mediation by changing the formal title of the lawsuit while maintaining the same underlying commercial monetary dispute.

However, not every disagreement involving a company is automatically subject to mandatory commercial mediation. Two separate questions must be answered:

1. Does the dispute qualify as a commercial action?
2. Does the remedy requested fall within the statutory mediation requirement?

The commercial nature of the parties alone is not always sufficient. The legal relationship, subject matter and requested relief must be examined.

What Is a Commercial Action?

The Turkish Commercial Code recognises different categories of commercial actions.

Some disputes are commercial because they arise from matters expressly regulated as commercial by law. Others are commercial because the transaction relates to the commercial enterprises of both parties.

Relevant factors may include:

• Whether the parties are merchants;
• Whether the transaction concerns a commercial enterprise;
• Whether the dispute is classified as commercial by statute;
• The nature of the contract;
• The purpose of the transaction;
• The court competent to hear the dispute;
• The remedy requested.

A dispute between two limited companies will often be commercial, but the final classification still depends on the legal relationship.

Likewise, a dispute between a company and an individual may be commercial, consumer-related or an ordinary civil dispute depending on why the individual entered into the transaction.

For example, a person purchasing machinery for a business may be acting commercially. The same person purchasing a household appliance for personal use may qualify as a consumer.

Commercial Debt Collection in Turkey

Commercial debt collection in Turkey may involve several procedural routes.

A creditor may consider:

• Sending a formal payment notice;
• Negotiating directly;
• Applying for voluntary mediation;
• Initiating ordinary enforcement proceedings;
• Initiating enforcement based on a negotiable instrument;
• Filing a commercial receivables lawsuit;
• Filing an action for annulment of objection;
• Seeking interim attachment;
• Filing a bankruptcy-based proceeding where legally available;
• Applying to arbitration where the contract contains an arbitration clause.

Mandatory commercial mediation mainly affects lawsuits. It does not automatically prevent a creditor from initiating enforcement proceedings or seeking urgent protective relief where the legal conditions are satisfied.

However, once an enforcement dispute develops into a commercial lawsuit, the mediation requirement must be reviewed carefully.

Unpaid Commercial Invoice Claims

Unpaid invoices are among the most common subjects of commercial mediation in Turkey.

A creditor may claim payment arising from:

• Sale of goods;
• Supply agreements;
• Consultancy;
• Construction work;
• Software services;
• Maintenance services;
• Logistics and transportation;
• Advertising;
• Manufacturing;
• Distribution;
• Agency services;
• Professional services.

An invoice alone may not always conclusively prove the debt. The creditor may also need to establish:

• The underlying contractual relationship;
• Delivery of goods;
• Performance of services;
• Acceptance of performance;
• Due date;
• Absence of valid objections;
• Authority of the persons involved.

The debtor may argue that:

• Goods were not delivered;
• Services were incomplete;
• Performance was defective;
• The invoice amount is incorrect;
• Payment was already made;
• A set-off right exists;
• The person placing the order lacked authority;
• The debt is not yet due;
• The claim is time-barred.

During mediation, the parties may review invoices, delivery records, contracts, emails, account statements, warehouse records and payment documents.

A settlement may involve immediate payment, instalments, return of goods, replacement performance, reduction of the invoice amount or continuation of the commercial relationship under revised terms.

Contractual Receivables and Compensation Claims

Commercial mediation also applies to many claims arising from breach of contract.

These may include:

• Purchase price claims;
• Service fees;
• Contractor receivables;
• Agency commissions;
• Distribution payments;
• Licence fees;
• Royalty payments;
• Delay compensation;
• Loss of profit;
• Contractual penalties;
• Damages caused by defective performance;
• Compensation for unlawful termination.

The creditor should distinguish between the principal debt and additional claims.

A commercial claim may include:

• Principal receivable;
• Contractual interest;
• Default interest;
• Foreign-exchange loss;
• Contractual penalty;
• Compensation;
• Collection expenses;
• Lawyers’ fees, where legally recoverable.

These items should be identified separately in the mediation application and settlement negotiations.

Does a Creditor Need Mediation Before Starting Enforcement Proceedings?

As a general rule, mandatory commercial mediation is a condition for filing specified commercial lawsuits, not for initiating ordinary debt enforcement proceedings.

A creditor may therefore commence an enforcement proceeding without first completing mediation, provided that the selected enforcement route is legally appropriate.

This distinction is important.

Ordinary enforcement proceedings may be initiated without a prior court judgment. The enforcement office sends a payment order to the debtor. The debtor may then:

• Pay the debt;
• Remain silent;
• Object to the debt;
• Object to interest;
• Object to jurisdiction;
• Object to the signature, depending on the proceeding.

If no valid objection is made within the applicable period, the creditor may continue the enforcement process.

If the debtor objects, the proceeding may stop. The creditor may then need to bring an action or use another statutory remedy. If the resulting action is a commercial action covered by Article 5/A, mandatory mediation generally becomes relevant before the lawsuit is filed.

Mediation and Annulment of Objection Actions

An action for annulment of objection is one of the most important commercial debt collection lawsuits.

In ordinary enforcement proceedings, the debtor’s timely objection generally suspends the proceeding. The creditor may then file an action seeking annulment of the objection.

Where the underlying claim is commercial and monetary, applying to mediation is generally a condition of action before filing the annulment lawsuit.

The creditor should not wait until the end of the statutory filing period to apply.

The mediation process must be coordinated with:

• Date of the debtor’s objection;
• Date on which the creditor learned of the objection;
• Statutory period for filing the action;
• Limitation period of the underlying receivable;
• Scope of the original enforcement demand;
• Parties named in the enforcement proceeding.

The mediation application should identify:

• Enforcement office;
• Enforcement file number;
• Principal debt;
• Interest;
• Objection;
• Amount remaining in dispute;
• Any requested enforcement denial compensation.

The later lawsuit should remain connected to the dispute submitted to mediation.

Scope of the Mediation Application After an Objection

A frequent procedural risk arises when the mediation application is drafted too narrowly or too vaguely.

For example, stating only that the parties have a “commercial dispute” may not adequately identify the enforcement file and receivable.

The application should ideally include:

• Contract or invoice details;
• Enforcement file;
• Principal amount;
• Interest type;
• Objection date;
• Nature of the objection;
• Requested outcome.

If only part of the enforcement debt is disputed, that should also be identified.

Where the creditor intends to request annulment of objection and compensation based on allegedly unjustified resistance, the issue should be considered when defining the mediated dispute.

Negative Declaratory Actions

A negative declaratory action is filed by a person seeking a judicial declaration that the alleged debt does not exist.

Commercial negative declaratory disputes may arise where:

• A company denies an invoice debt;
• A negotiable instrument is disputed;
• A guarantee is alleged to be invalid;
• A debt has already been paid;
• A person is pursued for another company’s debt;
• The amount claimed is excessive;
• The signature or authority is denied;
• An enforcement proceeding has been initiated without a valid debt.

Following legislative amendments, commercial negative declaratory actions concerning monetary claims are expressly included within the mandatory mediation framework.

Therefore, a debtor planning to file such an action should generally complete mediation first, unless a specific exception or urgent procedural issue applies.

Where the claimant seeks interim protection against an enforcement proceeding, the timing and relationship between mediation and interim relief must be analysed carefully.

Restitution Actions

A restitution action may be filed where a person claims that money was collected despite the absence of a valid debt.

This may occur where:

• Payment was made under enforcement pressure;
• The same invoice was paid twice;
• An invalid document was enforced;
• More than the actual debt was collected;
• Payment was made by the wrong company;
• A debt had already expired or been discharged.

Where the underlying dispute is commercial, mandatory mediation generally applies before filing a commercial restitution lawsuit.

The mediation application should specify:

• Amount paid;
• Payment date;
• Enforcement file, if any;
• Reason the payment is alleged to be unjustified;
• Interest and other requested amounts.

Mediation and Direct Receivables Lawsuits

A creditor may choose to file a commercial receivables lawsuit instead of starting enforcement proceedings.

Before filing a covered commercial payment or compensation claim, mandatory mediation must generally be completed.

A direct lawsuit may be preferable where:

• The debtor is expected to object immediately;
• The dispute requires extensive expert examination;
• The creditor seeks a declaratory ruling;
• The contract is complex;
• Several parties are involved;
• The claim is connected with non-monetary relief;
• An arbitration or jurisdiction issue exists.

The claimant should not file the lawsuit first and attempt to cure the missing mediation requirement afterward. Where mandatory mediation was never commenced, the court may dismiss the case due to absence of a condition of action.

If mediation was completed but the final report was merely omitted from the statement of claim, the court may provide an opportunity to submit it under the applicable procedure.

Commercial Mediation Procedure

Application

The application is generally submitted to the courthouse mediation office within the jurisdiction of the competent court.

Where there is no separate mediation office, the designated civil court registry performs the relevant functions.

The applicant should provide:

• Full legal names of the parties;
• Tax and registration details;
• Registered addresses;
• Contact information;
• Nature of the commercial relationship;
• Amount claimed;
• Relevant contract;
• Invoice details;
• Enforcement file information;
• Type of intended lawsuit;
• Supporting documents.

No application fee is generally charged for submitting a mandatory mediation application.

Appointment of the Mediator

The mediation office appoints a registered mediator from the official list.

If the parties jointly agree on a registered mediator, that mediator may be appointed instead.

Turkey also applies specialist mediation assignments in areas including commercial law, banking and finance, construction, intellectual property, energy and other specialised fields.

Contacting the Parties

The mediator contacts the parties and invites them to the first meeting.

The invitation may be made through available communication channels. The parties should provide accurate telephone, email and address information.

A company should ensure that the invitation reaches an authorised decision-maker or legal representative.

Meetings

Commercial mediation meetings may be conducted:

• In person;
• Online;
• Through video conference;
• In joint sessions;
• In separate private sessions.

The mediator may hold confidential individual meetings with each side.

The parties may participate personally, through authorised company representatives or through lawyers holding the necessary authority.

Duration of Mandatory Commercial Mediation

Mandatory commercial mediation must generally be completed within six weeks from the mediator’s appointment.

This period may be extended by up to two additional weeks where necessary.

The Ministry of Justice has specifically reminded mediators to comply with the six-week period and possible two-week extension applicable to commercial disputes.

The procedure may end because:

• The parties reach a full agreement;
• The parties reach a partial agreement;
• No settlement is reached;
• A party refuses to continue;
• A party cannot be contacted;
• A party does not attend;
• Continuation becomes impossible.

A final report is prepared at the end of the process.

Effect of Mediation on Limitation Periods

The period between commencement and termination of the mediation process is treated specially for limitation and forfeiture calculations under Law No. 6325.

This rule is intended to prevent the parties from losing their rights while completing the mandatory procedure.

However, a creditor should not wait until the final day before applying.

Risks may arise where:

• The wrong debtor is named;
• A guarantor is omitted;
• The claim is incorrectly described;
• The application covers only part of the debt;
• The claim was already time-barred;
• A negotiable instrument has a special deadline;
• A separate contractual notice was required.

The safest approach is to analyse all deadlines before initiating mediation or enforcement.

Identifying the Correct Debtor

Correct identification of the debtor is essential.

A business may operate under a commercial name that differs from its registered company name. A branch, trademark or website may not have separate legal personality.

The creditor should verify:

• Registered trade name;
• Company type;
• Trade registry number;
• Tax number;
• Registered office;
• Authorised representatives;
• Whether the company is active, in liquidation or bankrupt;
• Whether another group company is actually responsible.

In some cases, the creditor may need to include:

• Principal debtor;
• Guarantor;
• Joint debtor;
• Endorser;
• Partner with statutory liability;
• Contractor and subcontractor;
• Insurer.

Failure to include a necessary party in mediation may cause complications when that party is later sued.

Documents Required in Commercial Debt Mediation

The creditor should prepare:

• Written contract;
• Purchase order;
• Invoice;
• Delivery note;
• Account statement;
• Bank records;
• Email correspondence;
• Acceptance documents;
• Service reports;
• Commercial books;
• Notarial notices;
• Enforcement payment order;
• Debtor’s objection;
• Guarantee documents;
• Negotiable instruments;
• Expert reports.

The debtor should prepare:

• Proof of payment;
• Defect notices;
• Return records;
• Set-off claims;
• Counter-invoices;
• Correspondence disputing performance;
• Contractual termination notices;
• Evidence concerning authority;
• Account reconciliation records.

Mediation is not a formal evidentiary trial. Nevertheless, the strength and reliability of documents significantly affect negotiation leverage.

Commercial Books and Account Records

Commercial disputes frequently involve business books, invoices and account statements.

The parties may disagree about:

• Whether an invoice was entered into the books;
• Whether an account reconciliation was signed;
• Whether the debtor objected to the invoice;
• Whether goods were returned;
• Whether a credit note was issued;
• Whether payments were allocated correctly.

The evidential effect of commercial books depends on Turkish commercial and procedural law.

A company should not assume that an invoice recorded in its own books automatically proves the debt against the other side.

Before mediation, the lawyer and financial adviser should reconcile:

• Principal debt;
• Payments;
• Credits;
• Returns;
• Interest;
• Exchange-rate differences;
• Tax treatment.

Interest in Commercial Debt Claims

Commercial debts may include different types of interest.

Possible categories include:

• Contractual interest;
• Default interest;
• Commercial default interest;
• Statutory interest;
• Foreign-currency interest;
• Interest arising from a current account.

The correct interest type and commencement date depend on:

• Contract;
• Invoice due date;
• Notice of default;
• Nature of the parties;
• Currency;
• Applicable special law.

During mediation, the parties may agree to:

• Waive part of the accumulated interest;
• Freeze interest during an instalment period;
• Apply reduced interest;
• Accelerate interest upon default;
• Use a fixed settlement amount.

The agreement should state whether the negotiated amount includes accrued interest.

Foreign-Currency Commercial Debts

Cross-border and domestic commercial agreements may involve euro, US dollar, pound sterling or another foreign currency.

A settlement should clearly state:

• Payment currency;
• Whether payment in Turkish lira is allowed;
• Exchange-rate source;
• Relevant exchange-rate date;
• Bank transfer charges;
• Tax deductions;
• Consequences of exchange-rate fluctuations;
• Compliance with foreign-exchange restrictions.

A clause referring only to the “current exchange rate” may be insufficient.

The parties should identify whether the settlement replaces the original foreign-currency obligation or merely regulates its payment.

Debt Restructuring Through Mediation

Commercial mediation is particularly suitable for debt restructuring.

A debtor experiencing temporary financial difficulty may propose:

• Instalments;
• Grace period;
• Reduced interest;
• Partial immediate payment;
• Transfer of assets;
• Third-party guarantee;
• Renewal of commercial relations;
• Return of unsold goods;
• Conversion of debt into another obligation.

The creditor should evaluate:

• Debtor’s actual payment capacity;
• Existing assets;
• Other enforcement proceedings;
• Security;
• Company financial records;
• Risk of bankruptcy or restructuring;
• Value of immediate partial recovery.

A nominally high settlement has little value if the debtor cannot perform it.

Instalment Settlements

An instalment settlement should contain:

• Total debt;
• Initial payment;
• Number of instalments;
• Exact payment dates;
• Payment account;
• Default interest;
• Grace period;
• Acceleration clause;
• Loss of settlement discount;
• Security;
• Enforcement costs;
• Conditional release.

Without an acceleration clause, default on one instalment may not automatically make the entire remaining debt immediately due.

The creditor should avoid giving an unconditional full release at the time of signature where payment will be completed later.

Security for Commercial Settlement Payments

A creditor may request security such as:

• Bank guarantee;
• Corporate guarantee;
• Personal guarantee;
• Promissory note;
• Pledge;
• Mortgage;
• Assignment of receivables;
• Escrow;
• Retention of title.

Each security instrument has separate validity and form requirements.

A simple statement that a person “guarantees payment” may not provide the intended legal protection unless guarantee rules are satisfied.

The settlement should state:

• Identity of the guarantor;
• Amount secured;
• Duration;
• Scope;
• Form of guarantee;
• Procedure following default.

Interim Attachment and Mediation

A creditor may be concerned that the debtor will transfer or conceal assets during negotiations.

Mandatory mediation should not automatically be treated as a barrier to seeking urgent protective measures where statutory requirements exist.

Depending on the circumstances, the creditor may consider interim attachment or another protective remedy while preserving the mediation process.

The creditor must nevertheless satisfy the specific legal requirements for the requested measure.

A strategy may involve:

1. Preserving assets;
2. Completing mandatory mediation;
3. Filing the substantive lawsuit if no agreement is reached;
4. Continuing enforcement after obtaining a judgment or enforceable settlement.

Because protective measures may have serious consequences, they should be assessed individually.

Confidentiality in Commercial Mediation

Confidentiality is a major advantage of commercial mediation.

The process may involve:

• Trade secrets;
• Customer lists;
• Pricing policies;
• Financial problems;
• Internal accounting records;
• Product defects;
• Business strategy;
• Settlement proposals;
• Admissions made for negotiation.

Statements and documents produced solely for mediation are generally protected from later use as evidence.

However, documents that existed independently before mediation do not become inadmissible merely because they were presented during negotiations.

For example:

• An invoice remains evidence;
• A delivery record remains evidence;
• A contract remains evidence;
• A bank statement remains evidence.

A settlement offer made specifically during mediation is treated differently.

The parties may also sign a separate confidentiality agreement regulating disclosure to employees, affiliates, auditors, insurers and advisers.

Failure to Attend the Mediation Meeting

A party that fails to attend the first mediation meeting without a valid excuse may face consequences regarding litigation expenses and lawyers’ fees under the applicable procedural rules.

The precise consequence should be assessed according to the current statutory framework and the final mediation report.

A company should not ignore a mediation invitation simply because it disputes the debt.

Participation allows the company to:

• Present its defence;
• Clarify accounting records;
• Negotiate payment;
• Protect commercial reputation;
• Avoid unnecessary litigation.

If an authorised representative cannot attend personally, the company may participate through a properly authorised lawyer.

Mediation Settlement Agreements

If the parties reach an agreement, the obligations should be recorded in a detailed written settlement.

A commercial mediation settlement should include:

• Full registered names of the parties;
• Registration and tax details;
• Authority of signatories;
• Description of the underlying contract;
• Invoice or enforcement file details;
• Principal debt;
• Interest;
• Settlement amount;
• Currency;
• Payment dates;
• Bank account;
• Security;
• Default provisions;
• Withdrawal of proceedings;
• Release;
• Confidentiality;
• Costs;
• Enforcement.

The final agreement should not merely state that the parties “have settled the commercial dispute.”

Scope of Release

Release clauses are especially important in long-term commercial relationships.

The agreement should clarify whether the release covers:

• Only specified invoices;
• All invoices up to a certain date;
• Interest;
• Compensation;
• Contractual penalties;
• Related enforcement proceedings;
• Claims arising from defective performance;
• Claims against guarantors;
• Future warranty claims.

Where the parties wish to continue working together, the release should not unintentionally eliminate future claims arising from later transactions.

A creditor receiving instalments should consider making the release effective only after full payment.

Withdrawal of Enforcement Proceedings

If an enforcement file already exists, the settlement should specify:

• Whether the file will remain open;
• Whether enforcement will be suspended;
• Whether attachments will be lifted;
• Whether the creditor will withdraw the proceeding;
• When withdrawal will occur;
• Who will pay enforcement fees;
• What happens if the debtor defaults.

A creditor should be cautious about immediately withdrawing enforcement and releasing attachments before receiving payment or adequate security.

The settlement may provide that enforcement will be withdrawn only after the full settlement amount is paid.

Enforceability of Commercial Mediation Agreements

A valid mediation settlement is binding.

The parties may apply to the competent court for an enforceability annotation. An agreement carrying the annotation is treated as a document equivalent to a court judgment.

Under Law No. 6325, an agreement signed by the parties, their lawyers and the mediator may, subject to statutory conditions, qualify directly as a judgment-equivalent enforceable document without a separate annotation.

The agreement must still be clear and legally valid.

Direct enforceability does not cure:

• Uncertain obligations;
• Incorrect debtor identity;
• Lack of authority;
• Illegal provisions;
• Missing payment dates;
• Invalid security;
• Ambiguous release terms.

Enforcement should be planned at the drafting stage rather than after default occurs.

What Happens If the Settlement Is Not Performed?

If the debtor fails to perform an enforceable mediation settlement, the creditor may initiate judgment-based enforcement proceedings.

The creditor may seek:

• Principal settlement amount;
• Default interest;
• Accelerated balance;
• Costs;
• Enforcement of security;
• Delivery or performance obligations where legally enforceable.

The available remedies depend on the wording and legal status of the agreement.

If the agreement is not directly enforceable, the creditor may need to obtain an enforceability annotation or pursue contractual remedies.

What Happens If No Agreement Is Reached?

If mediation ends without settlement, the mediator prepares a final non-agreement report.

The creditor may then:

• File a commercial receivables lawsuit;
• File an action for annulment of objection;
• Continue an appropriate enforcement strategy;
• Seek protective measures;
• Commence arbitration where applicable.

The final report must be submitted with the lawsuit in accordance with procedural rules.

The claimant should calculate the remaining limitation and filing periods immediately.

Mediation Costs

No fee is generally charged merely for applying to the courthouse mediation office.

Where no settlement is reached, the fee for the statutorily covered initial period is paid under the mandatory mediation system subject to the applicable rules. Where the parties settle, the mediator’s fee is determined according to the current Mediation Minimum Fee Tariff and is generally shared equally unless the parties agree otherwise.

The 2026 Mediation Minimum Fee Tariff is listed among the current official tariffs published by the Ministry of Justice.

Lawyers’ fees are separate from the mediator’s fee.

The settlement should state who bears:

• Mediator fees;
• Lawyers’ fees;
• Enforcement expenses;
• Court costs;
• Notary costs;
• Translation expenses;
• Taxes and bank charges.

Mediation for Foreign Companies

Foreign companies may participate in commercial mediation in Turkey.

A foreign company may be involved where:

• The debtor is located in Turkey;
• The contract is governed by Turkish law;
• Goods were delivered in Turkey;
• Services were performed in Turkey;
• Turkish courts have jurisdiction;
• Assets are located in Turkey;
• The settlement will be enforced in Turkey.

Foreign companies may participate through an authorised Turkish lawyer.

Required documents may include:

• Certificate of incorporation;
• Trade registry extract;
• Board resolution;
• Signature authority documents;
• Power of attorney;
• Apostille or consular legalisation;
• Sworn Turkish translation.

The exact company name and authority of the signatory must be verified before settlement.

International Commercial Debt Settlements

A cross-border settlement should address:

• Governing law;
• Jurisdiction;
• Arbitration;
• Currency;
• Exchange rate;
• Bank transfer charges;
• Withholding taxes;
• Place of payment;
• Language;
• Controlling language;
• Recognition and enforcement abroad;
• Authority of corporate representatives.

A bilingual agreement should state which language version prevails if there is an inconsistency.

The parties should also consider whether the settlement may qualify under the Singapore Convention on Mediation or another international enforcement framework.

Mediation or Litigation in Commercial Debt Recovery?

Mediation may be preferable where:

• The debtor acknowledges part of the debt;
• The parties have an ongoing relationship;
• Immediate partial recovery is valuable;
• The debtor needs time to pay;
• Confidentiality is important;
• Litigation costs are disproportionate;
• A practical restructuring is possible.

Litigation or enforcement may be necessary where:

• The debtor denies the entire relationship;
• Asset dissipation is likely;
• Fraud is suspected;
• An urgent interim measure is required;
• The debtor refuses meaningful negotiation;
• A precedent or judicial determination is needed;
• A complex legal issue must be resolved.

Mediation and enforcement are not always alternatives. They may be coordinated as parts of the same collection strategy.

Common Mistakes in Commercial Debt Mediation

Naming the Wrong Legal Entity

A brand or branch may not be the actual debtor.

Failing to Include the Enforcement File

The later annulment action may be challenged as falling outside the mediated subject.

Incorrect Debt Calculation

Payments, returns, credits and interest may not be reconciled.

Omitting Interest

The creditor may later disagree over whether the settlement covered interest.

Giving an Immediate Release

The debtor may be released before payment is completed.

Accepting Unsecured Instalments

The creditor may face a second collection problem.

Withdrawing Enforcement Too Early

Attachments and procedural leverage may be lost.

Ignoring Signatory Authority

An unauthorised company representative may sign the agreement.

Using Vague Default Terms

The creditor may not be able to accelerate the balance.

Failing to Review Tax Consequences

Settlement payments may create withholding, VAT or accounting issues.

The Role of a Turkish Commercial Mediation Lawyer

A Turkish commercial mediation lawyer may assist by:

• Determining whether mediation is mandatory;
• Identifying the correct debtor;
• Reviewing the contract;
• Calculating principal and interest;
• Preparing the mediation application;
• Coordinating enforcement proceedings;
• Protecting limitation periods;
• Evaluating the debtor’s defences;
• Negotiating instalments;
• Obtaining security;
• Drafting conditional releases;
• Protecting existing attachments;
• Preparing an enforceable settlement;
• Filing the commercial lawsuit if mediation fails;
• Representing foreign companies.

Legal assistance is particularly important where the dispute involves high-value receivables, several debtors, guarantees, foreign currency, negotiable instruments or cross-border enforcement.

Frequently Asked Questions

Is mediation mandatory before collecting a commercial debt in Turkey?

Mediation is mandatory before filing specified commercial lawsuits. It is not generally a prerequisite for initiating ordinary enforcement proceedings.

Is mediation required before an action for annulment of objection?

Where the underlying dispute is a commercial monetary claim, mandatory mediation generally applies before the action is filed.

Is mediation required before a negative declaratory action?

Commercial negative declaratory actions concerning monetary disputes are generally included within mandatory mediation.

Can a creditor start enforcement first and mediate later?

Yes. If the debtor objects and a covered commercial lawsuit becomes necessary, mediation may then need to be completed before filing that lawsuit.

Must the creditor accept instalment payments?

No. Settlement is voluntary.

Can the creditor keep an attachment during mediation?

The treatment of existing attachments should be considered according to the enforcement file and any settlement terms. They should not be released automatically without assessing payment and security risk.

Can the parties agree in foreign currency?

A foreign-currency settlement may be possible, subject to applicable Turkish foreign-exchange and contract rules.

Can a foreign company participate remotely?

Yes. Online meetings may be conducted, and a foreign company may be represented by a Turkish lawyer.

How long does mandatory commercial mediation take?

It must generally be completed within six weeks, with a possible extension of up to two weeks.

Is the settlement enforceable?

A properly drafted settlement may become enforceable through an enforceability annotation or may qualify directly as a judgment-equivalent document where the statutory signature requirements are satisfied.

Conclusion

Mediation in Turkish commercial disputes and debt collection cases is now an essential part of commercial litigation strategy.

Companies seeking unpaid invoices, contractual receivables, service fees, commissions, compensation or other monetary claims may be required to complete mandatory mediation before filing a commercial lawsuit.

The requirement also applies to covered actions for annulment of objection, negative declaratory relief and restitution.

However, mandatory mediation is primarily a condition for filing lawsuits. A creditor may generally initiate ordinary enforcement proceedings without first applying to mediation. If the debtor objects and the creditor later files a commercial action, the mediation requirement must be reviewed.

An effective debt collection strategy should consider:

• Nature of the commercial debt;
• Available written evidence;
• Correct legal debtor;
• Limitation periods;
• Enforcement options;
• Likelihood of objection;
• Debtor’s assets;
• Need for interim protection;
• Settlement value;
• Security.

Commercial mediation may allow the parties to resolve a dispute through immediate payment, instalments, debt restructuring, return of goods, revised performance or continuation of the commercial relationship.

Nevertheless, a settlement should never be based only on a promised payment.

The agreement should clearly regulate:

• Principal debt;
• Interest;
• Currency;
• Payment dates;
• Instalments;
• Security;
• Default;
• Acceleration;
• Existing enforcement proceedings;
• Release;
• Costs;
• Enforceability.

A creditor should generally avoid withdrawing enforcement proceedings, lifting attachments or granting an unconditional release before receiving full payment or adequate security.

For foreign companies, additional attention must be paid to corporate authority, apostille, translation, foreign currency, taxation and cross-border enforcement.

An experienced Turkish commercial mediation lawyer can coordinate mediation, enforcement and litigation as part of a single recovery strategy. Proper legal planning can reduce collection time, preserve assets and ensure that any settlement is not merely signed but actually capable of effective enforcement.

Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice. Turkish commercial, mediation and enforcement legislation may change. Each commercial debt should be assessed according to its contractual basis, evidence, procedural history and the legislation in force on the relevant date.