Can you recover goods that haven’t been paid for?
Seeing the goods is not authority to take them
A materials supplier sees unpaid stock in a customer's warehouse. The customer is still trading and no insolvency practitioner has been appointed. The supplier wants to send a truck before the stock is used, while the buyer says it may return part of the order instead of paying. A proposed return could resolve the account, but it needs agreed terms and a lawful collection process before either side treats the invoice as settled.
Find the ownership and security terms
Locate the terms accepted for the supply and any retention-of-title clause. The PPSR explains that such arrangements can create a security interest. Registration can be important to protecting that interest when a customer fails.
Do not assume a clause printed on an invoice is effective for every delivery. Have the accepted terms and any registration checked. Ask which rights apply to this unpaid supply and whether an agreed return would change them. Registration itself does not tell the driver what can be collected or authorise entry.
Identify the goods accurately
Prepare delivery dockets, product descriptions, serial numbers, photographs and quantities. Establish which goods remain separate and which have been installed, used or mixed. Keep the evidence specific to the unpaid supplies.
A general claim to everything bearing your brand is unlikely to answer all ownership questions. Other goods may have been paid for or supplied by someone else. Accurate identification reduces the risk of taking property that is not subject to your claim.
Agree the return with the trading customer
Ask the buyer to confirm in writing whether it agrees to inspection or return, which items are included and who can authorise access. Arrange a suitable collection time and responsible site contact. Do not enter premises or remove goods without proper authority, even if your invoice remains unpaid.
If the buyer refuses, disputes ownership or offers only different stock, get legal advice before taking further action. Do not turn a proposed voluntary return into forced repossession. If an insolvency appointment emerges, stop treating this as an ordinary customer arrangement and obtain advice on the practitioner-led process.
Set the credit before accepting the return
Agree how the returned stock will be inspected and valued, including damaged packaging, missing quantities and transport costs. Decide whether credit is conditional on that inspection. The buyer may expect the full invoice to disappear while the supplier expects only a partial credit; resolve that difference before the truck arrives.
Record the credit actually issued and reconcile the remaining account after collection. Keep the signed collection record, condition photographs and any settlement terms together. A return can be commercially sensible, but accepting stock should not leave either party guessing what was settled or what balance remains payable.
Arrange a lawful and recorded recovery
Locate accepted supply terms and relevant PPSR records.
Identify the unpaid goods with delivery and ownership evidence.
Obtain an authorised recovery process and calculate its net value before collecting.
Call CRP today about coordinating advice on unpaid goods and recovery options.