The idea sounds logical
You delivered the goods, the work has been done. But your customer simply doesn’t pay, and you don’t feel like waiting months longer or paying legal fees. Selling your invoice to a third party can then seem like an attractive solution.
This does exist. It’s called factoring or assignment of debt.
In practice:
- You transfer your invoice to a third party
- They pay you part of the amount
- They then try to collect the full amount from your customer
It sounds simple, but there are important caveats.
Factoring is not a solution for problematic invoices
In theory, you can sell any invoice. In practice, factoring companies are highly selective. They look for large volumes, reliable customers, and predictable payments. What they specifically avoid are customers who haven’t paid for months.
On top of that, you never receive 100% of your invoice. Discounts often range from 10% to 30% or more. In concrete terms, this means that for a €1,000 invoice, you may only receive between €700 and €900.
In addition, with recourse factoring, you still carry part of the risk, even after you’ve “sold” the invoice. In short, if the factoring company cannot collect the debt, they can reclaim the amount from you.
Non-recourse factoring does exist, but it is more expensive and even more selective.
In other words: you get rid of your invoice, but at a significant cost.
What if you want to recover the full amount?
In that case, debt collection is almost always a better option than transferring the invoice.
In Belgium, there is a specific procedure for undisputed B2B invoices: the IOS procedure. You submit your case digitally, your invoice is checked for legal compliance, and a bailiff visits your customer within five working days to serve a formal notice.
No court. No lawyer. No months of waiting.
And what does it cost?
With Unpaid, you pay an upfront fee when starting your case. This covers the legal review of your file and the bailiff’s costs. That upfront fee is also the maximum amount you risk.
If the costs increase, Unpaid covers the difference. If your invoice is successfully recovered, you receive 100% of the principal amount, and your upfront fee is fully reimbursed.
This is possible because Unpaid is compensated through the penalties and interest that your customer is required to pay.
So you know exactly where you stand from the start.
An essential point that is often overlooked
Whether you sell or collect your invoice, everything depends on having a Example of a good invoice correct invoice. This includes a clear due date, accurate details, and valid general terms and conditions.
In case of assignment, your customer must also be properly informed of the transfer, otherwise, it has no legal value.
Summary
Transferring or selling an invoice is possible, but you will always lose part of the amount and give up control.
If you want to recover the full amount, legal collection via Unpaid is a faster and more transparent alternative.
Submit your case today, you’ll know within five working days whether we can proceed.