An invoice that remains unpaid after its due date is more than an administrative issue. Accumulating late payments put pressure on cash flow, increase working capital requirements and consume finance teams’ time. When a customer fails to pay on time, a prompt and structured approach can improve the likelihood of recovery while preserving the commercial relationship whenever possible. In Belgium, the process can move from an amicable reminder to more formal or judicial steps.
What is a debt collection procedure?
Debt collection covers the steps taken by a creditor to obtain payment of a due and payable debt. In a B2B relationship, the debt may arise from goods delivered or services performed but not paid within the agreed period.
The Belgian framework includes the Act of 2 August 2002 on combating late payment in commercial transactions and the European framework established by Directive 2011/7/EU. The rules that apply depend on the file, the contract, the nature of the claim and whether the debt is disputed.
The main stages of B2B debt recovery
1. Verify the claim and understand the delay
Before taking further action, verify that the file clearly supports the claim:
- the contract, accepted offer or purchase order;
- the invoice, outstanding amount and due date;
- the applicable general terms and conditions;
- proof of delivery or performance;
- communications with the customer;
- any dispute or commercial disagreement.
This review helps distinguish an administrative oversight from temporary liquidity pressure, a commercial dispute or a broader deterioration in customer risk.
2. Contact the customer promptly
The first reminder should clearly identify the invoice, outstanding amount and missed due date. Contact may also clarify the reason for the delay and, where appropriate, secure a credible payment date.
Keep the reminders and the debtor’s responses. Monitoring DSO, the aged receivables report and customer exposure also helps identify deteriorating debts earlier.
3. Formalise the payment request
If initial reminders do not produce a result, the request can become more formal. The letter should describe the claim, recall the due date, request payment and preserve evidence of delivery. Any interest or compensation claimed must be consistent with the contract and the applicable Belgian legal framework.
4. Choose between amicable and judicial recovery
Amicable collection seeks payment without court proceedings. It may include structured contacts, negotiation or, where appropriate, a documented payment plan.
Judicial action may be considered when amicable attempts fail, the debtor does not cooperate or an enforceable title is required. The approach depends in particular on whether the debt is disputed. Belgium provides a specific procedure for certain undisputed monetary debts between businesses. Depending on the procedure, a lawyer or judicial officer may need to be involved.
5. Monitor enforcement and insolvency risk
An agreement or enforceable title does not automatically close the file. Payments must be monitored and new defaults require action. If the debtor shows signs of insolvency or enters collective insolvency proceedings, the strategy must be adjusted and any applicable deadlines checked promptly with a competent professional.
A Belgian consideration: the multilingual environment
Belgium has several official languages. The language used for formal steps or proceedings may depend on the circumstances and the competent court. For foreign creditors, complete documentation, correct identification of the debtor and appropriate language management are particularly important.
Domestic and international debt recovery
When the debtor is located abroad, the creditor must consider jurisdiction, applicable law, identifiable assets and any available European mechanisms. A collection organisation with an international presence can facilitate local coordination and file monitoring.
Preventing late payment before collection becomes necessary
- assess a customer’s financial health before granting credit;
- set credit limits that reflect the level of risk;
- monitor changes in payment behaviour;
- track DSO, aged receivables and disputes;
- document orders, deliveries and payment terms;
- act promptly after the first material delay.
Entrusting debt collection to Coface
Outsourcing may help when unpaid debts consume excessive internal capacity, specialist communication is required or the debtor is located abroad. The approach should remain proportionate to the file and focus on recovery while considering the commercial relationship.
Is an invoice still unpaid? Find out how Coface can support the recovery of your receivables in Belgium and internationally. |
Frequently asked questions
When should a business follow up an unpaid invoice?
Monitoring should begin from the due date. Prompt action helps identify an administrative issue, dispute or payment difficulty before the file deteriorates.
What is the difference between amicable and judicial recovery?
Amicable recovery seeks payment without court proceedings. Judicial recovery seeks a decision or enforceable title that may support compulsory enforcement where necessary.
Does a disputed debt follow the same process?
No. A genuine dispute must be investigated and documented. Simplified procedures for undisputed debts do not necessarily apply to a commercial dispute.
Do the same rules apply to consumers?
No. Consumer debt collection is subject to specific protective rules. This article focuses primarily on commercial B2B claims.
Sources
- SPF Justice - Recouvrement de dettes d’argent non contestées
- SPF Justice - Huissier de justice
- SPF Économie - Retard de paiement dans les transactions commerciales
- EUR-Lex - Directive 2011/7/UE concernant la lutte contre le retard de paiement
- Portail e-Justice européen - Créances pécuniaires