When is a solvency check useful?
Such an assessment is particularly useful when reminders go unanswered, a payment plan is requested or you are unsure whether further escalation is worthwhile. When dealing with a company, it can help you decide more quickly whether to wait, follow up more closely or proceed with formal recovery. It is especially relevant for larger outstanding amounts, as making the wrong decision can be more costly.
A solvency check can also be useful in advance when assessing a new business customer, but with an existing non-paying customer, the focus is usually on recoverability and the recovery strategy.
What information does the assessment provide?
In practice, you look at identification details, address and company information, public records, indications of seizures, insolvency or other proceedings, as well as indications of assets, income or ongoing liabilities. For companies, factors such as annual accounts, publication status and overall financial health also play a role.
For individuals, the information available is more limited due to privacy rules and GDPR, which means that not every financial source is freely accessible. The result is therefore not a complete financial file, but a practical assessment of risk, financial capacity and recoverability.
A basic or more extensive check?
A basic check is often sufficient to determine whether further recovery makes sense. It gives you an initial picture of the debtor and any potential obstacles.
A more extensive check only becomes truly relevant when you are further along in the process and want a clearer understanding of which enforcement measures are likely to be effective. The more extensive the assessment, the more important it is to keep its purpose clear: not to gather more information than necessary, but to obtain information that helps you make a better decision about the next step.
What do you do with the outcome?
The value of a solvency check lies in the decision that follows. A favourable indication may support taking a formal recovery step. A weaker indication may instead help you limit costs, negotiate more firmly or prioritise the case differently.
In many cases, the assessment is therefore less of an end point and more of a filter: you use it to determine more quickly which course of action makes business sense.
How can Unpaid help with unpaid B2B invoices?
For undisputed B2B invoices in Belgium, Unpaid links this approach to the Belgian IOS procedure, as provided for in the Act of 19 October 2015 and Articles 1394/20 to 1394/27 of the Belgian Judicial Code.
With Unpaid, you first receive this solvency check as an initial indication of the chance of success, never as a guarantee of payment. If your case is suitable and you want to know whether your invoice qualifies for the RUD procedure. You can start the process online and follow the procedure transparently, without a subscription, minimum invoice amount or exclusivity commitment.
A bailiff is then instructed within five working days. The debtor subsequently has 38 days to pay or request a payment plan. If payment is not made, an enforceable title may follow for eligible cases.
When starting the procedure, you pay an advance for the bailiff. Subject to clearly defined exceptions, this advance is your maximum cost and is reimbursed when the debtor pays.
Frequently asked questions about debtor solvency checks
What is the difference between solvency and creditworthiness?
Solvency looks at financial capacity and the extent to which financial obligations can be met. Creditworthiness is broader and also takes into account payment behaviour, risk assessment and the likelihood that a party will pay on time.
Does a solvency check guarantee that you will get your money back?
No. It is a tool for better assessing recoverability and risk. A positive outcome provides greater clarity, but does not guarantee payment. A negative outcome does not mean that payment is impossible either, only that the chances are lower.
How much does a solvency check cost?
That depends on the level of detail and the type of debtor. A basic check is less expensive than a more extensive analysis. More important than the price alone is whether the assessment helps you avoid unnecessary recovery costs or choose a better next step.
Is such an assessment necessary for every outstanding invoice?
Not always. For smaller amounts or straightforward cases, taking swift legal action may make more sense than carrying out an extensive preliminary assessment. The right choice depends on the amount, the supporting documents, the debtor’s response and the type of case.
With Unpaid, an initial check is always carried out free of charge when you submit your case.
When is Unpaid suitable and when is it not?
Unpaid focuses on undisputed B2B invoices. If the case is not B2B or the invoice is disputed, it will usually require a different legal approach from the IOS procedure.
If you are unsure about the process, find out how the IOS procedure works.
Want to know if your case is viable?
If you have an unpaid and undisputed B2B invoice, the first step is usually no longer a lengthy discussion, but a quick feasibility check.
If you are first looking for initial guidance on unpaid invoices.
