Ten years of the IOS procedure in Belgium: taking faster and more efficient action against unpaid invoices
April 2026 - Late payments remain a structural challenge for many businesses. To enable businesses to take faster and more efficient action against unpaid (and undisputed) invoices, the legislature in our country introduced the procedure for the Recovery of Undisputed Debts (IOS) in 2016. Ten years on, this instrument remains highly relevant, although its potential is not yet being fully utilised.
A solution to a persistent problem
For many SMEs, late payments are a recurring problem that can put financial stability under pressure. When customers habitually pay invoices late, this can have a significant impact on cash flow. Even companies that are financially sound in themselves can run into difficulties if income is delayed for too long.
The figures show that the problem remains persistent. According to the latest edition of the ‘Bailiff’s Barometer’, around half of Belgian companies report being affected by late payments. At the same time, average payment terms in B2B relationships have risen in recent years. Whereas a few years ago companies waited on average just over fifty days for payment, this figure now stands at more than sixty days.
A faster alternative to court proceedings
Until the introduction of the IOS procedure, legal proceedings were often the only way to enforce payment of an unpaid invoice. That process could drag on for a long time. Companies had to initiate proceedings, wait for a hearing and then for a judgment. Only then could a bailiff actually take steps to collect the debt.
The IOS procedure offers an alternative for such situations, provided that the debt is not disputed and the invoice is between businesses. In that case, the debt can be recovered without the intervention of a judge.
In practice, the process begins with the submission of a file, which is checked for compliance with the legal requirements. A bailiff then serves the debt notice on the debtor. The debtor is given 38 days to pay or dispute the debt. If they fail to do so, the creditor obtains an enforceable title with the same legal standing as a court judgment. Further measures, such as seizure, may then follow.
In practice, it is often not necessary to go that far. The legal pressure created by the procedure is often sufficient in many cases to secure payment.
Lower costs and reduced pressure on the courts
One of the key advantages of the IOS procedure is the combination of speed and enforceability. Businesses can collect an undisputed invoice much more quickly than through traditional legal proceedings.
The cost aspect also plays a role. As a full court case is not required, the costs are lower. This brings benefits not only for individual businesses, but also at a societal level. Research shows that the average societal cost of an IOS case is significantly lower than that of traditional legal proceedings.
Since the system was introduced, around 200,000 cases have already been dealt with via this procedure. This not only represents a significant cost saving, but also a noticeable reduction in the burden on the courts.
An important role for accountants
Nevertheless, the use of the IOS procedure remains relatively limited compared to the number of unpaid invoices. A key reason for this is that many businesses are still not sufficiently familiar with the procedure.
This is where accountants and financial advisers have a clear role to play. They usually have the best insight into their clients’ financial records, including outstanding client accounts and payment arrears. As a result, they are often the first to spot that an invoice remains structurally unpaid.
By informing their clients in good time about possible debt recovery procedures, accountants can help them take action more quickly. They can also advise on the right time to initiate a debt recovery process and check whether invoices and contract terms meet the requirements for an IOS procedure.
Ten years after its introduction, the core message therefore remains the same: when an invoice is not disputed, lengthy and costly legal proceedings are often no longer necessary.
