Sell unpaid invoices: liquidity without waiting for the courts

What selling an unpaid invoice means

Selling an unpaid invoice means assigning the right to collect that the invoice represents to a third party who buys it at a discount. You stop chasing the debtor and receive certain money; the buyer takes on the risk and the time to collect. It is an ordinary assignment of the claim: you do not need the debtor's permission, you only notify them for it to be enforceable.

It works for a single invoice or several from the same client. What matters is a payment obligation that is due, enforceable and documented.

It is not the same as factoring

Factoring is a financial product to advance receivables that have not yet failed. Selling an already-unpaid invoice on a marketplace unlocks value from a claim a bank probably would not advance anymore.

How much unpaid invoices sell for

The buyer pays below face value because they take on risk and time. As a market reference, discounts of 35%-45% are common, within a wide 25%-75% range depending on the quality of the file. A recent invoice with a signed contract and delivery note and a solvent debtor sells higher; an old invoice with no evidence or an untraceable debtor sells lower.

When to sell instead of claiming

Going to court makes sense when the debtor is solvent and the debt is well documented, but it costs time and money and does not guarantee payment: winning does not make the debtor solvent. Selling makes sense when you need liquidity now, when the debtor shows signs of insolvency, or when you would rather not spend more resources chasing payment. It is not all-or-nothing: you can sell part of your receivables and claim the rest.

How to sell, step by step

1. 1

   You list the invoice

   Amount, type of debtor, sector and available paperwork. No personal debtor data.

2. 2

   You receive offers

   Interested investors send purchase offers, confidentially.

3. 3

   You pick the best

   You compare price and terms. Only then is the detail shared with the buyer.

4. 4

   You sign the assignment

   The assignment is formalised, the debtor notified, and you get paid.

Paperwork that adds value

The better you prove the debt, the better the price and the faster you close. Gather, if you have them:

• The invoice and the delivery note.
• The contract or accepted quotation behind it.
• The formal notices, emails or letters demanding payment.
• Any acknowledgement of debt from the client (an email saying "I'll pay next week" is worth a lot).
• The judgment or order, if you already claimed and won.

Late-payment interest

In commercial transactions between businesses, the EU Directive 2011/7/EU on late payment sets payment terms —30 days by default, up to 60 by agreement— and default interest when they are breached. That interest is part of the claim and is assigned along with the invoice, which strengthens its value to the buyer.

Mind the limitation period

Every jurisdiction sets a limitation period after which a debt can no longer be enforced. An invoice approaching that deadline loses value sharply, because the buyer knows the window to collect is closing. Selling early protects the price.

Common mistakes

• Waiting "a bit longer": every month the invoice is worth less and closer to time-barring.
• Not keeping evidence: without a contract or delivery note, the discount jumps.
• Asking for 100%: a realistic asking price attracts more offers.
• Selling to the first offer: let buyers compete.

How to set a realistic asking price

The asking price sets the tone for the whole negotiation. Asking for 100% scares off offers; starting too low leaves money on the table. A sensible starting point is to place your expectation within the market range (receiving 55%-65% of face value in normal cases) and adjust it for how urgently you need the cash and how strong the file is. Leave room for buyers to improve their offers by competing: that competition is your best tool to raise the final price.

One invoice, several exits

Selling is not the only play, and sometimes it pays to combine. You can claim the easy part yourself and sell the uncertain part; or try a payment agreement and, if it fails, assign the invoice. What does not pay is leaving it idle: every month, the invoice ages, loses value and edges toward the limitation period. Deciding early —sell, claim or combine— always keeps more value than waiting.

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