B2B debt collection

B2B debt collection, or debt collection between two companies, is in many ways similar to debt collection between a company and a private individual, often referred to as B2C debt collection.

But there are a few things that stand out between B2B debt collection and B2C debt collection - differences that we highlight in this article.

What is B2B debt collection?

B2B stands for business-to-business, of course. In other words, in B2B debt collection, the creditor and debtor are both businesses.

B2B debt collection is in many ways similar to traditional debt collection - exactly what you see when the debtor and creditor are private individuals or private individuals and companies.

Although B2B debt collection is similar to traditional debt collection in many ways, there are still things that creditors, debt collection companies and lawyers need to be aware of when the debtor and creditor are business owners.

Among the differences is that businesses often find it easier to go bankrupt or close down than private individuals - and thus, theoretically, there may be a greater risk when your debtor is a business rather than a private individual.

B2B debt collection also differs in that if the debtor is a business, the creditor has the option of imposing a compensation fee in the reminder and/or collection process of DKK 310.

Compensation fee

The compensation fee is a fee that Danish and European companies were allowed to charge their B2B customers in 2013.

The compensation fee should be seen as an amount that compensates for the extra work involved in dealing with bad payers.

The compensation fee can be up to €40 - that's $310 - and can only be charged once per case.

The compensation fee may be charged before, during and after any reminder or collection process, and the fee has nothing to do with other fees such as interest, reminder fees or similar. The compensation fee may only be charged in B2B cases, i.e. where a creditor deals with a debtor who is a trader - and thus also in connection with B2B debt collection.

You can read much more about the compensation fee here.

Get help with your B2B debt collection with Collectia

At Collectia, we have many years of experience with debt collection, and in particular B2B debt collection.

We know how a professional debt collection process should be handled - both for you as a creditor and your debtors.

We make it easy for you as a creditor to transfer your debt collection cases to us and give you a wide range of options - from manual upload via our innovative and user-friendly platform to system-to-system transfer via API, for example.