{"id":5325,"date":"2025-05-26T10:14:09","date_gmt":"2025-05-26T08:14:09","guid":{"rendered":"https:\/\/www.rolling-funds.com\/?p=5325"},"modified":"2025-08-14T14:41:08","modified_gmt":"2025-08-14T12:41:08","slug":"b2b-payment-collection-what-exactly-are-we-talking-about","status":"publish","type":"post","link":"https:\/\/www.rolling-funds.com\/en\/articles\/encaissement-des-paiements-b2b-de-quoi-parle-t-on-exactement\/","title":{"rendered":"B2B Payment Collection: What are we really talking about?"},"content":{"rendered":"<p class=\"wp-block-paragraph\">In the B2B world, selling a product or service is just the first step. Once the contract is signed, sales teams often cross their fingers\u2026 hoping to get paid on time! While some payments arrive as expected, others are delayed \u2014 and that\u2019s when the real challenges of payment collection begin.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite the existence of a European directive governing <a href=\"https:\/\/single-market-economy.ec.europa.eu\/smes\/challenges-and-resilience\/late-payment_en\">extend payment terms<\/a>the situation remains concerning: over <a href=\"https:\/\/ec.europa.eu\/info\/law\/better-regulation\/have-your-say\/initiatives\/13665-Late-payments-update-of-EU-rules_en\">60% of companies<\/a> in the EU do not receive their payments on time. Small and medium-sized enterprises (SMEs) are the ones hit the hardest.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>The main obstacles to B2B Payment Collection<\/strong><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">B2B companies face a number of challenges when it comes to recovering outstanding payments. These difficulties lead to stress, additional costs, and wasted time. And among all these issues, the one most commonly mentioned by SMEs is: late payments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>When Payments are late, Cash Flow suffers<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Managing your customer accounts well is essential to safeguarding your business. <a href=\"https:\/\/www.rolling-funds.com\/en\/articles\/bnpl-b2b-transforming-lorder-to-cash-into-a-cash-flow-accelerator\/\" data-type=\"link\" data-id=\"https:\/\/www.rolling-funds.com\/articles\/bnpl-b2b-transformer-lorder-to-cash-en-accelerateur-de-cash-flow\/\">cash flow<\/a> and maintain good commercial relations. Yet late payment is a real scourge for many companies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A few figures are enough to grasp the scale of the problem:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In Western Europe, <strong>43 %<\/strong> des <a href=\"https:\/\/www.rolling-funds.com\/en\/articles\/b2b-invoice-payment-discover-the-advantages-and-a-new-deferred-payment-solution\/\" data-type=\"link\" data-id=\"https:\/\/www.rolling-funds.com\/articles\/paiement-par-facture-en-b2b-decouvrez-les-avantages-et-une-nouvelle-solution-de-paiement-differe\/\">unpaid invoices<\/a> B2Bs addressed to small businesses are paid late, and <strong>6 %<\/strong> are never recovered.<\/li>\n\n\n\n<li>Among mid-sized companies, <strong>41 %<\/strong> of payments arrive past due, with <strong>6 %<\/strong> classified as doubtful debts.<\/li>\n\n\n\n<li>In Eastern Europe, the trends are similar, with <strong>43 %<\/strong> of B2B payments delayed and <strong>6 %<\/strong> considered unrecoverable.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">When a client exceeds the agreed payment terms \u2014 for example, 30 or 60 days \u2014 they are violating the contractual conditions. However, the supplier has often already advanced the funds needed to deliver the service or product. The supplier must then commit resources, and sometimes even initiate legal action, to recover what they\u2019re owed.<br><br>In some cases, delays may be intentional, driven by a desire to preserve the client's own cash flow. While this behavior is somewhat understandable, it can have harmful consequences: penalties, tension in the business relationship, loss of trust\u2026 and most seriously, financial risk for the creditor company.<br><br><strong>What\u2019s the true cost of payment collection? Between expenses\u2026 and stress&nbsp;<\/strong><br><br>In an ideal world, businesses would always be paid on time. But in reality, late payments and unpaid invoices are part of everyday life.<br><br>When a company is unable to recover its receivables on its own, it often turns to a specialized agency. Even internally, the process can be burdensome: follow-up emails or phone calls, formal demand letters, administrative tracking\u2026 All of this takes time and consumes resources.<br><br>And when an external debt collection agency gets involved, the costs rise even more \u2014 their commissions can reach double-digit percentages.<br><br>Take this example: a \u20ac10,000 invoice handed over to an agency charging a 20% commission. The result? The company recovers \u20ac8,000 but loses \u20ac2,000 in the process. A high price to pay, especially for an SME.<br><br><strong>Disputes that delay payments&nbsp;<\/strong><br><br>Sometimes, delays aren\u2019t due to the client\u2019s bad intentions, but to disagreements \u2014 over pricing, quantities, delivery terms, service quality\u2026 These disputes often take time to resolve, require team involvement, and can strain the client relationship. Once trust is shaken, future collaboration becomes more fragile.<br><br><strong>Internal processes that need rethinking<\/strong><br><br>In many companies, payment collection is still a manual, tedious, and error-prone task. This may be due to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>overly complex collection policies, <\/li>\n\n\n\n<li>excessive reliance on paper documentation, <\/li>\n\n\n\n<li>manual payment reconciliation, <\/li>\n\n\n\n<li>or poorly integrated IT systems. <\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">All these factors slow down collection efficiency and increase the risk of mistakes, delays, and oversights.<br><br><strong>Lack of payment visibility: A barrier to cash flow<\/strong><br><br>Tracking payments across different clients, channels, and formats can quickly become a headache. And this lack of clarity has real consequences. Without clear visibility into upcoming payments and outstanding invoices, it becomes very difficult to manage cash flow effectively and oversee accounts receivable.<br><br><strong>The challenges of international payments<\/strong><br><br>Cross-border B2B payments are steadily increasing \u2014 from $137 trillion in 2020 to $150 trillion in 2022. If your business operates internationally, you\u2019re likely already familiar with the challenges:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>currency conversion,<\/li>\n\n\n\n<li>lengthy banking delays,<\/li>\n\n\n\n<li>high transfer fees,&nbsp;<\/li>\n\n\n\n<li>complex and often inconsistent tax regulations,&nbsp;<\/li>\n\n\n\n<li>and highly variable payment practices from one country to another<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These combined factors not only lead to delays but also add significant extra costs that can weigh heavily on profitability.<br><br><strong>Credit risk and bad debts&nbsp;<\/strong><br><br>Another B2B reality: not all clients pay. And some simply never will. This is where credit risk management comes in. Assessing a client\u2019s creditworthiness helps anticipate defaults and reduce losses.<br><br>But credit checks require reliable data, proper tools, and time \u2014 resources that not every company has in-house.<br><br><strong>Ineffective collection strategies&nbsp;<\/strong><br><br>In some cases, the issue stems from a lack of process:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Is communication about payment terms clear from the start?<\/li>\n\n\n\n<li>Are the available payment methods appropriate and easy to use?&nbsp;<\/li>\n\n\n\n<li>Is there an automated reminder system or escalation process for overdue payments?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Too many companies still rely on outdated, poorly digitized accounts receivable management and lack the tools to prevent delays. Yet a proactive and structured approach to payment management could help avoid many collection issues.<br><br><strong>What if there were an alternative?&nbsp;<\/strong><br><br>What if there were a solution to simplify, automate, and secure the payment process \u2014 while reducing collection costs? A proactive approach, designed to guarantee on-time payments, limit disputes\u2026 and free up teams from the mental burden of chasing down invoices?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How can B2B companies improve payment collection?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Good news: collecting payments doesn\u2019t have to be a constant struggle. While late and unpaid invoices are common challenges in B2B, there are now practical solutions to tackle them.<br><br>By automating processes, modernizing payment tools, assessing client creditworthiness, and setting clear expectations from the start, companies can secure their cash flow \u2014 and protect their customer relationships.<br><br><strong>Why take action?&nbsp;<\/strong><br><br>Fast payments are more than just convenient \u2014 they\u2019re a strategic advantage:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For cash flow, of course, <\/li>\n\n\n\n<li>For short- and mid-term financial stability, <\/li>\n\n\n\n<li>And for reputation: a company that pays \u2014 and gets paid \u2014 on time earns trust.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Set clear payment terms&nbsp;<\/strong><br><br>Before even sending an invoice, make sure your payment terms are crystal clear and agreed upon:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Payment deadline, <\/li>\n\n\n\n<li>Late payment penalties, <\/li>\n\n\n\n<li>Possible discounts for early payment.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Anticipating friction points and managing expectations helps reduce disputes \u2014 and lays the groundwork for a healthy client relationship.<br><br><strong>Automate invoicing and follow-ups&nbsp;<\/strong><br><br>Accounting or collection software can save valuable time:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Automatically generated invoices, <\/li>\n\n\n\n<li>Reminders sent at regular intervals, <\/li>\n\n\n\n<li>Real-time payment tracking. <\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The result? Fewer human errors, greater efficiency, and a faster payment cycle.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Offer online payment options&nbsp;<\/strong><br><br>B2B purchasing behavior is evolving: more and more decision-makers expect the same seamless experience as in B2C e-commerce.<br>Offering multiple payment methods (credit card, instant transfer, direct debit, installment plans\u2026) makes life easier for clients and encourages faster payments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And even if not all B2B companies are ready to sell online, offering <strong>modern payment solutions<\/strong> is a real competitive edge.<br><br><strong>Maintain proactive and consistent communication<\/strong><br><br>The foundation of effective collections? Clear and continuous communication.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Inform your clients in advance of upcoming due dates. <\/li>\n\n\n\n<li>Send reminders before and after the deadline. <\/li>\n\n\n\n<li>Automate these messages via email or SMS for smoother, more responsive follow-up.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A well-planned reminder is often more effective than a last-minute phone call.<br><br><strong>Assess creditworthiness before granting credit<\/strong><br><br>Before making <a href=\"https:\/\/www.rolling-funds.com\/en\/articles\/the-sme-lending-process-step-by-step\/\" data-type=\"link\" data-id=\"https:\/\/www.rolling-funds.com\/articles\/le-processus-de-pret-aux-pme-etape-par-etape\/\">credit<\/a> to a customer, it is essential to assess the customer's ability to pay.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Analyse their financial health, <\/li>\n\n\n\n<li>Consult credit rating agencies or request trade references,&nbsp;<\/li>\n\n\n\n<li>Use digital tools to enhance traditional credit scoring methods.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This step helps reduce the risk of non-payment and enables smarter decision-making from the start.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Encourage early payments&nbsp;<\/strong><br><br>Offering discounts for early payment can be highly effective.<br>The concept is simple: the client gets a financial benefit, and you get paid faster.<br>It\u2019s a true win-win lever, easy to implement and appreciated by business partners.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Establish a clear collections policy&nbsp;<\/strong><br><br>Formalize a collection strategy with defined steps to follow in case of late payment:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Friendly reminder, <\/li>\n\n\n\n<li>Formal demand,&nbsp;<\/li>\n\n\n\n<li>Escalation to a collection agency if needed.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Each step should follow a set timeline and comply with applicable regulations.<br>In Europe, the Late Payment Directive (LPD) governs interest on overdue payments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Be sure to mention these charges in your terms and conditions \u2014 clarity from the outset protects your business.<br><br><strong>Payment visibility &amp; reconciliation optimization&nbsp;<\/strong><br><br>Do you have a clear view of your outstanding receivables?<br>Effective management relies on tools that provide real-time insights into received payments, pending invoices, and reconciliation status.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By quickly identifying discrepancies or delays, you can adjust your follow-up actions, anticipate cash flow pressure, and manage your receivables more proactively.<br><br><strong>Managing the specifics of international payments<\/strong><br><br>Cross-border transactions come with their own set of complexities. To stay in control:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Stay informed about local regulations, especially tax and banking requirements,<\/li>\n\n\n\n<li>Use international payment solutions that simplify currency conversion and secure transfers,<\/li>\n\n\n\n<li>Explore digital technologies (fintech platforms, blockchain, etc.) that automate and streamline global payments.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">By adopting the right tools, you reduce the risks of hidden fees, banking delays, or compliance errors.<br><br><strong>Customer relationship: a often-overlooked lever&nbsp;<\/strong><br><br>Effective payment collection also depends on\u2026 excellent customer relationship management. Because even with well-structured processes, unexpected issues will arise.<br><br>To maintain a positive dynamic:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Communicate regularly, even outside of due dates,<\/li>\n\n\n\n<li>Respond quickly to questions or disputes,<\/li>\n\n\n\n<li>Maintain an impeccable level of service.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A business that listens, is proactive, and reliable inspires trust. The result? Faster payments and stronger, longer-lasting business relationships.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>B2B vs B2C: What are the differences in payment collection?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Debt collection doesn\u2019t follow the same rules when dealing with consumers (B2C) versus businesses (B2B). While the goal remains the same \u2014 recovering owed amounts \u2014 the stakes, methods, and constraints differ significantly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In B2B, we typically deal with:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Higher transaction amounts, <\/li>\n\n\n\n<li>Longer sales cycles, <\/li>\n\n\n\n<li>Customized payment terms (30, 60, or even 90 days), <\/li>\n\n\n\n<li>And key business relationships that must be preserved. <\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In other words, each client represents a potentially strategic partnership. An overly aggressive or poorly tailored approach can damage the relationship \u2014 or even jeopardize future business opportunities.<br><br>Unlike B2C, B2B collections are less tightly regulated by law. This gives companies more flexibility in how they follow up and negotiate.<br><br>However, with that freedom comes responsibility:<br>Businesses must adopt professional, measured, and effective practices to protect their reputation and commercial network.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">B2B collections require a nuanced analysis of receivables:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Who is the client? <\/li>\n\n\n\n<li>What is their financial situation? <\/li>\n\n\n\n<li>What is the history of the relationship? <\/li>\n\n\n\n<li>What\u2019s the potential impact of a dispute or legal recovery? <\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s not just about collecting money \u2014 it\u2019s about doing so without compromising trust or long-term collaboration.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are the legal steps in B2B debt collection?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In the world of B2B debt recovery, every step matters. When a client delays payment, the creditor company can initiate a progressive follow-up process with one clear goal: recovering the amounts due without damaging the business relationship.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">1.<strong>Formal notice: the first official step&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before considering any legal proceedings, sending a formal notice (letter of demand) is the recommended first action. This formal document, often drafted by a lawyer or legal firm, reminds the debtor of their obligations and outlines the potential consequences of non-payment.<br><br>It also serves to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Clarify the dispute (if needed),<\/li>\n\n\n\n<li>Show that the matter is being taken seriously,&nbsp;<\/li>\n\n\n\n<li>Open the door to an amicable resolution.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">2.<strong>Legal action: a last resort<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If no amicable solution can be reached, legal action may be considered. However, this step should remain the last resort, as it can involve:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>High costs, <\/li>\n\n\n\n<li>a deterioration in the client relationship, <\/li>\n\n\n\n<li>and significant delays.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Here\u2019s how RollingFunds is revolutionizing B2B debt collection&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of chasing payments, why not eliminate the problem altogether?<br><br>RollingFunds offers an integrated deferred payment solution for B2B companies, available throughout the EEA, online or at the point of sale.<br><br>So how does it work exactly?&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You sell. <\/li>\n\n\n\n<li>The buyer chooses deferred payment via RollingFunds (with quick onboarding and automated risk assessment).&nbsp;<\/li>\n\n\n\n<li>You get paid immediately.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">And that\u2019s it. No more follow-ups, formal demand letters, or unpaid invoices.<br><br>Immediate benefits for your business:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No more debt collection management,&nbsp;<\/li>\n\n\n\n<li>Instantly improved cash flow,&nbsp;<\/li>\n\n\n\n<li>Reduced DSO (Days Sales Outstanding),&nbsp;<\/li>\n\n\n\n<li>Preserved business relationships,&nbsp;<\/li>\n\n\n\n<li>Less stress and more time to grow your business.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Rather than dealing with the burdens of traditional debt collection, choose a smooth, fast, and secure solution. RollingFunds turns a headache into a competitive advantage.<\/p>","protected":false},"excerpt":{"rendered":"<p>RollingFunds is part of this ongoing evolution by offering advanced KYB solutions that enable compliance and risk management teams to enhance their productivity, ensure effective traceability, monitor processes in real-time, and optimally leverage business data. Contact us below to learn more about our KYB solution.<\/p>","protected":false},"author":8,"featured_media":5327,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[16],"tags":[19,18],"class_list":["post-5325","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-b2b","tag-bnpl"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/posts\/5325","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/comments?post=5325"}],"version-history":[{"count":2,"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/posts\/5325\/revisions"}],"predecessor-version":[{"id":5328,"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/posts\/5325\/revisions\/5328"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/media\/5327"}],"wp:attachment":[{"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/media?parent=5325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/categories?post=5325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/tags?post=5325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}