Business to Business Collections: Why B2B Is Not B2C
Business to Business Collections: The Operating Manual for Commercial Debt Recovery
The Fundamental Distinction
Business to business collections exist in a different legal and operational universe than consumer collections. Understanding this distinction is the difference between recovering your money and wasting time with the wrong approach.
In consumer collections, the creditor is heavily regulated — calling hours, validation notices, cease-and-desist obligations, and strict prohibitions on certain contact methods. In B2B collections, most of these restrictions don't apply. The FDCPA governs consumer debt. The EU Consumer Credit Directive governs consumer transactions. Neither applies when one business owes another business money.
This gives B2B creditors more tools and more flexibility — but also means the standard consumer collection playbook is the wrong playbook entirely.
What B2B Collections Actually Involve
Higher stakes, fewer claims. The average B2B collection involves thousands or tens of thousands in outstanding invoices, not hundreds. Each claim justifies more attention, more resources, and more sophisticated strategy than a consumer collection.
Multiple decision-makers. Consumer debt has one debtor. B2B debt has accounts payable, the CFO, procurement, and potentially the CEO. Effective B2B collection identifies and engages the right decision-maker — the person who can authorise payment, not just acknowledge the invoice.
Relationship preservation. In many B2B situations, the creditor wants to continue doing business with the debtor after the debt is resolved. This requires diplomatic handling that consumer collection agencies aren't designed to provide.
Cross-border complexity. B2B transactions frequently cross borders. A manufacturer in Germany selling to a distributor in Spain creates a debt that implicates two legal systems, two languages, and two sets of enforcement tools. B2B collection agencies must navigate this complexity — or have network partners who can.
The B2B Collection Timeline
The data on B2B collection timing is consistent across jurisdictions and industries. Claims placed within 60 days of the due date recover at 80-90%. Claims placed at 90 days: 70-75%. At 180 days: 50-55%. At 12 months: 25-30%. The curve is not linear — it accelerates after 90 days.
The practical implication: your internal AR process should have a hard cutoff at 60-75 days. After that, every day of internal handling costs more in lost recovery than the contingency fee a professional agency would charge.
Choosing a B2B Collection Partner
Industry matters. A B2B collection agency that specialises in commercial and industrial debt understands the payment patterns, dispute types, and negotiation dynamics specific to business transactions. Consumer collection agencies operating in the B2B space apply consumer tactics to commercial situations — and get consumer results.
Jurisdiction matters. The agency must have capability in the debtor's country. This means local language, local legal knowledge, and local enforcement access — not just a phone number and a postal address.
Fee structure matters. Contingency (no recovery, no fee) is the standard for amicable B2B collection. Upfront fees before any collection activity should be questioned. Legal costs should be disclosed and approved before any filing.
B2B collections is a specialist discipline. Treat it as one, and recovery rates reflect the difference.
