Outstanding receivables in B2B business: interest, flat fee and damages

The starting point is default. Under section 286 of the German Civil Code it arises through a reminder, but at the latest 30 days after the due date and receipt of the invoice; against consumers only if the invoice pointed out that consequence.

From the onset of default, interest can be charged: five percentage points above the base rate against consumers, nine percentage points where no consumer is involved. In business-to-business trade a flat fee of EUR 40 may also apply. A fixed follow-up date stops individual receivables from quietly ageing in the portfolio. What counts is less the perfect solution than one that is actually applied day to day.

What needs checking is the conclusion of the contract, the service rendered, a proper invoice and the payment term. Only when this chain is unbroken do the consequences of default apply. Against consumers, the notice about the 30-day rule is added.

The debtor also has to be identified unambiguously: correct company name, legal form and address. Mix-ups cause delays in the dunning procedure. The portfolio should be screened at least quarterly for cases approaching the limitation period. Everything else is subordinate to this goal: interest, flat fee and damages.

Interest is calculated to the day from the onset of default on the outstanding amount. The applicable base rate plus the statutory margin is decisive. Where default runs past an adjustment date, the period is calculated in sections.

The documentation belongs in the case file, not in a separate spreadsheet. Otherwise it cannot be found when the case moves to collection or court. Outstanding receivables lose recovery probability with every month that passes, which makes speed a success factor in its own right. Settling this point once removes the need to renegotiate it in every individual case later.

Typical risks arise less from legal questions than from process gaps. These include incomplete invoices, partial payments that were never allocated, outdated address data and a tone that escalates too early and reduces willingness to pay. Standardisation reduces effort here far more than additional checking does.

Equally critical: receivables left unmentioned out of consideration for the customer relationship. The amount does not disappear, but the default risk rises. An overview by age bracket shows immediately which outstanding receivables need attention first. The link to the subject of this article is direct: interest, flat fee and damages.

The practical consequence is changed payment behaviour. Customers who know that deadlines are monitored and default consequences are calculated pay earlier on average, without any dispute arising.

In ongoing customer relationships, clear but factual communication of the consequences works best. Transparency before the due date is more effective than pressure afterwards. For outstanding receivables, the date of the last customer response should always be recorded alongside the amount. The effort is one-off; the benefit repeats with every case.