B2B Debt Recovery: Who Is Responsible for the Costs?

Introduction: The Problem of Late Payments and the Hidden Costs of Payment Bottlenecks

In the world of B2B, timely payments are the foundation of any company's stability and growth. Unfortunately, statistics show that delays in settling invoices are a daily reality in many industries. When a counterparty delays payment, the creditor faces a dual problem: not only do they lose access to frozen capital, but they also often have to incur additional financial expenses to recover those funds. Time spent sending reminders, legal service costs, or commissions for external companies are a real burden on the budget. In this context, the key question that many entrepreneurs ask themselves becomes crucial: who bears the cost of B2B debt recovery? Understanding the legal mechanisms that allow this burden to be shifted onto the debtor is essential for effectively protecting financial liquidity.

Debt Recovery Costs in Light of the Law. Who Do the Regulations Protect?

In business-to-business (B2B) relationships, the legislator has provided a series of mechanisms aimed at protecting honest companies from the negative effects of payment backlogs. The primary legal act governing these issues is the Act on Counteracting Excessive Delays in Commercial Transactions. Its main principle is that the debtor—as the party violating the terms of the agreement and failing to adhere to payment deadlines—should bear all financial consequences associated with the delay. This means the creditor has the right to demand reimbursement for the costs they had to incur to enforce payment for the goods delivered or services rendered.

Such regulations serve a dual function: on the one hand, they compensate the creditor for their losses, and on the other, they act as a preventive measure. The prospect of incurring additional, often substantial, fees is intended to discourage counterparties from treating their business partners as a free source of financing for their operations.

Lump-Sum Compensation for Recovery Costs: €40, €70, and €100

One of the most powerful tools in an entrepreneur's hands is the right to charge a fixed, lump-sum compensation for debt recovery costs. It is sufficient for the payment deadline on the invoice or in the contract to pass, and for the creditor to have fulfilled their obligation, for them to gain the right to automatically charge the debtor a specific amount, without needing to prove the expenses incurred. The amount of this compensation depends directly on the value of the unpaid receivable:

• €40 – if the claim value does not exceed PLN 5,000.
• €70 – if the claim value is higher than PLN 5,000 but does not exceed PLN 50,000.
• €100 – if the claim value is equal to or higher than PLN 50,000.

These amounts are converted into Polish zlotys according to the average euro exchange rate announced by the National Bank of Poland on the last working day of the month preceding the month in which the receivable became due. Issuing a debit note for this amount is a clear signal to the debtor that the company is actively monitoring its receivables and does not tolerate delays.

What If the Lump Sum Isn't Enough? Reimbursement of Actual Recovery Costs

It very often happens, especially in complex B2B cases requiring advanced negotiations, legal analysis, or international actions, that the lump-sum compensation (e.g., €40) does not cover the actual expenses related to debt recovery. In such situations, the law provides for the possibility of claiming reimbursement from the debtor for actual costs exceeding the lump sum. If a company uses the services of a professional representative or a specialized debt recovery firm, the commission or operational fees can be added to the total debt amount. However, this requires proper documentation of the purpose and amount of the costs incurred (e.g., through a cooperation agreement and an invoice for the collection activities performed).

Costs of Court and Enforcement Proceedings

If the amicable stage does not yield the expected results, the creditor is forced to take the matter to court and then to a bailiff. In this case, the principle of the debtor's liability for costs is even more rigorous and precisely regulated in the Code of Civil Procedure. The general rule states that the losing party is obliged to reimburse the opponent, upon their request, for the costs necessary for the purposeful pursuit of their rights. These costs primarily include:

• Court fees for the statement of claim (dependent on the value of the dispute).
• Costs of legal representation, i.e., the remuneration of the legal advisor or attorney representing the company, awarded according to minimum rates specified in the Minister of Justice's regulations.
• Expenses for any sworn translations (particularly important in international cases).
• Costs of the enforcement clause proceedings.
• Advances for bailiff's expenses and enforcement fees at the enforcement stage.

To summarize the court stage: the entrepreneur invests their own funds to initiate the process, but after obtaining a final and enforceable payment order and successfully carrying out enforcement, it is the debtor who covers all these expenses.

Interest on Late Payments in Commercial Transactions as Additional Compensation

In addition to the reimbursement of costs directly related to the capital recovery process, interest is an extremely important financial element. In transactions between entrepreneurs, special, higher rates apply—statutory interest for late payment in commercial transactions. They are significantly higher than ordinary capital interest or interest for late payment in civil law. The purpose of such high interest is to prevent payment backlogs and to 'punish' debtors for holding onto capital that is not theirs. The accrued interest serves as a form of compensation for the creditor for lost profits due to the lack of liquid funds for their own investments and current operations.

How Can Clauses in a B2B Contract Protect Your Company from Costs?

A well-drafted commercial agreement is the first and most important line of defense against unreliable payers. Although general legal provisions give creditors powerful tools, appropriate clauses in B2B contracts or General Terms and Conditions (GTC) can significantly simplify the procedure for transferring recovery costs. What should you pay attention to when preparing documentation with a counterparty?

• Clearly define payment deadlines and the moment a claim becomes due.
• Include clauses about the automatic addition of lump-sum compensation costs in case of delay.
• Include provisions on the creditor's right to hand over the case to an external entity at the debtor's expense.
• Specify the jurisdiction and venue of the court (particularly important for contracts with foreign partners), which minimizes organizational costs for the creditor.

Good communication and transparency during the negotiation of commercial terms build the company's authority and clearly indicate that adherence to financial discipline is treated as a priority.

Debit Note for Recovery Costs – How to Implement It Correctly?

Issuing a debit note for the compensation of debt recovery costs (the so-called '€40 note') is a simple yet firm step in amicable collection. The note is not subject to VAT, which is why it is documented with a debit note rather than an invoice. It is important to issue it only after the receivable becomes due and the company has proof of fulfilling its obligation (e.g., a signed acceptance protocol, a CMR consignment note in transport, or proof of shipment in trade). Moreover, the creditor is not obliged to send a prior demand for payment to the debtor—this right arises automatically on the first day after the payment deadline has passed.

The Value of Professional Support. Why It Pays to Entrust Your Case to Specialists

Many entrepreneurs hesitate to outsource debt collection to external experts, fearing additional fees. This is a misconception, resulting from a lack of knowledge about the model where these costs can be successfully passed on to the unreliable partner. Professional actions at an early stage, consisting of firm negotiations and sending pre-litigation demands for payment along with a calculation of the statutory costs chargeable to the debtor, have a very high success rate.

• Time savings: Your accounting or sales team doesn't have to waste hours on fruitless calls and emails.
• Legal security: Procedures are conducted in accordance with current regulations, without the risk of procedural errors that could jeopardize the chance of recovery.
• Preservation of business relationships: Professionals approach negotiations factually and calmly, which often allows for maintaining good relations with a counterparty who is only experiencing temporary problems.
• Effectiveness: Legal assistance at every stage—from negotiation to bailiff enforcement—drastically increases the percentage of fully closed cases.

Conclusion: B2B Debt Recovery Is an Investment in Your Company's Security

The answer to the question of who bears the cost of B2B debt collection is unequivocal: in the final analysis, it is the debtor. Polish and EU law stands firmly behind entrepreneurs who reliably fulfill their obligations and deliver products or services on time. From lump-sum compensations of €40, €70, or €100, through the reimbursement of operational costs, to the coverage of full litigation and enforcement costs—the legal system offers a range of possibilities so that pursuing claims is not a financial burden for the creditor.

Delaying the reaction to overdue invoices only benefits the unreliable counterparty. The sooner you take firm, legally sanctioned steps, the greater the chance of seamlessly recovering the frozen capital along with the due interest and costs. Control over receivables is the foundation of stable management and long-term success in every B2B business sector.