Why B2B debt recovery requires a structured approach
In commercial relationships between businesses, an invoice issued does not mean payment is guaranteed. Late-paying customers, partial disputes or simple administrative oversights can quickly erode the working capital of a Swiss SME. Unlike consumer credit, B2B credit is not subject to the specific protections of consumer credit law: the rules derive mainly from the Code of Obligations (CO), the Federal Act on Debt Enforcement and Bankruptcy (SchKG) and the contractual terms agreed between the parties.
A well-organised recovery process is not only about securing payment, but also about documenting every step for potential legal action, customer risk assessment and the correct accounting of interest, expenses and bad debts. Businesses using accounting software such as Accountex can link due dates, reminders and accounting entries in a single workflow, reducing errors and delays between administration and credit management.
This guide outlines the typical stages of B2B debt recovery in Switzerland — from a friendly reminder to debt enforcement (betreibung) — with reference to relevant timelines, recoverable costs and the impact on the balance sheet under Swiss accounting standards.
Timelines and deadlines in B2B commercial credit
In Swiss B2B trade, the absence of an explicit due date does not automatically imply a standard 30-day term: without agreement, the debt is generally due immediately (Art. 75 CO). Commercial practice often provides for 30 days net; if that term is stated in the contract or invoice, default interest accrues automatically on the due date (Art. 102 para. 2 CO). Knowing these reference points is the starting point for calculating default interest and initiating recovery correctly.
| Stage | Indicative deadline | Legal basis / practice |
|---|---|---|
| Invoice due date | 30 days (usual practice, if agreed) | Commercial practice; Art. 75 and 102 para. 2 CO if term agreed |
| First reminder | 5–10 days after due date | Good commercial practice, no legal obligation |
| Formal reminder | 15–30 days after due date | Notice before legal action; often required contractually |
| Default interest | From the date of default | Art. 104 CO — 5% per annum if not agreed; contractual if agreed |
| Payment order (betreibung) | After reminders fail (typically 30–60 days) | SchKG — uniform federal procedure, cantonal offices |
| Debtor's objection | 10 days from notification | Art. 74 SchKG — Rechtsvorschlag |
| Continued enforcement | Variable (weeks–months) | If no objection or after court judgment |
| Ordinary limitation period | 10 years (ordinary) | Art. 127 CO; 5 years under Art. 128 CO for certain claims; interruption through betreibung or court action (Art. 135 CO) |
The three stages of recovery: reminder, enforcement, litigation
A graduated approach increases the likelihood of collection without legal costs and creates a documentary trail useful in the event of dispute:
1. Reminder and demand
A written reminder (email or registered letter) states the amount, invoice number, overdue due date and a new payment deadline. In B2B, it is permissible to mention default interest and recovery costs if provided for in the contract or general terms and conditions.
Documenting every contact in Accountex — customer notes, payment promises, disputes — facilitates subsequent decisions and continuity of service when internal contacts change.
2. Betreibung (debt enforcement)
Betreibung is the Swiss debt enforcement procedure for collecting monetary claims. The creditor submits a payment order to the competent cantonal debt enforcement office (debtor's domicile or registered office). Since 2019, electronic enforcement (e-Betreibung) has been available in all cantons, with optional use for the creditor.
If the debtor does not lodge a Rechtsvorschlag within 10 days and does not pay within 20 days of the payment order, the creditor may request continued enforcement (Art. 69 and 88 SchKG): attachment or, if the debtor is insolvent, bankruptcy proceedings. The costs of the procedure are borne by the debtor, unless the court decides otherwise; the creditor must advance them.
3. Litigation and bankruptcy
If the debtor lodges an objection (Rechtsvorschlag), the creditor must have the objection set aside or obtain an enforceable title (judgment, authenticated deed or payment order). If assets are insufficient, continued enforcement may lead to bankruptcy (Konkurs) under the SchKG.
In bankruptcy proceedings, unsecured B2B claims rank pari passu with other ordinary creditors. Timing and recovery rate depend on available assets and the complexity of the estate.
Enforcement procedure step by step
Betreibung follows a standardised process at federal level, with jurisdiction vested in the cantonal office at the debtor's domicile or registered office:
- Submission of the payment order: the creditor states the amount, basis of the claim (invoice, contract) and debtor details. Electronic enforcement (e-Betreibung) may optionally be used in all cantons.
- Notification to the debtor: the office notifies the payment order. The debtor may pay in full within 20 days, propose an instalment plan or lodge an objection within 10 days.
- Objection (Rechtsvorschlag): suspends enforcement. The creditor must take court action to have the objection set aside or obtain a judgment.
- Continued enforcement: if there is no objection or after an enforceable title is obtained, enforcement proceeds through attachment of assets, wages or bank accounts, or bankruptcy proceedings if the debtor is insolvent.
- Distribution: proceeds from realisation cover legal costs first, then the claim. Any surplus, if any, is returned to the debtor.
Before initiating betreibung, verify that the claim is liquid, due and undisputed — at least from the creditor's perspective. Substantiated disputes on the merits (defective goods, non-delivery) can block enforcement and lead to costly litigation.
Recoverable costs and interest in B2B
Unlike consumer credit, in B2B the parties may freely agree (within the limits of the CO) on default interest and recovery costs:
| Item | Amount / rate | Operational notes |
|---|---|---|
| Statutory default interest | 5% per annum (if not agreed) | Art. 104 CO — higher rate permitted if agreed |
| Reminder costs | CHF 20–100 per letter | Recoverable if provided for contractually or tacitly accepted |
| Betreibung costs | According to federal GebV SchKG tariffs (from approx. CHF 20) | Payable by the debtor; advanced by the creditor |
| Legal fees | According to cantonal tariff | In the event of objection or dispute on the merits |
| VAT on costs | 8.1% (standard rate 2026) | Recovery costs invoiced to the debtor are generally taxable |
Including clear clauses on interest and costs in general terms and conditions of sale reduces disputes. In Accountex, recording principal, interest and recovery costs separately enables accurate reporting on financial income and legal costs.
Accounting impact: from invoice to write-off
Debt recovery affects several balance sheet items. Correct accounting is essential for SMEs subject to audit or that must present reliable financial statements to banks and investors:
During recovery
- The receivable remains on the current assets (trade debtors) until collected or written off.
- Accrued default interest is recorded as financial income when collected or invoiced to the debtor.
- Advanced betreibung costs are accounted for as a receivable from the debtor or as an expense, depending on the likelihood of recovery.
- Partial payments reduce the trade debtors balance without automatically closing interest and ancillary costs.
Losses and impairments
- If recovery appears unlikely, a value adjustment is required under Art. 960b CO (adjustment to realisable value).
- A definitive write-off (cancellation of the receivable) is recorded to bad debt expense, tax-deductible if the receivable had previously been recognised as revenue.
- Subsequent recovery of receivables already written off is accounted for as extraordinary income or as a reversal of losses, according to the chart of accounts adopted.
- Document the decision (unsuccessful betreibung, bankruptcy closed without dividend) to support tax deductibility.
Accountex allows each accounting entry to be linked to the original invoice and recovery status, generating an up-to-date receivables report for operational management and for the auditor.
Prevention: reducing at-risk receivables before the first reminder
A good recovery process starts before default. Typical preventive measures for Swiss B2B:
- Credit check: commercial register extract, debt enforcement register extract (Betreibungsregisterauszug) with documented legitimate interest under Art. 8a SchKG — often with the customer's consent — before granting high credit limits.
- Clear payment terms: payment deadline (e.g. 30 days net), default interest and a recovery costs clause in the GTC or framework contract.
- Timely invoicing: errors in address, VAT or order references are among the most frequent causes of delay — not insolvency.
- Due date monitoring: dashboard of overdue receivables and ageing report (0–30, 31–60, 61–90, over 90 days) to intervene in good time.
- Advance payment or guarantees: for new customers or material amounts, deposit, bank guarantee or credit insurance.
Operational checklist for the administrative team
- Verify that the invoice is correct, sent and recorded with a due date consistent with the contract or the term stated on the invoice.
- Send a friendly reminder within 7–10 days of the due date, with a copy to commercial contacts.
- After 20–30 days, send a formal reminder with notice of legal action and an updated amount including interest.
- Assess the debtor's situation (dispute, temporary difficulty, probable insolvency).
- Where appropriate, initiate electronic betreibung — retain the receipt and procedure number in Accountex.
- Record partial payments, interest and costs with correct allocation to accounts.
- In the event of bankruptcy or irrecoverability, document and proceed with write-off, with value adjustment if necessary.
- Update the customer assessment for future commercial decisions and credit limits.
Conclusion
B2B debt recovery in Switzerland rests on a balance between commercial pragmatism and established legal tools. Timely, documented reminders often avoid betreibung; when enforcement becomes necessary, clarity of the claim and traceability in accounting make the difference between swift collection and lengthy, costly litigation.
Integrating due date monitoring, recovery workflow and accounting entries in a single system — such as Accountex — enables SMEs and fiduciary firms to protect liquidity, meet obligations for proper balance sheet valuation and focus effort on cases that truly require legal action.