SEPA B2B Direct Debit scheme

Collect euro receivables from your business clients automatically with a SEPA B2B Direct Debit

SEPA B2B Direct Debit

With a SEPA Business-to-Business Direct Debit Scheme, your company canb collect euro receivables from your business clients automatically with SEPA B2B Direct Debit.

We can assist you to set up the SEPA B2B Direct Debit scheme for your company or we also have for sale, a 2016 Swiss company with SEPA B2B Direct Debit scheme in place.

What is the SEPA B2B Direct Debit scheme?
With the SEPA B2B Direct Debit system, companies can initiate collection of amounts owed from debtors (on the basis of a signed collection and debit authorization mandate). In order for the owed amount to be collected via the SEPA B2B Direct Debit scheme, the debtor’s financial institution must also participate in this scheme.

See below or Contact us for more information.

 

Main features of the SEPA B2B Direct Debit scheme

  • Both the debtor and the creditor must be a company. Creditors may not use the scheme to collect payments from individuals (consumers).
  • Following receipt of the advance notification, but prior to the debit, the debtor may reject the collection via its financial institution. In the case of an authorized collection, the right of reimbursement no longer applies at a later juncture.
  • The debtor provides its financial institution with the mandate data or the SEPA B2B Direct Debit mandate. The financial institution saves the mandate data and uses this data to check whether future collections are authorized (verification of mandate data).

 

What are the benefits of the SEPA B2B Direct Debit scheme?

  • A simple way to pay for goods or services within SEPA in euros.
  • Europe-wide collection from one account in Switzerland.
  • The direct debit procedure is the same throughout SEPA.
  • Quicker order delivery and processing times compared with SEPA Core Direct Debits.
  • No right of objection for the debtor in the case of authorized collections.
  • High data quality thanks to identification of accounts using IBAN (International Bank Account Number) and of banks using BIC (Business Identifier Code).
  • Suitable for recurring or one-off payments.
  • Uniform formats (ISO 20022). The XML messages are not specific to a particular platform or programming language and enable messages to be checked for technical validity.

 

How it works
By signing the SEPA B2B Direct Debit mandate, the debtor authorizes the creditor to collect the amount that is owed and due via the debtor’s financial institution. At the same time, the debtor’s financial institution is authorized to debit the amounts due.

The creditor provides the debtor with the mandate, which the latter must sign and return. The debtor is also obliged to provide its financial institution with the relevant mandate data or a copy of the SEPA B2B Direct Debit mandate in the agreed form in good time. Additionally, any changes to the mandate data must be communicated by the debtor to its financial institution and the creditor in the agreed form and in good time.

It is the responsibility of the creditor to archive the mandate. If, with regard to recurring collections, no collection is made over a 36-month period, the creditor is required to obtain a new mandate.

The content of the mandate is standardized, but its layout may be individually designed by the creditor.

 

The mandate data in the SEPA B2B Direct Debit mandate includes:

  • Mandate reference
  • Name and address of debtor
  • IBAN of debtor
  • BIC of debtor’s financial institution
  • Name and address of creditor
  • Identification number of creditor
  • Collection type: recurring or one-off
  • Collection reference
  • Signature date of mandate and placeholder for signature
  • The mandate data must be quoted for every collection. Changes to mandate data are transferred electronically by the creditor with the next collection order.

 

Requirements (partial list)

  • EUR 50,000 bank deposit required.
  • The debtor must be a company.
  • Valid SEPA B2B Direct Debit mandates from all clients you wish to collect receivables from. The creditor must to keep the SEPA B2B Direct Debit mandates to be presented to the bank upon request
  • Debtors require an account with a financial institution that participates in the SEPA B2B Direct Debit scheme.

 

We currently have a 2016 Swiss company with SEPA B2B Direct Debit scheme in place for sale.

Contact us for more information.

 

 

 

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