The late payment or non-payment of invoices is a huge problem for Belgian companies. Currently, one in three invoices is still being paid late. This forces many companies to write off a large amount from these invoices given the chance that collection diminishes the longer the payment term has passed.

In particular, the B2C segment is very vulnerable. A credit check on these customers just like for the B2B segment is virtually impossible. And, it demands huge amounts of time to guarantee the collection of B2C invoices.

Many companies increasingly protect themselves by requiring cash payment in this segment of the market. Until recently, online retailers have been spared this decimation. Consumers were always required to prepay using VISA, BANCONTACT, or bank transfer, which meant the write-off percentage was zero.

Remarkably, more and more online retailers are offering credit to their customers. The big question is whether or not the marketing (added) value attached to this practice balances against the possible losses from late payment or non-payment of invoices. This is why FlexCredit jointly with the University of Antwerp has initiated a master’s study to bring clarity to this subject.