For many foreign companies doing business in Sweden, understanding how to manage invoicing, payment terms, and debt collection is essential to maintaining healthy cash flow. While Sweden is known for its transparent business practices and relatively low levels of payment disputes, overlooking local rules and cultural norms can still cause unnecessary delays and financial risk. By learning the invoicing process, typical credit arrangements, and the legal framework for debt recovery, you can ensure smoother transactions and stronger business relationships.
1. Understanding B2B Invoicing Standards in Sweden
Invoices in Sweden must meet specific requirements to be valid for tax and legal purposes. Missing or incorrect information can cause delays in payment or create problems during audits.
- Include the seller’s and buyer’s full legal names and addresses.
- Provide a unique invoice number and the invoice date.
- Specify the goods or services provided, including quantities, unit prices, and total amounts.
- State VAT separately, with the applicable VAT rate (if VAT is charged).
- Include your corporate registration number and VAT registration number.
While electronic invoicing is increasingly common, especially in the public sector, B2B transactions still often involve PDF or paper invoices. However, e-invoicing formats like Peppol BIS are gaining traction, and some large clients may require their use.
2. Typical Credit Terms in the Swedish B2B Market
Sweden’s business culture values fairness and clarity in payment terms. Long credit periods are less common than in some other countries, and late payment is generally not tolerated.
- Standard B2B credit terms are often 30 days net from the invoice date.
- Some industries, particularly manufacturing and construction, may agree on 45 or 60 days, but this is the exception rather than the rule.
- Prepayment or shorter terms may be required for new clients or high-risk transactions.
- Clear agreements on payment terms should be included in contracts or order confirmations.
Swedish law allows interest to be charged on overdue payments, typically based on the Swedish reference rate plus an additional percentage set by the creditor.
3. Reducing Credit Risk Before It Becomes a Problem
Before offering credit terms to a Swedish customer, it is wise to check their financial standing. While Sweden has transparent company records, some due diligence is still essential.
- Use credit reference agencies to assess a company’s payment history and solvency.
- Request trade references, especially for larger credit amounts.
- Use phased invoicing or partial prepayments for large or long-term projects.
In many cases, a small investment in credit checks can prevent major losses later.
4. Handling Overdue Payments Professionally
Even in Sweden’s generally reliable payment environment, overdue invoices can happen. A clear and polite follow-up process can protect the relationship while encouraging payment.
- Send a friendly reminder shortly after the due date.
- If payment is still not received, send a formal payment demand (betalningspåminnelse) that includes late payment interest and reminder fees where applicable.
- Document all communication with the debtor.
In many cases, prompt and professional communication is enough to resolve the issue without legal escalation.
5. The Debt Collection Process in Sweden
If payment is still not made after reminders, you may need to involve a debt collection agency (inkassobolag) or take legal steps. Sweden has a regulated process for debt recovery.
- Debt collection agencies must follow strict rules under the Swedish Debt Collection Act.
- The creditor can apply to the Swedish Enforcement Authority (Kronofogden) for a payment order (betalningsföreläggande).
- If the debtor disputes the claim, the case may proceed to court.
Working with a local collection partner can ensure compliance with Swedish regulations and improve the chances of recovery without damaging your reputation.
6. Building Long-Term Payment Reliability
Maintaining good invoicing practices, clear terms, and respectful communication helps foster trust with Swedish business partners. This not only reduces the risk of late payment but also strengthens your reputation in the market.
- Set expectations from the start of the business relationship.
- Be consistent in enforcing payment terms.
- Reward reliable payers with better terms or incentives for early payment.
From First Invoice to Last Payment
Managing invoicing, credit terms, and debt collection in Sweden is not just about following the rules—it’s about understanding local business culture and building trust. By combining compliance with professionalism, you can keep cash flow steady, reduce disputes, and maintain strong client relationships. The companies that succeed in Sweden are those that balance firmness on payment matters with respect for their partners.
Need help with invoicing, credit risk assessment, or debt collection in Sweden? CE Sweden can guide you through the entire process and connect you with reliable local partners.
