From February 2016 the company may suffer problems if cash management has not adapted to the SEPA rules. It is therefore essential to check that your company complies with each and every one of the requirements established in these regulations.SEPA (single euro payments area) was first introduced in February 2014 but given that it was impossible to meet this deadline, the European Commission extended it until February 1, 2016 as the deadline for migration to SEPA rules.Steps to adapt to SEPA before February 2016:1. Know the IBAN and BIC of customers and suppliers.2. Include the IBAN and BIC on our invoices.3. Choose from the basic scheme (CORE) or the company scheme to Business (B2B):
- Basic scheme CORE (Rule 19-14):
The CSB-19.14 direct debit allows the management of electronic and automated path of charges between legal entities and / or individuals through a charge to the payer’s account. This scheme allows the creditor to make a charge on the debtor’s account, under the authorization of an automatic payment or mandate.
To do this, you must have an automatic payment or existing mandate at the time of issuance of the receipt. Keep in mind that this mandate expires 36 months after the last billing.
- B2B Scheme (Rule 19-44):
Designed specifically for monetary transactions between legal persons (companies or self-employed), with a uniform system of payments which is established in the 32 acceding States which allows the management of receipts and payments with ease, safety and economy, both within our borders and in the European market. Transfer is not possible, unless guests sign and return the mandate prior to the issuance of direct debits.
The cancellation of the mandate concerns the creditor and the debtor, however, when 36 months have elapsed without debts associated with a command being present, this will be automatically canceled. The creditor cannot make debts related thereto, without obtaining a new mandate.
4. Replace traditional STANDARD files 19, 32 or 58 files SDD: CORE (N 19-14) or B2B (N 19-44).5. The deadline for submitting debit orders with the old format is 31 January 2016. From this date will only be valid with the SEPA mandate.6. Transfer existing direct debits to SEPA mandates.The current direct debit orders which are valid before the migration to SEPA will remain valid to issue direct debits CORE. In Spain, we have defined a set of rules of migration to adapt the data collected in existing debit orders.The B2B debt, is a new product with different characteristics, so it is necessary that the creditor formalize a B2B mandate of all their debtors.What happens if they are not adapted to the SEPA?If a business is not adapted, they cannot make payments or receive charges until they do it. They should not postpone the proceedings to avoid negative impact on the cash flow of their business.