How SEPA Direct Debit Automation Transformed Our Clients' Cash Flow

The Late Payment Problem

In the telecom industry, a typical operator collects invoices from dozens to hundreds of business customers every month. Even with a well-run billing process, a significant portion of those invoices will be paid late.

The consequences compound:

• Cash flow becomes unpredictable
• Finance teams spend hours chasing payments manually
• Long-overdue invoices become harder to collect

The solution that consistently works best for European telecom operators? SEPA Direct Debit.

What SEPA Direct Debit Changes

With SEPA Direct Debit, you flip the collections model. Instead of waiting for customers to pay you, you automatically debit their bank account on the due date — with their prior consent (the SEPA mandate).

For operators on BlueRockTEL, this means:

• Invoices are collected on the due date, not 30–60 days later
• No manual follow-up for the majority of customers
• Exception-based workflow — your team only handles failed collections, not routine ones

The Automation Flow in BlueRockTEL

Here's what happens automatically when a billing run completes:

1. Invoices are generated for all customers
2. For customers with a SEPA mandate on file, a direct debit instruction is created
3. The instruction is submitted to the bank with the correct pre-notification period (typically 5 business days before the debit date)
4. On the debit date, the bank processes the collection
5. BlueRockTEL receives the collection result and automatically reconciles it against the invoice

Failed collections (due to insufficient funds, closed accounts, etc.) are flagged immediately and trigger the dunning workflow.

Real-World Impact

Operators who have moved to SEPA Direct Debit automation on BlueRockTEL report:

• Average Days Sales Outstanding (DSO) reduced by 20–35 days
• Finance team time on collections reduced by ~60%
• Bad debt rate decreased (because failed collections are caught immediately, before they age)

These are not small improvements. For an operator with €200k in monthly recurring revenue, reducing DSO by 30 days means €200k more in available cash at any point in time.

Getting Started

Implementing SEPA Direct Debit requires collecting mandates from your customers (a one-time process) and connecting to your bank via SEPA Credit Transfer/EBICS or a payment processor like GoCardless or Stripe.

BlueRockTEL handles the mandate management, submission file generation, and reconciliation. If you are currently collecting payments manually or via manual bank transfers, the migration to SEPA automation is one of the highest-ROI operational improvements available to you.