Net 60 stretched to Net 155 and your Budapest automotive supplier contact says "jövő héten" (next week) in Hungarian—for the tenth time. You've sent twelve follow-ups across language barriers, but the decision-maker who signed the purchase order is now "waiting for approval from German headquarters" and nobody else will commit to a payment date or respond with clarity about timing.
The invoice references a Kft. in Budapest, but they redirect you to the Debrecen manufacturing plant. Debrecen says Szeged warehouse handles supplier payments. Entity confusion across Hungarian cities and automotive supply chain structures—and your invoice sits unpaid in HUF while exchange rates fluctuate against EUR and they continue producing components for Mercedes and Audi with payment priorities flowing to Tier 1 suppliers first.
You have the purchase order and delivery confirmations in English—but Hungarian legal escalation requires Hungarian-language documentation. They've gone silent for 125 days, and you're not sure if this is a technical specification dispute, an automotive supply chain payment cascade delay (they haven't been paid by OEM), HUF currency timing issues, or payment avoidance masked as "bureaucratic approval process."
If This Sounds Familiar, You're in the Right Place
- Net 30-60 terms routinely drift to Net 90-180+ with "next week" or "waiting for approval" responses
- Acceptance disputes appear around automotive component tolerances, IT project deliverables, pharmaceutical quality specs
- Entity confusion: Budapest headquarters vs Debrecen/Szeged/Miskolc manufacturing or logistics sites
- Decision-maker who approved is now "waiting for German/Austrian parent company approval"
- Evidence scattered: English emails, Hungarian contracts (if they exist), technical drawings, delivery confirmations
- Language barriers: Hungarian (Magyar) is a unique language—legal documentation requires Hungarian
- Cross-border EU complications: unsure of Hungarian/Central European collection approaches
- HUF currency volatility: "waiting for HUF/EUR exchange approval" or timing issues
- Automotive supply chain payment cascades: "waiting for OEM payment, then we'll pay you"
- "Finance department is reviewing with accounting" stalls with no timeline
What Changes When Collecty Runs the File
- Evidence pack assembled in first 48 hours (purchase orders, Hungarian contracts, technical specs—Hungarian/English)
- Entity and decision-owner mapping across Hungarian locations (who actually approves payments in Budapest, Debrecen, Szeged, Miskolc)
- Industry-aware, Hungarian-capable outreach (automotive, IT, pharma—understanding supply chain and bureaucratic realities)
- Acceptance reconstruction when "technical specifications" or "quality standards" disputes appear
- Hungary/EU-aware escalation routing (European Payment Order eligibility, Hungarian court thresholds, documentation requirements)
- Documented reporting cadence (you know what's happening, why, and what's next—in English)
- Relationship-smart persistence (Central European automotive ties protected where possible)
Collecty works Hungary B2B files from HUF 400K to HUF 100M+ (€1K-€250K+), across automotive, IT, pharmaceuticals, and logistics—evidence-first, Hungarian-capable, EU-compliant across Budapest, Debrecen, Szeged, Miskolc, and Pécs.
The Hungary Automotive Gateway™
| Factor | Details |
|---|---|
| Statute of Limitations | 5 years for commercial claims |
| Currency | HUF (Hungarian Forint) - NOT EUR |
| EU Membership | EU member since 2004 |
| Language | Hungarian/Magyar (unique, non-Indo-European) |
| Payment Terms | Typically Net 60-90 |
| Entity Types | Kft. (private) vs Zrt. (public) |
Industry Scenarios: When Hungarian Payments Stall
Automotive Manufacturing
The situation: Component supplies to Debrecen Tier 2 supplier, HUF 12M (€30K), 120 days overdue. "Waiting for OEM payment cascade" without timeline.
What we do: Document acceptance and deployment, map automotive supply chain structure, apply structured escalation that respects OEM relationship dynamics.
IT Services/Software Outsourcing
The situation: Development services to Budapest IT company, HUF 8M (€20K), 95 days overdue. "Milestone review" without documented issues.
What we do: Reconstruct project milestones and acceptance, document code deployment, route professional EU-compliant collection.
Pharmaceuticals
The situation: Laboratory equipment to Szeged pharma, HUF 15M (€38K), 85 days overdue. "Quality certification review" creating delay.
What we do: Document installation acceptance, verify certification process status, apply structured Hungarian escalation.
Why Not DIY / Lawyer-First / Write It Off?
| Approach | Typical Outcome | When It Works |
|---|---|---|
| DIY follow-up | Low response; language barriers (Hungarian unique); bureaucratic delays; no EU escalation path | Small amounts, strong relationship, same-city debtor |
| Lawyer-first | High cost (HUF 500K-2M+); relationship damage; court timelines 12-24 months; translation costs | Large amounts (HUF 8M+/€20K+) with litigation budget; relationship broken |
| Write it off | 100% loss; precedent set with Central European customers; no collection attempt | Amount below HUF 300K; debtor insolvency confirmed |
Frequently Asked Questions
What is the statute of limitations for commercial debt in Hungary?
Hungarian commercial claims typically have a 5-year statute of limitations. Requirements vary—consult local Hungarian counsel for specific situations.
Why doesn't Hungary use the EUR?
Hungary is an EU member but has not adopted the EUR. The Hungarian Forint (HUF) creates currency exchange considerations for cross-border transactions. Exchange rate volatility is sometimes used as a payment delay excuse.
Is Hungarian language really necessary for collection?
Hungarian (Magyar) is a unique, non-Indo-European language with no close relatives. Legal documentation requires Hungarian. While some businesses operate in English, Hungarian-language capability significantly improves collection effectiveness and is essential for formal proceedings.
How does the automotive supply chain affect payments?
Hungary is a major automotive manufacturing hub (Mercedes, Audi, Suzuki plants). Tier 2 and Tier 3 suppliers often wait for OEM payment cascades before paying their own suppliers. Understanding these dynamics is crucial for realistic collection timelines.
Can I use the European Payment Order in Hungary?
Yes. Hungary has been an EU member since 2004 and participates in the European Payment Order regulation. This can be efficient for cross-border enforcement when evidence is properly documented.
What's the difference between Kft. and Zrt.?
Kft. (Korlátolt felelősségű társaság) is a private limited company, most common for SMEs. Zrt. (Zártkörűen működő részvénytársaság) is a private company limited by shares for larger enterprises. Understanding entity structure helps identify payment authority.
How long does Hungarian debt collection typically take?
Amicable collection in Hungary can resolve within 45-75 days when evidence is strong. Court proceedings take 12-24 months. The EU Payment Order can provide faster cross-border enforcement for appropriate cases.
What industries are most common for Hungarian B2B collection?
Automotive manufacturing (components for Mercedes, Audi, Suzuki), IT services/software outsourcing, pharmaceuticals, logistics/freight (Central European gateway), and electronics manufacturing. Automotive represents the largest share of cross-border disputes.
Next Steps: Getting Your Hungary Collection Started
Get your Hungary collection roadmap—evidence-first, Hungarian-capable, EU-compliant. Get Your Hungary Roadmap →
Sarah Lindberg
International Operations Lead
Sarah coordinates our global partner network across 160+ countries, ensuring seamless cross-border debt recovery.
