B2B / B2C / B2G

Some businesses mainly do business with other businesses, i.e. business-to-business, abbreviated as B2B, while others focus solely on private customers, i.e. business-to-consumer or B2C. Still other businesses specialise in doing business with the government, i.e. business-to-government or B2G. What do these terms mean in practice?

What does B2B mean?

B2B, also BtoB, covers trade between two businesses, which is what your business does, for example, when it offers professional security services for company premises. Those who sell B2B products use a different price structure and level than B2C businesses do. A business that sells to both target groups will usually apply lower rates in the B2B market (note that this is not a rule; business software is often more expensive than comparable BtoB licences). Payment terms for B2B transactions usually differ from those for consumers, including longer payment terms and credit arrangements.

For B2B transactions, onFact offers several possible VAT regimes, such as invoicing under reverse charge (medecontractant). The software then automatically states the necessary legal wording on the invoice (‘VAT reverse charged’).

What does B2C mean?

B2C or BtoC refers to transactions with private customers, i.e. consumers. For example, you sell handmade jewellery via a webshop to private buyers. In onFact, you can have that end customer pay immediately as soon as he or she has completed the order. This can be done online, for example via a Mollie payment link or with a QR code on the invoice (Payconiq).

What does B2G mean?

B2G or BtoG refers to trade with governments, from local to regional and national. For example, if you work as a consultant on government projects, you invoice B2G. Governments increasingly ask for invoicing via e-invoicing and sending invoices via PEPPOL. onFact lets you do this easily via the “Send via PEPPOL” function.