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What is paying with invoice?
  • What is paying with an invoice?
  • Why should you offer the invoice payment method?
  • Advantages of paying with invoice
  • Paying with invoice – the challenges in B2B
  • The best solution for B2B invoice payment
  • Offer invoice payments online and offline with Mondu 

What is paying with an invoice?

Invoice payment is the preferred payment method in the B2B sector, allowing companies to purchase products or services and defer payment to a later date. 

Payment terms play a central role here, defining the framework within which payment must be made. Typically, these terms include deadlines within which payment must be made after receipt of the goods or services – often 30, 45, 60, or even 90 days.

Why should you offer the invoice payment method?

Invoice payments offer a flexible and low-risk way of doing business online and offline. 95% of all B2B buyers prefer to purchase on account when shopping online for their business. However, only 45% of all web shops offer this payment option, representing a significant opportunity for merchants. 

Advantages of paying with an invoice

Paying by invoice offers numerous advantages that merchants should not withhold from their B2B customers:

  • Improved cash flow: customers appreciate the flexibility that buying on account brings, as they can use products and services immediately and pay later, improving their cash flow.
  • Strengthen customer relationships: By offering payment on account, vendors build trust and foster long-term business relationships.
  • Increased conversion rates: The ability to buy on account can positively influence the decision to purchase, increasing conversion rates.
  • Competitive advantage: Given the high demand and low supply of invoice payment options, merchants can clearly differentiate themselves from the competition.

Paying with an invoice – the challenges in B2B

Although paying with invoice offers advantages in both the B2B and B2C areas, B2B merchants face specific challenges:

  • Complex credit checks: Checking the creditworthiness of businesses is often more complex than for private customers.
  • Higher invoice amounts: B2B transactions typically have higher shopping basket values, which increases risk.
  • Adaptation to business customer needs: Payment terms must be flexible to meet the varying needs of business customers.

The best way to offer B2B invoice payment

Offering pay by invoice to your customers can be a double-edged sword. While it unlocks benefits, it also poses challenges in terms of risk and workload. Luckily, there’s a simple solution for B2B merchants: partnering with a specialist B2B payment provider.

Real-time credit checks

Real-time credit checks are your secret weapon against abandoned shopping baskets. Did you know that 10% of online shoppers will abandon a checkout process they perceive as too long? Real-time credit checks enable your business to approve transactions instantly and securely, leading to a smoother customer journey and increased conversion rates. 

High approval rates

The accessibility of your invoice payments to existing and new customers has a major impact on your approval rates. Specialised payment providers leverage advanced verification methods to ensure broad customer acceptance of invoice payments. This enhances customer satisfaction and empowers you to reach new customers and unlock growth.

Handle large orders with ease

B2B transactions often involve high basket values. Specialised providers offer tailored solutions for handling these larger-volume purchases. At the same time, flexible payment terms allow you to build trust and customer satisfaction on high-value orders, which is essential for building long-term business relationships and increasing sales.

Offer invoice payments with Mondu

Mondu offers a buy now pay later solution specifically for the B2B sector, which enables vendors to offer their customers purchase on account both online and offline. With Mondu’s solution, merchants benefit from:

  • No risk: Mondu takes on the risk of non-payment
  • Low workload: Mondu performs automated credit checks and handles the debt collection process
  • Higher conversion rates: Real-time credit checks minimise the abandonment rate 
  • High approval rates: Even with high order values, >90% of all purchase requests are approved, which increases revenue.

By implementing Mondu’s buy now, pay later payment solution, merchants can expect a significant increase in average basket size and an improvement in purchase completion rates. These benefits, combined with the security and simplicity that Mondu offers, make buying on account an attractive option for B2B vendors and their customers.

To learn more about Mondu’s innovative payment solution and how it can benefit your business, we invite you to try Mondu free for three weeks

Content & SEO Manager

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