Benefits of Offering Net Terms

Benefits of Offering Net Terms

Today's global B2B Marketplace has changed. As younger generations start to take on executive roles, many come with modern expectations for how businesses should operate and, more importantly, how they should manage their payments. The days of legacy payment methods and manual AR/AP are numbered; the new payment experience today's international B2B buyers & sellers demand is fast, familiar, and, most importantly, digital. 

As B2B payments become more modern and sophisticated, it's critical to offer your cross-border buyers & sellers convenient and flexible payment methods, like net terms. This method has been a staple for businesses for years as a way to help manage cash flow, and now buyers seek this functionality via online invoicing and payments.

In its most basic sense, net terms are essentially deferred payment terms offered to a buyer looking to pay an invoice after a set duration of time, like 30, 60 or 90 days. In today's world, protecting and extending your cash flow is extremely attractive for B2B businesses, so offering net terms is more in vogue than ever before. However, traditionally, net terms that B2B companies use are manual and outdated, hard to monitor, and breakdown completely with cross-border transactions. 

With our Merchant of Record model, you can remove traditional net term pain points and offer a cross-border payments experience that meets today's modern expectations, plus the benefits of easy onboarding and instant decision making. Lets explore how our platform's net terms optimizations can benefit you.

Eliminate Manual Processes with Automated Reporting and Reconciliation

It’s no secret that manual processes are slow, but it might surprise you how much they plague traditional net terms. This is due to the arduous task of reporting and reconciling invoices & payments from all your international buyers and sellers. These manual processes increase your operational costs and overhead due to staffing requirements and lag your overall payments process. With our digital platform, you eliminate these manual tasks entirely by taking advantage of our fully automated end-to-end reporting and reconciliation for your AR/AP.  

Leverage an All-In-One Platform and Remove Fragmentation From the Equation

Global businesses have historically struggled to offer net terms because of cash flow demands, and the administrative burdens needed to gain approval from cross-border lenders. As these hurdles need to be addressed in each region you plan to sell into, these pain points multiply, and the process becomes slow and fragmented. We eliminate this fragmentation by engaging our global network to manage regional requirements, and compliance all through our vast Merchant of Record network. You can also integrate with our platform at a fraction of the time it would take to onboard historically, with our low-code Drop-In integration. As a result, you can remove all the hassle from the traditional net terms process and leave it all to us. 

Get Paid Faster with Real-Time Payments

Today's hot topic in B2B payments is "real-time payments," and for a good reason; cash flows are tight. With traditional net terms, you typically get paid in +60 days, +90 days. However, in about 43% of cases, these payments on invoices are delayed. This leads to increased DSO and payment chasing during a time when your cash flow may need some stimulus. With our net terms offering, you get paid in real-time while we take on 100% of the liability of the transaction whether your buyer pays or not. After your buyer completes a one-click credit check and the completion of the sale, we pay you the invoiced amount instantly, while your buyers pay us within +30 or +60 days. 

Multi Currency Management for Your Global Markets

Traditionally, FX management for global net terms payments has been a disjointed process. From managing external lender requirements to navigating FX fluctuations and unfavorable exchange rates it has left a lot to be desired. With our Merchant of Record model you gain our next-level multi currency management and unlock the ability to instantly invoice in 135+ currencies worldwide at highly competitive wholesale FX rates. You also get to leverage our guaranteed FX API to allow buyers to pay in their local currency and offset all currency risk and exposure.  

Monetize Your Marketplaces Payments

In the past, if you offered net terms on your marketplace you had to process transactions off site through a segmented provider. Doing so creates friction for your buyers as they have to navigate off your platform to pay. To make matters worse, this process then removes you from the transaction flow which creates missed revenue opportunities. With our Merchant of Record model you can own your payments by keeping them on your platform. You gain this advantage by leveraging our embedded checkout flow on your marketplace which in turn helps you to own your pricing and revenue. Additionally, by offering net terms you can increase sales and average order size.

Modern payments require modern solutions, and with our out-of-the-box solution for net terms, you gain just that. If you're ready to modernize your B2B payments, our net terms offering is your ticket to providing your cross-border customers the payments experience they demand. Integrate today and stop chasing your cross-border revenue with our powerful Merchant of Record model.

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