Deferred payments with Buy Now, Pay Later for B2B businesses


Check-out options titled 'Choose payment method' include a deferred payments option called 'Buy now pay later'.

Let’s answer some common questions about deferred payments for businesses in the B2B space. Particularly, we’ll look at questions around deferred payments with Buy Now, Pay Later solutions, such as Terms.Tech. Our aim is to simplify complexity with brief explanations for these frequently asked questions:

  • How is buy now pay later for B2B different from buy now pay later for B2C?
  • How do deferred payments BNPL for B2B enable businesses to manage their cash flow?
  • How does BNPL for B2B reduce risk for businesses?
  • How can BNPL for B2B support marketplaces?

How is Buy Now, Pay Later for B2B different from buy now pay later for B2C?

Consumers have become accustomed to being offered BNPL deferred payments options at checkout. Buy Now, Pay Later (BNPL) for B2B (business-to-business) transactions differs from BNPL for B2C (business-to-consumer) transactions in a few key ways. And now deferred payments are becoming more and more common – and even expected – for B2B transactions.

And let’s face it, the global B2B market is so much bigger than B2C. Statista says the B2B global ecommerce in 2021 was 17.1 trillion USD, which they say is more than five times bigger than B2C ecommerce. And that’s just ecommerce. So, huge opportunities await B2B Buy Now, Pay Later that can address both digital and non-digital players.

The main differences between BNPL for B2B and B2C relate to scale, purpose, and additional features and services that businesses receive from their BNPL partner.


The scale of B2B transactions is generally larger than that of B2C transactions. Deferred payments taking place via B2B BNPL may involve larger amounts of money and longer payment terms, which can be customised to suit the needs of the businesses involved.


B2B BNPL is often used as a financing tool for businesses to manage their cash flow and maintain liquidity. Consumers, however, tend to see BNPL as a convenient way to defer payments. B2B BNPL may also be used to help businesses manage seasonality or fluctuations in demand by providing flexible payment options that match the timing of their revenues.

Beyond deferred payments!

B2B BNPL providers often offer additional features and services tailored to the needs of businesses, such as invoice management, credit checks, and account management tools. Also, a reliable buy now pay later solution will take on the responsibility of collecting late payments – after all, that’s the burden the BNPL provider has taken on. And a game-changing advantage to the seller, who already has been paid by the BNPL provider!

How do deferred payments in BNPL enable businesses to manage their cash flow?

B2B BNPL’s deferred payments can help businesses better manage their cash flow by providing them with flexible payment options, preserving their working capital, and helping them manage seasonality and forecast their expenses. These advantages make BNPL for B2B transactions very attractive.

Flexible Payment Terms

B2B BNPL providers may offer flexible payment terms that allow businesses to spread out their payments over a longer period of time. This enables businesses to manage their cash flow by giving them more time to pay their bills while freeing up cash for other expenses.

Improve Working Capital

By using BNPL, businesses can preserve their working capital. This means the capital can be deployed more wisely, i.e. used for other important expenses such as inventory, payroll, and marketing. Improving working capital helps businesses to avoid cash crunches or financial difficulties.

Manage Seasonality

Many businesses and industries experience seasonal fluctuations in revenue. They have high demand during certain times of the year and lower demand at other times. B2B BNPL can help businesses manage seasonality by providing them with flexible payment options that match the timing of their revenues. The result is avoiding cash flow problems during slow periods.

Predictable Payments

With BNPL, businesses can forecast their cash flow more accurately, as they know exactly when and how much they need to pay. 


Modern BNPL products are digital solutions, which help businesses advance their digitalisation strategies and progress. Paperwork reduction is a great benefit! BNPL provides non-financial businesses with a form of embedded finance making the checkout procedure as easy as possible. And, the ideal B2B BNPL solution includes support for developers, APIs that are easy to integrate, and customer-focused back office platform and user portals.

How do BNPL’s deferred payments reduce risk for B2B businesses?

BNPL for B2B can help reduce risk for businesses by improving credit risk management, providing payment security features, helping businesses manage their cash flow, and improving their budgeting and expense planning capabilities.

Credit Risk Management

B2B BNPL providers often perform credit checks and risk assessments on potential buyers before offering them credit terms. This can help businesses avoid extending credit to customers who are unlikely to pay or who have a high risk of defaulting.

Payment Security

B2B BNPL providers may offer payment security features, such as fraud detection and prevention, to reduce the risk of payment disputes or chargebacks. This can help protect businesses from losses due to fraudulent or disputed transactions.

Improved Cash Flow

Ok! We talked about this above, but it’s always worth talking about cash flow till the cows come home! B2B BNPL can help businesses manage their cash flow by providing them with flexible payment terms and preserving their working capital. This can reduce the risk of cash flow problems, which can be a major risk for businesses.

Better Budgeting

With BNPL, businesses can forecast their payments more accurately, allowing them to budget and plan their expenses more effectively. This can help reduce the risk of overspending or unexpected expenses.

How can BNPL for B2B support marketplaces?

Deferred payments offered by BNPL for B2B can help marketplaces increase sales, improve cash flow, improve conversion rates, and gain a competitive advantage. The result is that the businesses partnered with or using the marketplaces should see increased growth, a more stable customer base, and even finding new customers more easily.

Deferred Payments = Increased Sales

By offering BNPL, marketplaces can make it easier for buyers to purchase products or services, as they can spread the cost of their purchases over time, or to select the most beneficial payment terms possible. The BNPL solution should be able to make almost instantaneous decisions on the acceptable payment terms and options, speeding up what traditionally is a fairly laborious and slow process. This can help increase sales by reducing the upfront cost of purchases, and making them more affordable for buyers.

Better Conversion Rates

BNPL can help improve conversion rates on marketplaces by reducing cart abandonment rates. You’ve got the customer to checkout, and then they change their mind because the payment options are not attractive. Buyers may abandon their carts if they find the upfront cost of their purchases too high. Not so with deferred payments as an option, which can make purchasing faster, smoother, and easier. In turn, this can reduce cart abandonment rates and improve conversion rates.

Competitive Advantage

By offering BNPL, marketplaces can differentiate themselves from competitors and offer an additional value proposition to buyers. This can help attract more buyers and sellers to the marketplace, and increase its overall value.

Which B2B buy now, pay later provider offers the deferred payments your business needs?

Terms.Tech provides easy-to-integrate B2B deferred payment terms at checkout, near-instant decision-making, and takes responsibility for collections. The user experience is what everyone has come to expect from B2C. Are you seeking 1-click checkout? Or, custom solutions for complex B2B platforms? Terms.Tech’s solutions are flexible and easily adapted for whatever businesses need. Terms.Tech helps European businesses improve cash flow, grow sales, and improve customer satisfaction. 

🤝 Why wait to find out more? Get in touch with our Terms.Tech consultants and see what the best BNPL solution is for you.