Incredible industry use cases: discover B2B digital payment terms and BNPL for almost any sector
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Industries across the board face unique challenges but also have many emerging opportunities. Each sector plays a vital role in global trade and economic growth. However, businesses encounter hurdles – that’s a fact!
Cash flow management. Fluctuating demands. Lengthy payment cycles. The need for flexible payment options.
In this article, we’ll overview selected industry use cases for Terms.Tech’s innovative B2B payment terms solutions. Terms.Tech offers a truly European B2B Buy Now, Pay Later (BNPL) solution. Merchants and marketplaces get paid, while buyers get the payment terms they need to be successful.
Payment terms for automotive industry
The European automotive industry is buzzing with activity. In 2023, new car sales zoomed up by nearly 14%, reaching 10.5 million vehicles. Electric cars are also gaining traction, with sales jumping 37% and capturing a 14.6% market share. Production is on the rise too, with 12.1 million cars manufactured—a boost of over 11% from the previous year.
The auto parts sector is equally impressive. Valued at over €226 billion in 2023, it’s a massive market. The aftermarket, which includes spare parts and accessories, is even larger, exceeding €400 billion. This industry employs more than 18 million people across Europe and exports to over 160 countries.
To keep up with this growth, businesses need smart financial solutions. That’s where B2B Buy Now, Pay Later (BNPL) services that offer payment terms come in. They allow companies to purchase necessary parts and pay over time, improving cash flow and supporting expansion. Providers like Terms.Tech offer these flexible payment options, helping businesses rev up their operations without hitting the brakes.
Find out more in our article and sources for figures above, ‘B2B BNPL for automotive industry – rev up your sales engine and cash flow!’
Payment terms for retail industry
The European retail industry is vast and varied. It includes everything from small family shops to big multinational chains. According to the European Commission, retail is the largest industrial ecosystem, making up 11.5% of the EU’s value added. It employs nearly 30 million people, making it the largest private employer in the EU. There are about 5.5 million retail companies in the EU, and 99% of them are small and medium-sized enterprises (SMEs).
In 2023, the European retail market was valued at €4.28 trillion. It’s expected to grow at a rate of over 3% from 2023 to 2028. The main sectors are clothing and footwear, electronics, food and groceries, health and beauty, and home goods.
Online shopping is booming. Between 2021 and 2025, online sales in Europe are projected to grow by 14% each year. Countries like Spain and Italy might see even higher growth rates, with Spain at 19% and Italy at 17%.
Despite this growth, retailers face challenges. Managing cash flow and financial stability is tough due to rising costs and economic uncertainties. Traditional payment methods like bank transfers and credit terms can be slow and rigid.
To tackle these issues, many businesses that supply retailers are turning to B2B Buy Now, Pay Later (BNPL) solutions. These digital options offer more flexibility and help improve cash flow, allowing businesses to defer payments without hassle. And, many retailers are already delivering a BNPL service to their customers (B2C), so seeing the value in using one from wholesalers could be intuitively understood.
In short, the European retail industry is growing and adapting. With the rise of e-commerce and innovative financial solutions like B2B BNPL, businesses are better equipped to meet modern challenges and seize new opportunities.
Find out more in our article and sources for figures above, ‘B2B BNPL for the retail industry in Europe – shopping therapy to find success!’
Payment terms for food production
Digest this: the European food production industry is massive, encompassing agriculture, livestock, fisheries, and food and beverage sectors. In 2023, the food and beverage processing sector alone included around 291,000 businesses, representing 14.1% of the EU’s manufacturing companies.
This sector employed approximately 4.6 million people, accounting for 15.5% of EU employment, and added €227 billion in value, which is 12.1% of the EU’s added value. With demand rising, businesses need smart financial solutions to keep up.
Farmers and food producers face challenges like price drops, supply chain disruptions, and shifting to organic farming. Costs are unpredictable, and traditional financing options can be slow and rigid. This makes cash flow management a major struggle.
That’s where payment terms with BNPL come in. This allows businesses to buy essential supplies—like seeds, fertilizers, or packaging—and pay later. It keeps operations running smoothly without draining cash reserves. It can also help businesses plan around seasonality.
Find out more in our article and sources for figures above, ‘Hungry for cash flow? B2B BNPL for Europe’s food production industry’
Payment terms for medical devices
The European medical devices industry is on the rise. It’s expected to grow at a compound annual growth rate (CAGR) of 4.91% from 2024 to 2029, reaching $183.04 billion by 2029. This sector includes tools and machines that help prevent, diagnose, and treat diseases.
Despite this growth, companies face challenges. Strict EU regulations make it hard to launch new products. High compliance costs can slow down innovation, especially for small businesses. Additionally, competition from tech giants like Apple and Google adds pressure.
Financial hurdles are also present. Funding for new devices has declined, making it tough for startups to get support. Rising interest rates affect company valuations, adding to the financial strain.
To tackle these issues, B2B Buy Now, Pay Later (BNPL) solutions can help. They offer flexible payment options, improving cash flow and making expensive devices more accessible. This approach can boost sales and support growth in the medical devices industry
Find out more in our article and sources for figures above, ‘Boost business health with B2B BNPL for the medical devices industry’
Payment terms for paper and forest industry
The European paper and forest products industries are facing tough times. High energy costs and economic challenges have slowed down production. In 2023, paper and board production dropped by 12.8%, and the use of recycled paper fell by 6.9%.
This slowdown has led to overcapacity, where supply exceeds demand. This imbalance causes inefficiencies and financial stress for companies. To cope, businesses are looking for ways to cut costs and find new revenue streams.
Besides mitigating with product, an effective strategy is to offer payment terms that a BNPL solution provides. By embracing BNPL, companies can ease financial pressures and stay competitive. This approach provides immediate relief and supports long-term growth in a challenging market.
Find out more in our article and sources for figures above, ‘B2B BNPL for paper and forest products industries – let’s cut through the logjam!’
Payment terms for packaging and container industry
The European packaging and container industry is evolving rapidly, driven by sustainability and innovation. Companies are creating eco-friendly solutions, like seaweed-coated cartons and barley straw packaging, to reduce environmental impact. There’s also a move towards paper-based and minimalistic designs, aligning with circular economy goals.
Smart packaging is on the rise, integrating technologies such as IoT sensors and QR codes. These advancements improve supply chain visibility and customer engagement, especially in sectors like pharmaceuticals and food logistics.
The boom in e-commerce has increased the need for durable, cost-effective, and sometimes creative packaging. Innovations like returnable and reusable packaging are emerging to meet this demand, supporting circular economy practices.
To navigate these changes, packaging and container businesses can adopt B2B BNPL solutions to provide payment terms to their customers. These flexible payment options enhance cash flow, allowing companies to invest in sustainable and smart packaging innovations without immediate financial strain.
Find out more in our article and sources for figures above, ‘B2B BNPL for packaging and container industry success in Europe’
Payment terms for furniture industry
The European furniture industry is growing steadily, with online sales expected to rise from just over 25% in 2023 to about 40% by 2028. The overall market is projected to grow at an annual rate of 2.26% from 2024 to 2029.
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Despite this growth, the industry faces challenges like fluctuating raw material costs and rising production expenses, which can squeeze profit margins.
By providing payment terms via BNPL, furniture makers, merchants, and marketplaces can all navigate financial challenges more effectively, ensuring stability and fostering growth in a competitive market.
Find out more in our article and sources for figures above, ‘B2B BNPL for the furniture industry – payment terms to enhance cash flow & growth’
Payment terms for agricultural machinery
The European agricultural machinery industry is facing challenges. After steady growth from 2021 to 2023, a decline of up to 10% is expected in 2024. Recent reports highlight a deteriorating business climate, with many companies viewing their current situation as unfavorable.
Employment forecasts are also concerning. Many companies plan to reduce their workforce, reflecting the industry’s struggles. Additionally, dealer inventories remain high, indicating a slowdown in moving machinery to end customers.
Tractor registrations present a mixed picture. France and Germany saw stable or slight increases in 2023, while Italy experienced a significant decline. Other countries like Spain and Poland also reported decreases, whereas the UK and the Netherlands had modest growth.
Find out more in our article and sources for figures above, ‘Payment terms via B2B BNPL for agricultural machinery industry’
Payment terms for agriculture
The global agriculture industry, valued at over 11.24 trillion euros in 2022, faces challenges in cash flow management. Why? The threats of seasonality, investment in equipment, and market fluctuations just to name a few. Terms.Tech offers a digital trade solution to help out aggies overcome these challenges. It allows farmers and suppliers to optimise transactions with deferred payment options. Payment terms could help assist agriculture companies through less predictable periods.
Agriculture merchants and marketplaces can provide financial stability to clients by offering extended payment terms. This solution provides clients with greater purchasing power. It also enables higher buy-in limits for significant investments. Furthermore, it enables them to invest in quality inputs and equipment without up-front payments.
Payment terms for construction and trade supplies
The value of the construction industry was 7.53 trillion euros in 2022. Expectations point to 9.46 trillion euros by 2025 and 13.23 trillion euros by 2030. Construction firms face challenges such as lengthy payment cycles and the risk of late or non-payments. For this use case, Terms.Tech provides up-front access to materials and equipment via flexible payment options.
A payment terms solution helps businesses in the construction industry to maintain healthy cash flow. This allows them to invest in new projects and foster long-term relationships. Construction is traditionally one of the slowest industries to pay suppliers, so being paid up-front is a real game-changer.
Payment terms for electronics
The electronics industry is valued at over 3.17 trillion euros in 2022 and project to grow to 4.57 trillion euros in 2027. Without this amazing industry, you certainly wouldn’t be able to read this article on your tablet, phone or desktop!
It’s highly competitive due to technological advancements and quick-changing demand. Terms.Tech offers payment terms as a strategic solution for both wholesalers and resellers. Thus, gadgets and components get to the right place more rapidly.
Deferred payment terms help electronics industry players in several ways by:
- attracting customers
- increasing sales volumes
- managing inventory effectively
- integrating payment solutions across various sales channels.
Payment terms for events and hospitality
Who doesn’t like to have fun? The value of the events and hospitality industry was over 4 trillion euros in 2022. It’s heading toward 5.34 trillion euros by 2027. Yet, businesses in events and hospitality face financial challenges, and not just because they are recovering from the brutal beating they took during the COVID-19 pandemic. Some typical headwinds include high up-front costs, fluctuating demand, and evolving customer preferences.
Terms.Tech offers a tailored payment terms solution for this industry, providing flexible payment options for up to 90 days. This solution helps businesses secure event bookings, accommodations, and catering services while allowing customers to spread out their payments.
By achieving greater financial stability, businesses in the events and hospitality industry can thrive. They’ll continue to deliver exceptional experiences to guests worldwide.
Payment terms for food and beverage
The food and beverage industry‘s value of 5.34 trillion euros in 2022 should increase to 8.47 trillion euros by 2027. The industry saw a significant shift to online purchasing in 2020. Although the COVID-19 pandemic likely accelerated that shift, it is here to stay. Unfortunately, deferred payment options in the B2B food & beverage market are not yet standard. Banks have been slow to respond to the demand for online trade credit.
Terms.Tech offers a win-win solution! Buyers can defer payment through digital trade credit via payment terms while sellers receive up-front cash.
Payment terms for freelance and contracting
The global freelance and independent contracting market is projected to reach 415 billion euros by the end of 2023. Then, double that by 2028. In 2021 there were 26.9 million self-employed workers in the EU. The attraction of freelancing is driven by the desire for flexibility, control over work choices, and work-life balance.
The digital management of freelance and contract work is increasing. Online platforms connecting freelancers with hiring companies are really taking off. Smart payment solutions play a crucial role in enabling these connections, i.e. facilitating the engagement of freelancers for missions or projects.
Payment terms for shipping and logistics
The shipping and logistics industry was valued at more than 8.4 trillion euros in 2021. It’s projected to reach approximately 13.7 trillion euros by 2027. The growth of B2B e-commerce and cross-border trade has led shippers to seek flexible and innovative payment options. Why? They want to smooth international supply chains and find access to trade finance with lower costs.
By extending payment terms to shipping and logistics platforms, businesses can gain a competitive advantage. They can increase revenues and expand their customer base.
Industry use cases show common benefits of using deferred payment terms solutions via B2B BNPL
All these industry use cases for a delayed payment terms solution highlight some similar advantages. Implementing Terms.Tech’s B2B BNPL deferred payment terms leads to these benefits for merchants, marketplaces, and/or buyers:
- access to convenient and secure payment terms
- real-time eligibility assessment
- risk mitigation by transferring the burden of non-payment and/or fraud to Terms.Tech
- lowering DSO
- increasing sales
- improving cash flow
- higher conversion rates
- improving customer satisfaction levels
- enhanced customer loyalty and longer customer lifetime value
- automated payment processing
- available for both online marketplaces and e-commerce platforms as well as offline sales channels.
Set up your B2B payment terms solution for your industry use case
Jump start your B2B marketplace or e-commerce shop with BNPL payment terms.
For B2B buyers, these solutions provide the opportunity to defer payments with convenient and secure terms, along with rapid eligibility assessments.
For marketplaces and merchants, advantages include mitigating risk, as BNPL providers assume the burden of non-payment or fraud, reducing days sales outstanding (DSO) and improving cash flow, increasing sales, enhancing conversion rates and customer satisfaction, and solidifying customer lifetime value.
🤝 Terms.Tech is ready to find the best deferred payments solution for your business. Industry use cases vary but all of these roads lead to the same solution.
Get in touch with our payment terms experts to see how Terms.Tech can help your business and your customers succeed.
Your B2B context doesn’t match one of the use cases above? Don’t worry – these are just some examples and Terms.Tech remains a strong and viable solution for your company.
