Use cases: discover potential for B2B digital payment terms and BNPL across industries


Industry use cases for delayed B2B payment terms

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 describe selected industry use cases for Terms.Tech’s innovative B2B payment terms solutions.

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. 

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.

Setting up a B2B payment terms solution ready for all use cases

🤝 Terms.Tech is ready to find the best solution for your business. Use cases vary but all of these roads lead to the same solution.

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

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. Find out more!