For decades, trade accounts have been the default. But as order sizes grow and cashflow pressure increases, their limitations become harder to ignore.
With a trade account, a supplier extends credit directly to their customer. The customer receives the goods now and pays the full invoice at a later date, usually in one lump sum.
This approach works best when:
However, this also means the supplier effectively becomes a bank. You carry the credit risk, manage approvals, chase payments, and absorb the impact of late or non-payment.
While trade accounts are common, they come with real operational and financial drawbacks:
Approval processes are manual and time-consuming. Credit checks, references, and internal reviews slow down the sales process, often at the exact moment a buyer is ready to order.
Late payments are common. Even good customers miss due dates, creating unpredictable cashflow and extra admin chasing invoices.
Risk sits entirely with the supplier. If a customer fails, the loss is yours. This forces conservative credit limits and restricts growth.
Trade accounts limit acceptance. Many potential customers simply can't access terms, even if they want to buy more.
These constraints often lead to smaller orders, split purchases, and longer sales cycles.
B2B Buy Now, Pay Later rethinks payment terms entirely.
Instead of the supplier extending credit, a third party provides the terms. Customers still get 30–90 days to pay, or the ability to split an invoice into instalments, but the supplier gets paid upfront and in full.
There's no need for you to assess credit risk, approve limits, or act like a lender.
| Category | Traditional Trade Accounts | B2B Buy Now, Pay Later |
|---|---|---|
| Who extends credit | The supplier (you) | Third-party provider |
| When you get paid | 30-90 days later | Upfront & in full |
| Credit risk | Supplier carries all risk | Risk transferred to provider |
| Approval process | Manual, slow, internal resources required | Instant, automated |
| Customer acceptance | Limited to approved customers only | Available to more buyers |
| Collections & admin | Your responsibility | Handled externally |
| Impact on cashflow | Delayed, unpredictable | Immediate, predictable |
| Sales impact | Limited by credit limits, slow approvals | Faster close, larger orders |
With B2B BNPL:
This means fewer blocked deals at the quote stage and less hesitation around larger orders. Buyers can say yes based on what they need, not just what they can afford to pay in one go.
PaidTerms allows suppliers to offer modern payment terms without the downsides of traditional trade accounts. We handle customer repayments, manage risk, and ensure you're paid upfront for approved invoices.
You're no longer exposed to late payments, defaults, or lengthy approval processes. Instead of acting like a bank, you can focus on what you do best: selling, producing, and delivering.
PaidTerms removes the friction, reduces the risk, and enables growth. For many suppliers, the question is no longer if they should modernise their payment terms — but how quickly.