Trade accounts have long been the default. But despite the appearance of flexibility, they still force buyers to cover the full invoice in one payment — quietly limiting how much customers are willing to order.
Trade accounts have long been the default way suppliers offer payment flexibility. Net 30 or 60-day terms are familiar, widely accepted, and easy to understand.
But despite the appearance of flexibility, trade accounts still force buyers to make one critical decision: can they cover the full invoice in a single payment?
That requirement quietly limits how much customers are willing, or able, to order.
Under a traditional trade account, buyers may have time before payment is due, but the full invoice still needs to be paid in one go.
For many businesses, that creates a cashflow bottleneck. To stay safe, buyers often order less than they actually need.
This is especially common in industries like packaging, where larger production runs usually mean a lower cost per unit. Even when buying more would be economically smarter, customers scale back to protect short-term cashflow.
When that same order can be split into instalments, the decision shifts.
Instead of asking, "Can I afford this entire invoice in 30 days?" buyers ask, "Can I afford this each month?"
That small change has a big impact. Instalments remove the pressure of a single large payment and give buyers the confidence to order what they actually need.
Production volumes increase, orders become more efficient, and suppliers can run larger jobs without taking on additional risk.
| Category | Trade Accounts (Net 30/60) | Instalments (3-6-9 months) |
|---|---|---|
| Buyer question | "Can I afford this entire invoice in 30 days?" | "Can I afford this each month?" |
| Payment structure | One lump sum payment | Spread over 3-6-9+ months |
| Order size | Reduced to protect cashflow | Increased to actual need |
| Production efficiency | Split runs, frequent reorders | Larger runs, better planning |
| Supplier payment | Delayed 30-60 days | Upfront & in full |
| Credit risk | Supplier carries risk | Transferred to provider |
| Cost per unit | Higher (smaller runs) | Lower (larger runs) |
With B2B Buy Now, Pay Later through PaidTerms, suppliers are paid upfront for approved invoices, while buyers spread the cost over 3, 6, or 9+ months.
This structure benefits both sides:
Importantly, suppliers don't need to act like a bank or extend more trade credit. Payment flexibility is provided without exposing the business to late payments or bad debt.
When customers order based on what they can afford in 30 or 60 days, growth is constrained.
When they can order based on what they actually need, both sides win.
Trade accounts still require buyers to cover the full invoice at once, which limits order size even when larger runs would reduce unit costs.
Instalments allow buyers to order what they actually need, leading to bigger production runs and fewer split orders.
With PaidTerms, suppliers get paid upfront while buyers spread payments over 3–6–9+ months, removing cashflow pressure from both sides.
PaidTerms helps packaging manufacturers increase order sizes, improve production efficiency, and support customer growth — all while getting paid upfront and in full.