Credit where it’s due

Buyer appetite for payment terms remains high

How important are payment terms when considering suppliers or vendors for B2B purchases?

Would you abandon a purchase if you were not offered suitable payment terms at the point of need?

How long would you be willing to wait for a seller to return a credit decision?

In 2025, payment terms remain non-negotiable for the vast majority of B2B buyers. Regardless of their industry, the details of their order or the sales channel on which they choose to place it, buyers expect the opportunity to access instant lines of credit and flexible trade accounts.

After all, why wouldn’t they? Trade credit has been the standard payment method in B2B for hundreds of years. Meanwhile the high speed and slick experiences of consumer commerce have inflated buyer expectations, creating a demand for payment terms that are available instantly at the point of need.

Can’t beat a classic:
30-day terms reign supreme

In 2025, some B2B buyers expect a diverse set of deferred payment plans including extended terms and instalment schemes. But for many, you can’t beat a classic. Mirroring last year’s data, 36% of B2B buyers say that 30 days is the ideal timeframe for payment terms, while a further 21% want the opportunity to defer payment for 60 days.

What are the ideal payment terms for your business?

It simply would not be possible for a small business like mine to pay for goods before having had a chance to sell them. The flexibility that payment terms give to ease cash flow pressures therefore form a critical role when selecting which suppliers to use. It would be no exaggeration to say that some decisions to purchase goods are ultimately decided on the credit terms offered.

Mark Walter
Owner, The Green House

Demand for trade accounts remains high

If offered, would you open a trade account with your main supplier(s)?

In 2024, the vast majority of buyers (81%) that we spoke to were enticed by the idea of a trade account that would empower them to make several purchases through a specified period and then receive one consolidated invoice to be paid on an agreed date. This year, demand remains consistently high.

Trade accounts are an effective way of simplifying trade credit for both buyers and sellers. Traditionally popular in sectors such as food and beverages, construction and automotive, there is now significant expectation for trade accounts across all industry sectors.

In the eyes of many buyers, the benefits of a trade account are far superior to those of a generic “buy now, pay later” option. The ability to manage invoices in a buyer portal (60%) and to group invoices from multiple sites or companies (41%) are two of the most appealing aspects of trade accounts.

Recent years have seen trade shifting online and fraudsters becoming more sophisticated, all set to a backdrop of social, political and economic turmoil. As a result, merchants have struggled to find a way to offer the instant, flexible payment terms and trade accounts that buyers demand.

There’s a good reason why 49% of buyers get payment terms from less than half of their suppliers:

It’s risky. The anonymity and scale of commerce in 2025 means that it can be difficult to know which buyers can be trusted to stick to their payment terms.
It’s complex. From credit scoring and fraud detection, through to financing, payment processing, insurance and collections, trade credit is made up of several complex components.
It creates cash flow pressure. Offering credit off your own balance sheet can have a significant negative impact on your cash flow.

In recent years, digital trade credit solutions have emerged as a safer, simpler and more sustainable way for merchants to offer payment terms. With providers like Hokodo providing the financing and handling every step of the trade credit management process, buyers get the credit they deserve while sellers get paid upfront and the freedom to focus on their growth goals. Everyone wins.

The survival of my business depends on the availability of payment terms, but as a small, independent store, it can be challenging to access credit at the checkout, both in online and offline purchasing situations.

Joe Berger
Owner, Chinley Cheese

The downfall of card payments in B2B

In 2025, the popularity of cards as a settlement method in B2B is beginning to dwindle. Restricted by low limits, significant fees and higher fraud risk, buyers are beginning to feel the inconvenience and inflexibility of cards when making business purchases. Compared with last year, the popularity of credit and debit cards dropped by 9% and 16% respectively.

Instead, buyers are increasingly turning to settlement methods like bank transfer and Direct Debit, both of which are better suited to the high value orders, complexity and committee-style decision making processes of B2B.