How to Improve B2B Buyer Retention with Pay by Invoice and Net Terms

In today’s competitive B2B landscape, keeping buyers coming back is key to sustainable growth. Many vendors focus heavily on acquisition, but retention can be the real game-changer. One effective way to retain buyers? Offering net terms. When implemented strategically, net terms create convenience, build trust, and foster loyalty. In this blog, we’ll explore how net terms can strengthen buyer relationships and outline actionable strategies to make the most of them.

Why Buyer Retention is Critical for B2B Success

Buyer retention goes beyond repeat sales. Loyal buyers often bring greater lifetime value, spending more over time and becoming brand advocates. With acquisition costs steadily rising, focusing on retention can have a significant financial impact. Studies suggest that a mere 5% increase in retention can lead to profit boosts of 25-95%. For B2B vendors, increasing retention is not just a growth tactic; it's a vital, cost-effective strategy.

The Role of Net Terms in the Buyer Journey

For B2B buyers, net terms can make or break their purchasing decisions. In fact, 83% of B2B buyers will abandon an ecommerce purchase if payment terms are unavailable. Offering net terms allows buyers to balance cash flow, especially when they’re managing multiple purchases or dealing with high costs. With flexible payment options that align with their own financial cycles, buyers experience less friction, more trust, and an increased likelihood of returning for future purchases. When buyers feel that their needs are met financially, it lays the foundation for a lasting relationship.

The Power of Trust in Retention

Trust is the foundation of all successful buyer relationships. According to Forrester, “B2B companies that earn trust with their brand constituents — customers, prospects, employees, partners, and influencers — will experience increased levels of engagement, loyalty, and advocacy. Customers who trust are more likely to renew, entertain a new product or service, and recommend the company to others.”

When you offer net terms, you’re sending a strong message: you trust your buyers to pay according to their schedules. This act of trust often prompts a reciprocal sense of loyalty. Buyers who feel trusted are more likely to stay loyal, place larger orders, and recommend your brand to others. Additionally, offering net terms shows an indirect willingness to invest in the buyer's business, which sets your brand apart from competitors who demand immediate payments or have rigid terms.

5 Strategies for Increasing Buyer Retention with Net Terms

To increase buyer retention, offering net terms should be more than just a payment option. Here are several ways to make net terms a key part of your retention strategy.

#1 Offer Customizable Payment Terms

Not all buyers are the same. Customizing payment terms—such as offering net 30, net 60, or even net 90 days—shows buyers that you understand and respect their unique financial circumstances. Providing this flexibility can make buyers feel valued, improving their experience and increasing the likelihood that they’ll keep coming back. 

#2 Build a Simple and Transparent Credit Approval Process

Nothing frustrates buyers more than a complex, unclear credit approval process. To keep buyers engaged, make the credit approval process straightforward and transparent. Clear guidelines, fast processing, and regular communication help buyers understand what’s required and when they can expect approval. This clarity not only builds trust but also strengthens retention by simplifying their journey with you. B2B buyers prioritize efficiency and are willing to switch vendors for a better experience.

By offering a smooth, well-communicated credit approval experience, you position your business as a reliable partner, which is essential in a competitive market where experience is everything.

#3 Drive Buyer Loyalty Through Convenient Payment Methods

Offering diverse payment methods alongside net terms gives buyers the freedom to pay in a way that suits them best. Whether ACH, wire transfer, or credit cards, providing multiple options demonstrates a buyer-first approach. Convenient payment methods also reduce late payments, keeping buyers in good standing and strengthening their loyalty.

#4 Improve the Payment Experience with Self-Service

A smooth payment experience is essential for keeping buyers happy. Invoicing, payment reminders, and self-service portals allow buyers to manage their accounts at their convenience.

A TrustRadius research found that 100% of buyers want to self-serve all or part of the buying journey. Self-service options give buyers control, helping them to handle payments and credit management independently, reducing the need for back-and-forth. This level of convenience not only reduces friction but also encourages repeat business.

#5 Enable Dynamic Credit Extensions for Loyal Buyers

Rewarding loyalty can strengthen your relationship with buyers. For those with a solid payment history, consider extending their credit limit or offering longer terms. This not only shows appreciation for their loyalty but also gives them more cash flow flexibility. By accommodating loyal buyers in this way, you make it easier for them to plan larger purchases and rely on your business as their preferred vendor.

Building the Right Foundation to Enable Net Terms as a Retention Strategy

Creating a buyer retention strategy around net terms requires a solid technological foundation and strategic infrastructure. Here’s how B2B vendors can build the necessary components to ensure net terms are both scalable and buyer-friendly.

• AI-powered credit risk assessment. Use AI-driven risk management tools to quickly and accurately evaluate buyer creditworthiness, enabling more buyers to qualify for net terms with reduced risk.
• AR Automation for scalable operations. Automation of AR functions—such as invoicing and payment reconciliation—supports efficient credit management, allowing you to extend net terms at scale.
• Third-party partnerships. Partnering with providers allows you to offer net terms without bearing credit risk, as they finance transactions and manage risk for approved buyers.
• White-label buyer experience. Provide a branded, white-label experience for buyers managing their accounts, payments, and credit terms. This maintains brand consistency and builds buyer trust, strengthening loyalty through a seamless interface.
• Personalization and predictive analytics for retention insights. Establish personalization capabilities throughout the purchasing process, from flexible terms to individualized communications. Moreover, analytics tools track buyer behavior, enabling proactive retention strategies like offering adjusted terms to high-value buyers based on payment patterns.
• Unified system integration. Seamless integration across eCommerce and ERP platforms ensures a smooth buyer experience and centralized data, helping manage net terms efficiently.

Automated Net Terms to Scale Buyer Retention

These strategies and components for making net terms an effective strategy for retention can be seamlessly implemented with Balance. Balance enables vendors to offer flexible terms, improve credit approvals, and provide convenient payment options—all with automated workflows from onboarding to payment completion.

Combining net terms financing, AI-powered credit risk management, AR automation, and 0 DSO guarantee, Balance allows you to deliver a scalable, buyer-first experience with less complexity and none of the credit risk. This comprehensive solution simplifies payments, boosts buyer satisfaction, and creates a frictionless purchasing journey that drives repeat business.

Net Terms Drive Lasting Buyer Relationships

Net terms are more than just a payment option; they’re a strategic asset for building long-lasting buyer relationships. By using net terms to build trust, offer flexibility, and create a seamless payment experience, B2B vendors can increase buyer retention significantly. With AI and automation, you can further optimize your net terms strategy, ensuring convenience for buyers and loyalty to your brand. Investing in net terms as part of your retention strategy can lead to a lasting impact on both buyer satisfaction and business growth.

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