What is Payment by Invoice? Invoice Purchase Method in B2B

What is Payment by invoice?

• Invoice payment method - What is it?

• Payment by invoice definition

• What is the difference between the invoice payment method in B2B and B2C?

• What is the solution for B2B payment by invoice in e-commerce?

• Why should you offer payment by invoice in your B2B online store?

• What is the advantage of payment by invoice in B2B?

• Specifically, how can B2B payment by invoice with Billie help you take your online store to the next level?

• What are the specific benefits of payment by invoice with Billie?

• B2B invoice purchasing for your online store

Invoice Payment Method - What is it?

Before we break it down, it’s important to elaborate on the definition of payment by invoice.

Payment by Invoice Definition

Payment by invoice is the most popular payment method in Germany. Payment by invoice, otherwise known as an invoice purchase, means that the buyer acquires and receives a good or service immediately, but does not pay immediately.

The payment term varies and is usually determined by the invoice purchase provider. This form of payment is most commonly seen by customers when placing a private order with an online store.

B2B payment by invoice is no different either, where goods or services are paid for only after receipt of the goods. 

However, the backend process is more complicated than when dealing with private customer transactions. For this reason, there are still limited practical and common solutions for invoice purchases in B2B transactions. 

What is Different About the Invoice Payment Method in B2B than in B2C?

In B2B, payment by invoice still poses a particular challenge - unlike in B2C (short for "business to consumer," referring to the business relationship between a company and consumer).

Why is Payment by Invoice More Complicated in B2B than for B2C?

Most B2B companies have a smaller customer base than B2C suppliers. Since they receive fewer orders, B2B merchants are heavily reliant on timely payment. B2B payment by invoice usually involves a higher risk for the supplier than B2C, because the payment sums are significantly higher. On average, the value of a B2B invoice is 1,900 euros.

If the customer files for insolvency after completing an invoice purchase, it is unlikely that the invoice will be settled at all. If the business receives the payment, it will likely involve a lot of effort, long waiting times, and high legal fees.

Therefore, it is crucial for B2B suppliers to check the creditworthiness of the company that wishes to buy on invoice in advance. Following a successful check, then only can the purchase be completed and the goods delivered.

What is the Solution for B2B Payment by invoice in e-Commerce?

Especially in e-commerce, customers from the B2C world are used to fast processes. In order to offer a pleasant customer experience in B2B transactions as well, the credit check must not delay the conclusion of the purchase. After all, the advantage of operating an online store is that it is fully automated, always accessible, and leads to the conclusion of the purchase within just a few clicks.

B2B invoice purchasing needs a plug-in for online stores that:

• Can be easily embedded in the online store,

• Performs a reliable risk assessment,

• Works in seconds,

• Is completely automated.

Why Should Payment by Invoice be Offered in B2B Online Stores?

A business generates more sales if payment processes are made as easy as possible for customers. Therefore, customers should be offered the appropriate payment method.

95 percent of B2B customers prefer payment by invoice.

In addition, the purchase completion should be fast and intuitive. After all, every click on the way to completion of a purchase can lead to abandonment. 10 percent of purchase abandonments in online stores are related to long processes in the conclusion of the purchase. 

What is the Advantage of Payment by Invoice in B2B?

The advantages of B2B payment by invoice for companies

Most popular payment method among 95 percent of business customers

• Higher customer satisfaction

• Higher conversion rate

• Higher turnover

How can B2B Invoice Purchasing with Billie Help Take an Online Store to the Next Level?

Billie invoice purchasing - provides easy and secure payment processing directly in B2B online stores.

Billie customers who have integrated payment by invoice as a payment method into their online store have seen an increase in sales of up to 30 percent.

What are the Specific Advantages of Purchasing on Invoice with Billie?

• Full integration into your online store

• Real-time risk assessment

• Immediate payment

• Dunning process in your name

• Completely automated and digital

Payment by Invoice in Your Online Store with Billie in Detail:

Full Integration

Billie's payment by invoice tool can be easily integrated into your online store. Customers can simply select purchase on account during checkout and complete the purchase in just a few clicks. 

Billie offers existing integrations for JTL, Magento, Shopware and Woo Commerce. However, our team is also able to build the right integrations for other store systems and support you during implementation.

Real-time Risk Assessment

Billie performs a credit check on B2B customers within seconds. 

Results are available immediately, and with an acceptance rate of over 90 percent, Billie can offer payment by invoice to the majority of your customers. If we are unable to offer a customer purchase on account they will be asked to choose another payment method.

This is How we Perform the Risk Check:

When a customer selects Invoice as the payment method, a widget opens and our API interface performs the verification immediately and via the company database, the company is verified and can be checked.

Immediate Payout

After successful completion of the purchase, you can prepare and ship the goods. Billie pays you 100% immediately - regardless of your customers' payment terms. There is no one-time transaction fee in the low discount range. You decide which payment term you want to grant your customers.

B2B invoice purchasing with Billie provides you with quick and secure liquidity. This gives you the freedom to plan investments, and for example, make advance payments for new orders - without having to worry about your cash flow.

If the Worst Comes to the Worst: Dunning on your Behalf

If a customer pays late or not at all, despite having passed the risk assessment, Billie takes care of the entire dunning process. 

The dunning process is carried out in your name and design, without you having to take care of anything. The costs associated with dunning and any potential collection procedures are covered by Billie. The business will not incur any further costs.

Completely Automated and Digital

With Billie’s B2B Invoice Buying, you are not only on the safe and liquid side, you also save time and manpower by outsourcing your invoices.

Invoice Payment Method for your B2B Online Store

Do you have your own online store for business customers and would like to implement payment by invoice as a payment method? Or do you have questions about B2B payment methods and payment by invoice? Then get in touch at info@billie.de or let our B2B experts consult you directly: