30 Custom Payment Terms Statistics That Prove Flexible Payments Drive Growth

Data-backed analysis revealing how custom payment terms accelerate B2B growth, reduce cart abandonment, and unlock working capital for ecommerce businesses

The way businesses handle payment terms directly impacts revenue, customer acquisition, and long-term sustainability. Yet most ecommerce platforms force merchants into rigid payment structures that fail to meet buyer expectations. Research shows that net terms increase buyer acquisition by 38%, while businesses still relying on manual payment processes lose millions in operational inefficiencies. Platforms with built-in flexible payment options give merchants the competitive edge needed to capture this opportunity—offering everything from multi-part installments to B2B net terms without third-party app dependencies.

Key Takeaways

• Custom payment terms directly drive revenue growth - 40% of buyers increase monthly spend after gaining access to trade credit, with 15% doubling their purchasing
• The B2B payments market is massive and growing - Global B2B payments will reach $282.48 trillion by 2034, creating enormous opportunity for merchants with flexible payment capabilities
• Late payments threaten business survival - 82% of business failures stem from poor cash flow management, often tied to inflexible payment terms
• Fraud risks remain high with legacy systems - 79% of organizations were victims of payment fraud attempts in 2024, primarily through manual check processing
• Automation is the path forward - 98% of businesses recognize automation will streamline their payment departments

The Growth of Flexible Payment Options: Market Size and Opportunity

1. Global B2B payments market projected to reach $282.48 trillion by 2034

The B2B payments landscape represents one of the largest financial markets globally. According to Fortune Business Insights, the market will grow from $106.99 trillion in 2025 to $282.48 trillion by 2034—a compound annual growth rate of 12.6%. This expansion creates significant opportunities for merchants who can offer the payment flexibility buyers increasingly demand.

2. B2B payment volume will jump 40% to $124 trillion by 2028

Juniper Research forecasts B2B payment volume will increase 40% to $124 trillion by 2028, up from $89 trillion in 2024. This growth is driven by instant payment rails and improved cross-border capabilities—features that modern ecommerce platforms must support natively.

3. Cross-border B2B payments set to top $150 trillion by 2027

International commerce continues expanding, with Statista projecting cross-border B2B payments exceeding $150 trillion by 2027. Merchants selling globally need platforms with robust multi-currency support and localized payment options to capture this opportunity.

How Custom Payment Terms Impact Buyer Acquisition and Spend

4. Net terms increase new buyer acquisition by 38%

Offering flexible payment terms isn't just a convenience—it's a growth driver. Balance research confirms that net terms increase buyer acquisition by 38% across industries. For B2B merchants, this means platforms supporting B2B net terms through integrations like Resolve provide a measurable competitive advantage.

5. 40% of business buyers increase monthly spend after gaining trade credit access

The revenue impact extends beyond initial acquisition. 40% of buyers increase their monthly spend after receiving access to trade credit. This behavior demonstrates that payment flexibility directly correlates with customer lifetime value improvements.

6. An additional 10% of buyers increase spend by 50-100% after receiving net terms

Among buyers who increase spending after gaining credit access, 10% boost purchases by 50-100%. These high-value customers represent disproportionate revenue potential, making flexible payment capabilities essential for growth-focused merchants.

7. 15% of buyers double their monthly purchasing with payment terms access

The most dramatic spending increases come from a subset of buyers who double their monthly purchasing after gaining access to flexible payment terms. Capturing these customers requires platforms that support varied payment configurations without requiring extensive custom development.

8. 84% of buyers spend more after a credit limit increase, with 56% average spend growth

When merchants increase credit limits for existing customers, 84% respond by spending more. Average monthly spend rises 56% within three months of the limit increase. This data underscores the importance of dynamic, adjustable payment terms rather than static one-size-fits-all approaches.

Current Payment Methods: The Gap Between Legacy Systems and Modern Needs

9. Approximately 40% of U.S. B2B payments still made via paper checks

Despite technological advances, approximately 40% of B2B payments in the U.S. still rely on paper checks. This legacy dependence creates friction, delays, and security vulnerabilities that modern payment infrastructure eliminates.

10. 51% of companies perform up to half of payment operations manually

Operational inefficiency remains widespread. 51% of companies perform at least half their payment operations manually, leading to errors, delays, and excessive labor costs. Platforms with unified payment abstraction layers automate these workflows.

11. ACH payments processed $54.2 trillion in B2B transactions in 2024

ACH remains a backbone of B2B commerce, processing $54.2 trillion in 2024. Merchants need platforms supporting multiple payment rails—including ACH, credit cards, and alternative methods—through a single integration point.

Cash Flow and Payment Delays: The Hidden Cost of Inflexible Terms

12. 64% of companies face delayed payments, waiting an average of 43 days

Late payments plague most businesses. 64% of companies experience delayed payments, with suppliers typically waiting 43 days to receive funds. This delay cascades through supply chains, affecting everyone from manufacturers to retailers.

13. B2B enterprises wait 40.3 days on average to receive payments

The average wait time for B2B payments stretches to 40.3 days, significantly impacting working capital availability. Businesses using subscription billing with automated payment capture reduce this uncertainty substantially.

14. 60% of small businesses report cash flow issues due to late payments

Cash flow problems from late payments affect 60% of small businesses in the U.S. These issues often stem from misaligned payment terms rather than actual inability to pay—a problem solvable through better payment infrastructure.

15. Office and facilities management companies wait 105 days for payment

Industry-specific delays vary dramatically. Office and facilities management companies wait 105 days on average for payment—more than three months of cash flow uncertainty that threatens operational stability.

16. 55% of all B2B invoiced sales in the U.S. are overdue

More than half of all B2B invoices—55%—are overdue in the United States. This systemic issue makes automated dunning management and payment retry logic essential features for any serious ecommerce platform.

Fraud and Security: Why Modern Payment Systems Matter

17. 79% of organizations were victims of payment fraud attempts in 2024

Payment fraud remains pervasive. 79% of organizations were victims of payment fraud attempts in 2024, making secure payment processing a business imperative rather than a nice-to-have feature.

18. Organizations lose 5% of revenue to fraud, primarily from manual checks

The Association of Certified Fraud Examiners reports that typical organizations lose 5% of revenue to fraud, with manual check processing being a primary vulnerability. Encrypted card vaults and PCI-compliant checkout systems dramatically reduce this exposure.

19. 75% of companies report fraud when processing paper invoices

Paper-based invoice processing correlates directly with fraud vulnerability. 75% of companies report experiencing fraud attempts tied to paper invoice workflows—a risk eliminated through digital payment automation.

20. 25% of European bankruptcies result from late payments

The consequences of payment problems extend to business survival. In Europe, 25% of bankruptcies stem from late payments by customers. This statistic underscores why robust payment management capabilities aren't optional for growing businesses.

Automation and Technology: The Path to Payment Efficiency

21. Nearly 80% of B2B companies are digitizing paper payment processes

The transition away from manual payment processing is well underway, with nearly 80% of B2B companies actively digitizing their paper-based payment processes, recognizing the efficiency and security benefits of automation.

22. Only 5% of midsize businesses have fully automated AP and AR

Despite recognition of automation benefits, only 5% of midsize businesses have achieved full accounts payable and receivable automation. This gap represents a significant competitive advantage for merchants using platforms with native payment workflow capabilities.

23. Only 17% of businesses have fully automated payment processes

Even broader analysis shows just 17% of businesses have achieved complete payment automation. The remaining 83% face higher costs, more errors, and slower cash cycles than their automated competitors.

24. 98% of businesses report automation will streamline AP departments

The potential is widely recognized: 98% of surveyed businesses acknowledge that automation will help streamline their accounts payable operations. Implementation—not awareness—is the barrier.

Payment Processing Costs: The Economics of Flexibility

25. Processing a single supplier payment costs $8 on average

Payment processing carries significant hidden costs. The average cost to process one supplier payment reaches $8, with 62% stemming from labor alone. Platforms charging 0% transaction fees on external gateways help merchants retain more margin.

26. Paper invoice processing shows 18% error rates

Manual invoice handling introduces substantial error risk. Companies report 18% error rates when processing paper invoices—errors that require costly corrections and damage customer relationships.

27. 80% of potential early payment discounts go unclaimed

Delayed payment processing creates missed opportunities. 80% of potential discounts from early payment terms go unclaimed due to inefficient invoice handling. Automated payment systems capture these savings consistently.

Working Capital Impact: How Payment Terms Affect Business Health

28. Extending supplier payment terms by 30 days boosts working capital 8%

Strategic payment term management creates measurable financial benefits. BCG research indicates that extending supplier terms by 30 days can boost working capital by up to 8%—capital available for growth investments.

29. 82% of business failures stem from poor cash flow management

The stakes are existential. 82% of business failures trace back to poor cash flow management—often directly tied to inflexible or poorly structured payment terms. Platforms with native subscription management and flexible billing intervals help merchants maintain predictable cash flow.

30. 88% of business leaders feel cross-border payments affect cash flow

International commerce adds complexity. 88% of business leaders report that accepting cross-border payments impacts their cash flow management and hinders growth. Multi-currency pricing with explicit rules per currency—not just automatic conversion—helps merchants control international payment timing and amounts.

Implementation Priorities for Payment Flexibility

Merchants seeking to capitalize on these payment term advantages should prioritize:

• Native payment infrastructure - Avoid platforms requiring third-party apps for basic payment flexibility
• Multi-gateway support without penalties - 0% transaction fees on external payment gateways preserve margins
• Built-in subscription and installment capabilities - Multi-part payment plans should work natively, not through app integrations
• B2B net terms support - Integration with services like Resolve enables trade credit without custom development
• Automated dunning and retry logic - Reduce involuntary churn through intelligent payment recovery
• International payment localization - Support explicit pricing rules across currencies, not just conversion calculations

Frequently Asked Questions

How do custom payment terms impact customer conversion rates?

Custom payment terms significantly improve conversion rates by removing purchase friction. Research shows net terms increase buyer acquisition by 38%, while 40% of buyers increase spending after gaining access to flexible payment options. The ability to offer installments, net terms, or split payments addresses the financial barriers that cause cart abandonment. Payment flexibility transforms hesitant prospects into confident buyers.

What is the average increase in sales when offering Buy Now, Pay Later options?

BNPL and flexible payment options drive substantial revenue increases beyond initial conversion improvements. 15% of buyers double their monthly purchasing after gaining access to payment flexibility, while 84% of buyers spend more following credit limit increases. Average spend grows 56% within three months of receiving increased credit limits. These dramatic improvements demonstrate that payment flexibility directly correlates with higher customer lifetime value.

How can businesses manage the operational complexities of offering multiple payment term options?

Operational complexity decreases when payment flexibility is built into the platform rather than bolted on through third-party apps. Platforms with unified payment abstraction layers handle multiple payment methods through a single integration, while native subscription billing eliminates the complexity of managing separate subscription apps. This approach reduces the 51% of payment operations currently performed manually. Built-in automation eliminates the labor costs and error rates associated with manual payment processing.

What are the key statistics around reducing subscription churn with flexible billing?

Subscription businesses with flexible billing options see measurable retention improvements. Since 82% of business failures stem from cash flow issues, giving subscribers options to pause, adjust billing cycles, or switch between payment plans prevents involuntary cancellations. Automated dunning rules and payment retry logic further reduce churn from failed payments. Flexible payment terms transform rigid subscription models into customer-centric experiences that accommodate changing business needs.

How do payment terms affect working capital and cash flow?

Payment terms directly impact financial health in measurable ways. Extending supplier terms by 30 days boosts working capital by 8%, while optimizing terms can unlock 5-10% of working capital for larger organizations. Conversely, 60% of small businesses report cash flow problems from late payments—making predictable, automated payment collection essential for sustainable growth. Strategic payment term management transforms cash flow from a constraint into a competitive advantage.