Payment Terms Optimization

Overview

Payment terms define when a B2B customer must pay for goods delivered on credit: net-30 (due 30 days after invoice), net-60, net-90, or early-payment variants like "2/10 net-30" (2% discount if paid within 10 days). Offering flexible payment terms is a competitive advantage in B2B commerce — it reduces friction in the purchase decision — but introduces credit risk that must be carefully managed.

The right tools depend on your platform. Shopify Plus, BigCommerce B2B Edition, and several WooCommerce plugins provide native net-terms support. For smaller setups, a combination of your ecommerce platform and an invoicing tool (Invoiced, Stripe Invoicing) is the most practical approach.

When to Use This Skill

• When moving from prepay-only to net-terms for B2B customers to increase conversion
• When different customer segments need different terms (SMB net-30 vs. enterprise net-60)
• When you want to incentivize early payment with discounts to improve cash flow
• When setting up a new wholesale or distribution channel with trade accounts
• When credit losses are rising and you need better credit limit enforcement

Core Instructions

Step 1: Determine your platform and choose the right payment terms tool