When it comes to Order and Invoice Management of B2B sales for brands, wholesalers and distributors, there are a variety of ways to manage the scenario of Buy Now Pay Later orders, such as Net Terms.
Each has their pros and cons, so it’s important to understand the differences and pick what’s best for your business. So let’s review the options and how your business can benefit, or be hindered, by each:
Use a Third Party Solution
One option is to simply let another company manage offering and collecting on purchases made with terms. This can include extending pay over time options.
On the bright side, you as a business don’t have to take on the risk. In exchange for that, you pay a fee to the party who does out of each sale, but are guaranteed payment within hours or days.
The biggest downside is they have the final say over who’s approved, and for what terms. If your buyer doesn’t accept the offer, or doesn’t get approved, that can impact your bottom line. But that also means robust fraud protection for your business.
Process Through Accounting Software
B2B Ecommerce solutions like Zoey can communicate with accounting software, such as QuickBooks Online, with integrations that can invoice on a schedule, or set a due date based on when a buyer is required to pay.
With these integrations, new orders get funneled to the accounting software for managing of payments and invoicing, and then sends a confirmation back to the Ecommerce software when an order is paid.
This can allow for easier centralization of invoicing, but in this case the seller takes on the risk of payment collection. Late payments and unreceived payments can have an impact on the business if things fall too far behind. This means the risk of damaged relationships when orders have to be held back due to lack of payment.
Bill Directly Through the Commerce Platform
While accounting software may be great for those who have someone to manage it or want to centralize invoicing from a variety of scenarios, some businesses prefer to do all their Ecommerce work in one place.
An invoicing system inside the Ecommerce platform can allow for deposit/balance, installment payments and more to be billed within the platform. This broadens Ecommerce’s effectiveness beyond simple credit card and single payment purchase scenarios.
Keeping it all in the family within the Ecommerce dashboard makes it easier to run all operations in one place. The same risks around lack of payment persist, and being outside the accounting software may not offer a complete picture in some cases.
However You Work, Zoey Can Help
Our team understands that each business has their own ways of operating. Talk with us to learn how we can help transform your B2B Order and Invoice Management with our suite of solutions:
