Financial Services as a Competitive Advantage for a B2B Online Store

Competition in e-commerce is gradually extending beyond product selection and price. Financial services for B2B are becoming another factor by which corporate buyers can evaluate suppliers, alongside product availability, delivery speed, warranties, and customer service. The impact of payment terms is particularly noticeable when ordering equipment, professional machinery, materials, or large shipments, where a single purchase can amount to hundreds of thousands of hryvnias.

In B2B e-commerce, there is a practical challenge: to enable the buyer to complete a necessary purchase when the full payment exceeds the available budget for the current month. Deferred payments, installment plans for businesses, and financing for specific purchases can be integrated into the customer journey alongside traditional payment methods. The commercial impact of such integration should be evaluated based on specific metrics: conversion rate, average order value, percentage of deferred orders, profit margin, and repeat purchases.

What factors influence the choice of a B2B online store today?

Corporate buyers evaluate suppliers based on the entire procurement process. While the availability of the desired item is important, companies also need to obtain documentation, approve the budget, arrange delivery, and make payment in accordance with internal financial procedures.

The larger the order amount, the more factors influence the decision. A company will approve the purchase of office equipment worth 20,000 UAH and manufacturing equipment worth 500,000 UAH in different ways. In the latter case, the department head, the buyer, the accounting department, the CFO, and the business owner may all be involved in the process.

When choosing a B2B online store, a customer may consider:

• financial services for B2B and available payment options;
• product range and actual availability;
• pricing and pricing transparency;
• order processing speed;
• delivery terms and conditions;
• warranty and after-sales service;
• document flow;
• personalized terms for regular customers;
• the option to defer or split payments;
• speed of approval for large purchases.

Let’s imagine two stores that sell the same professional equipment at similar prices. Both have the product in stock and can deliver it within a few days. The first requires full payment of the invoice, while the second also offers the customer the option to pay in installments. For a company looking to preserve some of its working capital, the second scenario may better fit its current budget.

That is precisely why it makes sense to view payment methods for businesses as part of a store’s commercial offering. Their importance grows along with the average transaction value and the share of corporate customers, for whom liquidity management affects procurement timelines.

What financial services can be offered to B2B buyers?

The simplest option for a regular customer is deferred payment. The supplier ships the goods, and the buyer pays after an agreed number of days. This model has long been used in wholesale trade, but it requires the seller to have sufficient working capital and a system for managing accounts receivable.

Another option involves payment in installments. For example, the buyer pays a portion of the amount when placing the order, with the balance due upon shipment or according to a specified schedule. This approach can be used for equipment, project-based deliveries, large batches of materials, and other transactions that take some time to complete.

Another area involves financing business purchases through a specialized partner. In this case, part of the financial function is transferred from the store to an external service provider. The seller does not need to provide the customer with credit using its own funds.

This category also includes B2B BNPL, or Buy Now, Pay Later. The buyer receives the goods or services and makes payments in installments or with a deferred payment period in accordance with the agreed-upon terms. For a store, this tool can serve as an additional way to close a deal if the payment structure is holding the customer back.

The difference between in-house deferred payment and a model involving a financial partner has a direct impact on the seller’s finances. If the store itself agrees to allow the customer to pay in 60 days, the money for the shipped goods remains in accounts receivable. When a financial partner is involved, the mechanism may allow the retailer to receive funds earlier, while the buyer’s subsequent payments are made according to the terms of the relevant service.

The choice of tool should take into account the margin, inventory turnover, average ticket, financing costs, and the store’s own financial cycle.

How can financial services impact conversion rates and average transaction value?

Let’s consider a hypothetical scenario. A company plans to order professional equipment worth 150,000 UAH from an online store, but this month it can only allocate 80,000 UAH for the purchase. The equipment is needed for work, and the buyer is satisfied with its specifications and price.

If full payment is received, the company has several options. It can reduce the order to roughly fit the available budget, carry over some items to the next month, or postpone the purchase entirely. For an online store, each of these options affects its bottom line.

If a customer has access to financing for B2B purchases, they have another option: to place an order for the required quantity of goods and spread out the payments over time. The actual decision will depend on the cost of such financing, the buyer’s future cash flow, and the terms of the specific service.

For a store, it makes sense to evaluate a financing option based on several metrics:

• conversion from a commercial proposal to a deal;
• average order value;
• number of postponed purchases;
• the percentage of abandoned applications;
• repeat purchases;
• sales of high-value items.

Let’s say the store’s average transaction amount is 90,000 UAH. After a new payment method is introduced, some customers begin placing orders worth 120,000–150,000 UAH. The mere fact that the average transaction amount has increased is not enough to assess the outcome. It is necessary to determine the margin on these sales, the costs of the financial service, and compare these figures with similar transactions using standard payment methods.

This analysis should be based on the store’s actual data. There is no universal percentage for conversion rate growth or average order value for the entire B2B segment, as the results depend on the product category, product pricing, customer base structure, and financing terms.

Why can B2B BNPL be a competitive advantage for an online store?

In the classic scenario, a customer finds a product, adds it to the cart, receives an invoice, and sees the amount due. For a small order, this step usually doesn’t pose any additional difficulties. However, for an order totaling 200,000 or 500,000 UAH or more, a one-time payment may require separate approval and impact the company’s liquidity.

The BNPL model adds a financial aspect to this process. The customer sees the option to split the payment, goes through the approval process, and, upon receiving approval, can complete the purchase under the appropriate payment plan.

In the Ukrainian B2B market, eDilo operates on this principle. Business purchases are processed online, and the taxpayer identification number (TIN) or EDRPOU code is used to preliminarily calculate installment payment options. The buyer page also highlights payment without a deposit and a flexible payment schedule.

The service mechanism involves a financial partner in the transaction. The seller provides goods or services to the buyer; eDilo, as the factor, pays the seller the amount specified in the agreement; and the buyer then makes payments within the specified timeframes.

For an online store, the ability to add installment payment options for businesses to the sales process is particularly useful. Customers can learn about this payment option while selecting a product and take it into account when planning their purchase.

The eDilo website already features examples of how the service can be used to sell high-value equipment. In particular, it includes a case study of the sale of two truck scales with a total value of 2 million UAH, with the buyer’s payment spread out over time. This illustrates the mechanism for applying this financial tool in a high-value B2B transaction, although the results for a specific store must be evaluated on a case-by-case basis. It is advisable to verify the current terms, limits, fees, and service requirements immediately before publishing and activating the service.

How do financial services help sell high-priced items online?

The higher the average transaction value, the more often a seller faces situations where a customer postpones a purchase due to budget constraints. This is typical for manufacturing equipment, professional tools, electronics, construction materials, generators, machinery, medical equipment, and large shipments.

Let’s imagine that a company needs a machine tool costing 600,000 UAH. The company has orders it plans to fulfill using the new equipment, but a one-time payment of the entire amount would significantly reduce its available working capital. After the purchase, the business will still need to cover the costs of raw materials, salaries, logistics, rent, and taxes.

In this situation, the salesperson needs to distinguish between two types of objections. The customer may consider the product itself too expensive compared to alternatives. Another scenario arises when the customer is satisfied with the total amount but their current budget does not allow for a large payment.

The second scenario allows for flexibility in setting payment terms. The store can offer an affordable financing option and show the customer a specific schedule of future payments. The customer compares this with their projected income and decides whether such a purchase fits the company’s financial model.

This approach logically complements the arguments a salesperson uses when selling high-priced B2B products without discounts. If a buyer is deterred by a large one-time payment, an automatic price reduction could significantly cut into the margin without solving the liquidity problem. Splitting the payment opens up a different negotiation scenario.

How can financing be integrated into a B2B store’s customer journey?

A financing option will only work if the customer learns about it at the right moment. If the sales manager mentions the option to spread out payments only after several weeks of negotiations, some buyers may have already canceled their order due to the high price.

Integration should be carried out in a step-by-step manner:

1. Identify the products and categories for which financing is most relevant. You can start with products that have a high average order value and categories with a high percentage of deferred orders.
2. Analyze current customer behavior. Track the average order value, conversion rate, and reasons for abandoning high-priced purchases.
3. Select a financing service. Review the requirements for merchants and customers, the cost, approval times, and payment terms.
4. Add the information to the product page. The buyer should see the available payment plan while evaluating the product’s price.
5. Display the option during checkout. At the checkout stage, clearly explain how the customer can use this payment method.
6. Train your managers. They need to know how the service works and understand in which situations it’s appropriate to discuss financing.
7. Include this information in sales proposals. For large transactions, it’s a good idea to list available payment options alongside the price and delivery terms.
8. Track the use of the financing option. In your CRM or analytics, you should highlight these orders separately.
9. Compare average order value and conversion rates. Analyze the metrics for customers who used the financing option versus those with standard orders.
10. Adjust your sales scripts. Decisions should be based on the results of actual deals.

UX deserves special attention. Notifications about financing should appear before the customer decides that the order doesn’t fit within their current budget. For high-priced product categories, this information can be displayed on the product page, in the shopping cart, during checkout, and in the commercial offer.

We also recommend reading our article“Innovations That Are Changing Business: How Companies Are Implementing Installment Payment and Subscription Models.”

At the same time, the interface should not create false expectations. If financing requires approval, the customer must be informed of this step immediately. The wording on the website must correspond to the actual mechanics of the connected service.

What KPIs should you track after integrating a financial service?

The results of the integration should be measured starting from the first month of operation. The number of financing transactions alone says little about the economic impact for the seller. For example, a new option may increase the average order value but also come with a cost that affects the margin.

For a B2B store, it’s helpful to track:

• the percentage of orders with financing;
• the average order value for such orders;
• conversion rate for high-priced items;
• the percentage of abandoned applications;
• number of postponed purchases;
• repeat orders;
• transaction cycle duration;
• margin;
• the percentage of customers who increased their purchase volume.

It is best to compare metrics for the same time periods and separately by product category. If the average order value for all orders is 80,000 UAH, and for financed purchases it is 140,000 UAH, this does not necessarily prove a causal relationship. It is possible that the financing option itself is used more often for more expensive items.

Therefore, it is useful to analyze groups with similar product prices, customer types, and categories. You should also calculate the financial result separately after accounting for the cost of the service.

For example, a store can compare the conversion rate for equipment orders costing more than 200,000 UAH before and after implementing a new payment method. Additionally, it’s worth measuring the average time from receiving a commercial offer to payment, the percentage of refusals due to budget constraints, and the gross margin on completed deals.

In three to six months, these statistics will show for which categories the financial instrument yields the greatest commercial impact. After that, the store can adjust the placement of information on its website, sales representatives’ scripts, and the list of products for which financing is actively offered.

Financial Options as Part of B2B E-commerce

Competition among B2B stores involves many factors: price, product range, availability, logistics, service, order processing speed, and available payment options. For high-priced items, payment terms can influence a customer’s decision as early as the stage of evaluating whether to make a purchase.

Deferred payments, BNPL, and other financial instruments expand the range of options a seller can offer a corporate buyer. The practical results should be evaluated based on conversion rates, average order value, margins, repeat purchases, the number of deferred orders, and the length of the transaction cycle.

For stores that sell products with a high average transaction value, it makes sense to start by analyzing the reasons for cart abandonment and the structure of orders. After that, you can identify product categories where a financing option could potentially overcome a specific buyer barrier, integrate it into the customer journey, and evaluate the results based on actual data.

You can find more practical resources on purchase financing, B2B sales, and cash flow management on the eDilo blog. Subscribe to learn more about running a profitable business!