How Traditional B2B Credit Applications Reduce Conversion Rates

by Admin
Jul 20, 2021 10:30:00 AM

Speedy payments have become the norm for online transactions. With Buy Now Pay Later B2B options gaining popularity in e-commerce, it makes sense that business owners have grown to expect the same opportunities for business transactions. 

The traditional B2B credit application is seeing a slow, painful death. Naturally, businesses want timely payments for their goods and services. But, in the age of COVID-19, not all businesses have the cash or credit to pay for the resources they need in full. 

If your customer needs to open a business credit line, like net terms, to work with you, you may be limiting your own business. Here's how B2B credit applications are leading to lower conversions and fewer sales for your business. 


Credit Applications Provide a Poor Customer Experience

As a business, it works in your favor to make paying you as easy as possible. Lengthy credit applications can quickly discourage potential customers from working with you. 

Often, B2B credit applications require financial information that may not be on hand when your customer is ready to buy. That means, while they may have filled a cart or be ready in the payment portal, they'll ultimately experience a delay at the point of sale. If your customer has to step away from the transaction to apply for a line of credit, there's a good chance you won't get that customer back.

Plus, sometimes the person making the purchase doesn't have the information needed to complete a credit application. Many people within a business may have the authority to make buying decisions, but if payment options are limited, that leads to further discussion in the C-Suite. Those discussions may lead to your organization losing business to a vendor with more accommodating payment choices.


Speed is Key for High Conversions

High checkout abandon rates happen when the checkout process takes longer than expected. A B2B credit application can be an unexpected hurdle for any B2B customer. While these businesses can make it easier for you to decide who to work with, an application can lead to a dip in sales when customers don't believe an application is a good use of their time. 

Approval for a new line of credit can take days if you're using a lending partner. If customers don't assume that they'll qualify for a new line of credit, they're likely to give up on the transaction right then and there. For new or seasonal customers, limited financial information can make their applications unappealing to banks, making these businesses less likely to apply or get approved.

Plus, even internal credit applications require some degree of review. Verifying business and banking information takes time, which may be distracting for your team. In the time it takes your employees to review their application, your customer can research your competitors and find a faster option instead.

The quicker a customer can complete the transaction, the better. That makes fast access to a line of credit crucial for boosting conversion rates. Otherwise, you may need to work twice as hard convincing customers that your products or services are the best choices for their company. 


Simple Checkout Processes Drive Sales

Even if your checkout forms are optimized and you have a ton of interested customers, a credit application can add unnecessary steps to your checkout process.

A streamlined checkout process is a fundamental part of a good customer experience. The right process keeps conversions high and reduces abandonment. But, if your customer needs to submit documents showing their financial health, this can delay your customer's order and start your customer relationship off on the wrong foot.

Customers are used to instant approvals and easy payment options for retail checkout. Now that fast and easy payments are the norm, clients may have less patience for B2B credit applications. In 2021, customers are looking for the quickest way to meet their business needs, and a simple checkout reduces confusion and makes buying your product or service the obvious choice.  

Increase B2B conversions


There's a Better Way with Credit Key

The easiest way to boost conversions is to offer clear and simple payment alternatives. 

Thankfully, traditional credit applications aren't the only way to offer your customers a line of credit. Buy Now Pay Later payment options are a customer-friendly way to make your products or services more accessible to your clients. 

Credit Key offers an easy way to help your customers Buy Now and Pay Later without unnecessary risk. Adding this option to your checkout process ensures that you are instantly paid in full; meanwhile, your customer has up to 12 months to pay for your services. Our proprietary algorithm makes a thorough credit decision in real-time, giving customers quick access to the credit line they need to buy from you. 



In a nutshell, traditional B2B credit applications are outdated. In the digital age, B2B companies need instant approvals that can drive conversions and growth. Below mentioned are some of the reasons why credit applications reduces conversions:

  • Credit applications provide a poor customer customer service
  • Speed is key for high conversions
  • Simple checkout processes drives  sales
  • There is a better way with Credit Key

Boost your conversion rates with Buy Now Pay Later options in no time! Contact us for a demo today.

B2B Buy Now Pay Later Solutions from Credit Key

Topics from this blog: B2B Payments

Unlock the Future of Your Business

Fast, frictionless B2B Buy Now, Pay Later solutions. We connect you to the resources you need to help your business flourish.

Sign up for our newsletter