Today, one of the biggest growth levers for wholesalers and distributors its at the checkout. Flexible payment solutions have gone from nice-to-have to non-negotiable, reshaping how businesses decide where and how much to purchase.
In this article, we’ll explore why payment flexibility is becoming the new competitive advantage in B2B, and how merchants can measure its ROI with clarity.
In B2C, purchases are often quick, emotional, and relatively low risk. But in B2B, the story is different. Orders are larger, approvals are slower, and cash flow management plays a central role in every buying decision. That’s why the payment experience is becoming one of the biggest factors influencing whether a purchase gets made or not.
Many businesses, particularly SMBs, operate on thin margins and face unpredictable cash cycles. A rigid payment structure can delay or even prevent transactions altogether, creating friction for buyers and lost revenue for sellers.
For B2B buyers, payment flexibility directly supports three critical priorities:
On the other hand, when buyers are offered flexible financing, whether that’s splitting payments into installments, net 30 terms, or financing larger purchases over time, the barriers to buying are dramatically reduced.
A recent B2B study by Allianz Trade showed that:
This data shows that offering flexible payment terms can be a clear driver of growth for B2B merchants.
When it comes to converting B2B buyers, price isn’t the only deciding factor. Timing and cash flow often matter just as much. Even buyers who want to make a purchase may abandon an order entirely if they can’t make the payment terms work for their particular situation. That’s where payment flexibility proves its value.
Research shows that over half of SMBs would switch suppliers if another vendor offered more accommodating financing terms. That number is significant, and it signals that payment terms alone can determine whether a customer chooses you over a competitor.
The buyer preference for flexible payments is pretty straightforward:
For wholesalers and distributors, this translates into a measurable boost in conversion rates. Credit Key data shows that merchants offering embedded financing see both higher order completion rates and higher average order values compared to merchants who only offer rigid terms or traditional financing methods.
Conversion rates are important, but the true ROI of payment flexibility comes from what happens after the first purchase. In B2B, long-term customer relationships often drive the majority of revenue. Payment options that reduce friction don’t simply close a single deal, they encourage buyers to return again and again.
Research shows that acquiring a new customer can be anywhere from five to 25 times more expensive than retaining an existing one, and that even a 5% increase in retention can boost profits by 25–95%. Financing is one of the most effective levers merchants can pull to encourage retention, because:
Over time, this flexibility creates a powerful loyalty loop. Buyers who feel financially supported are more likely to make repeat purchases, expand their relationship with the supplier, and recommend them to others.
Knowing that flexible payment options boost conversions and loyalty is a great start, but merchants need hard numbers to prove ROI. The good news is that the impact of financing can be tracked across multiple stages of the buyer journey.
Here are the most important metrics to measure:
Track the percentage of buyers who complete a purchase when embedded financing is offered versus when it is not. Even small increases in conversion rates can translate into meaningful revenue gains at scale.
Payment flexibility encourages customers to increase the size of their orders. A buyer may hesitate to place a $5,000 order upfront, but with terms like Pay in 4 or Net 30, that same order feels manageable. Compare AOV before and after offering financing to capture this lift.
Buyers who know they can pay on terms that match their cash flow are more likely to return. Track how often customers come back within 30, 60, or 90 days after their initial purchase.
CLV is one of the strongest indicators of long-term ROI. By increasing both order frequency and average spend, flexible financing can directly improve the total value each customer brings in over their relationship with your business.
Financing builds trust and reliability. Compare retention rates among customers who use flexible payments against those who pay up front. A lower churn rate among financed users is a direct signal of ROI.
Flexible financing can also act as a growth lever by attracting new buyers who might otherwise avoid a purchase due to cash flow constraints. Track how many new accounts are acquired as a direct result of offering flexible payment options.
Together, these key metrics create a comprehensive ROI story:
Payment flexibility is now a core driver of B2B growth. When buyers are given more control over payment terms, merchants don’t only close more sales, they can enable larger orders, faster decisions, and deeper customer partnerships that extend well beyond the initial purchase.
The real advantage comes from measuring metrics over time. By quantifying the ROI of flexible financing across conversions, order size, and retention, you can turn these modern payment solutions into a solid growth strategy.