The verdict in three sentences
For a New York distributor, offering net 30 or net 60 terms online without carrying the credit risk means, in 2026, a B2B BNPL or net terms provider charging 2 to 5 % per transaction, or trade credit insurance on top of your own receivables. Integration costs 6,000 to 18,000 USD and the average order value of customers who use terms rises 20 to 30 % according to market feedback. The right choice depends on your gross margin, the share of customers without a credit history and your capacity to handle collections in-house.
Ways to offer terms without carrying the risk
Six options coexist on the US market, with very different costs and levels of protection (2026 orders of magnitude).
| Option | Indicative cost | Who carries bad-debt risk | Cash flow |
|---|---|---|---|
| In-house terms, uninsured | No fees, but 1 to 3 % bad debt and working capital cost | You | Collected at due date |
| In-house terms + trade credit insurance | 0.2 to 0.5 % of insured sales | The insurer, 70 to 90 % | Collected at due date |
| Factoring | 1 to 3 % fee + financing rate | The factor (if non-recourse) | Advanced within 24 to 48 h |
| B2B BNPL or net terms at checkout | 2 to 5 % per transaction | The provider, non-recourse | Paid out within 1 to 3 days |
| Corporate or purchasing card | 2 to 3 % | Card issuer | Paid out within 1 to 3 days |
| Early-payment discount | 1 to 2 % discount | None | Immediate |
The checkout-embedded option stands out for its instant decision: the business buyer is checked in seconds (EIN, business credit data, limit), picks net 30 or net 60, and you get paid within days. The provider handles invoicing, reminders and collections.
Legal framework and integration cost
Unlike France, the United States sets no federal cap on payment terms between businesses: net 30 is the norm, net 60 is common for large accounts, and anything is negotiable in the contract. Late fees must be stated in your terms and conditions and stay within state usury rules; in New York, many sellers apply 1 to 1.5 % per month. Remember that New York City sales tax (8.875 %) applies unless the buyer provides a resale or exemption certificate, which your checkout must capture.
| Integration component | 2026 cost (USD) | Timeline |
|---|---|---|
| Net terms app on Shopify, BigCommerce or WooCommerce | 6,000 to 9,000 | 2 to 4 weeks |
| Custom integration (Magento, headless, in-house site) | 9,000 to 18,000 | 4 to 8 weeks |
| Per-customer terms display (net 30 or 60, limit) | Included or 1,500 to 3,500 | 1 to 2 weeks |
| Invoice sync with ERP (NetSuite, QuickBooks, Dynamics) | 2,500 to 6,000 | 2 to 3 weeks |
| Tax exemption certificate capture | 1,000 to 3,000 | 1 to 2 weeks |
Providers usually charge no setup or subscription fee: their revenue is the per-transaction fee, which depends on the term offered (net 30 cheaper than net 60) and your customers' risk profile.
When net terms pay off
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The maths is simple: the fee must stay below the gross margin generated by additional orders plus the bad debt you avoid. With a 25 to 35 % gross margin, a 20 % larger basket easily covers a 3 % fee. With a 10 % margin, negotiate the rate or limit terms to large orders, for instance above 500 USD.
Mini case study
Rachel, CFO of an electrical supplies distributor in Long Island City, does 6.5 million USD online with an average order of 1,300 USD. She enables net terms at checkout, used by 40 % of orders, or 2.6 million USD of revenue.
Cost: 2.6 million USD x 3 % fee = 78,000 USD a year. Gain: the average order of these customers rises 25 %, or 650,000 USD of additional revenue; at a 28 % gross margin, that is 182,000 USD of margin. Net result: about 104,000 USD a year, minus 12,000 USD of integration in year one. Rachel also removes her uninsured receivables on these customers, which were costing her about 1.5 % in bad debt.
FAQ
Is B2B BNPL only for large accounts? No. Automated underwriting also approves small businesses and young companies, with lower limits, often 2,000 to 10,000 USD. Approval rates usually exceed 80 % of applications.
Can we offer net 90? Yes, US law allows it, but provider fees rise sharply beyond 60 days, often above 5 %. Many distributors reserve net 90 for a handful of strategic accounts on in-house credit.
Who chases late payers? With a non-recourse provider, the provider handles reminders and collections, and you are paid even if the buyer defaults. With credit insurance, you chase yourself and the insurer covers 70 to 90 % of the claim.
How long does it take to go live? Allow 2 to 4 weeks with an existing app and 4 to 8 weeks for a custom integration, including underwriting and invoicing tests.
Should terms be shown to every customer? Show them from the product page and in the cart for identified business accounts. Sites that display terms early see 10 to 20 % higher B2B conversion (market estimate).
Let's scope your project. Tell us your platform, online revenue and margin, and we will scope the net terms integration, its per-transaction cost and the go-live timeline. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.