The verdict in three sentences
A UK SME selling online to businesses without net terms loses part of its orders, because a corporate buyer expects an invoice at 30 or 60 days, not a card payment. B2B payments fintechs solve this for 1.5 to 3% per transaction, paying the seller within 24 to 48 hours and guaranteeing against non-payment. With GBP 2,600 to 7,000 of integration and an average order value up by about 25%, the project usually pays back in under a quarter.
The legal framework: what UK rules allow
The Late Payment of Commercial Debts (Interest) Act and the 2026 payment practices rules govern payment terms between businesses. Your online offer must comply, and so must the fintech you choose.
| 2026 rule (UK) | What it requires |
|---|---|
| Default term without agreement | 30 days after invoice or delivery |
| Contractual term between private companies | up to 60 days, longer only if not grossly unfair |
| Statutory late payment interest | 8% above the Bank of England base rate |
| Fixed compensation per late invoice | GBP 40 to 100 depending on invoice size |
| Payment practices reporting | mandatory for large companies, published twice a year |
| Public sector supply chain | 30-day payment expected under procurement rules |
In practice, offering 90-day terms at checkout invites disputes and scrutiny of your payment practices. Serious solutions offer 30, 45 or 60 days, sometimes split into 3 instalments.
2026 solutions and their cost
Three approaches exist: managing credit yourself, using a B2B payments fintech, or relying on classic invoice finance. Fintechs dominate e-commerce because they plug into the checkout and decide in seconds.
| Option | Cost per transaction | Non-payment guarantee | Seller payout time | Integration (GBP) |
|---|---|---|---|---|
| Net terms managed in-house | 0% but 1 to 4% bad debt risk | No | 30 to 60 days | 1,700 to 4,300 |
| B2B fintech, net 30 | 1.5 to 2.2% | Yes | 24 to 48 h | 2,600 to 5,200 |
| B2B fintech, net 60 | 2.2 to 3% | Yes | 24 to 48 h | 2,600 to 5,200 |
| B2B fintech with 3 instalments | 2.5 to 3.5% | Yes | 24 to 48 h | 3,500 to 7,000 |
| Classic invoice finance | 0.5 to 1.5% plus financing charge | Depends on contract | 48 h to 5 days | 900 to 2,600 (outside checkout) |
| Trade credit insurance only | 0.1 to 0.3% of insured revenue | Yes, partial | 30 to 60 days | not applicable |
Integration cost depends on your platform: an existing plugin for Magento, WooCommerce or Shopify connects from about GBP 2,600, while a custom site linked to the ERP for invoicing and reconciliation reaches GBP 7,000.
What to check before signing
Look first at the acceptance rate: a fintech that declines 30% of buyers, especially companies under 2 years old, does not solve your problem. Then check the credit limit per customer, often GBP 8,500 to 43,000, and whether it can be raised for key accounts. Finally, review returns and credit note handling: the fintech must adjust the receivable automatically when a customer returns part of an order, otherwise your finance team will spend hours on reconciliation.
Mini case study
Sarah, finance director of an industrial supplies SME in east London, generates GBP 1.03 million in online revenue with an average order of GBP 585, paid only by card or bank transfer upfront. The sales team estimates it loses 15% of baskets at payment.
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She integrates a net 30 and net 60 fintech for GBP 4,700, at an average cost of 2.1%. Over 12 months, the average order rises to GBP 730 (+25%) and checkout abandonment halves. Online revenue reaches GBP 1.39 million, 70% on terms, i.e. GBP 973,000 subject to fees: GBP 20,400 in commissions. Gross margin at 32% on the additional GBP 360,000: GBP 115,200. Net first-year gain: 115,200 - 20,400 - 4,700 = GBP 90,100, with no bad debt to carry.
FAQ
Does the fintech really pay the seller before the due date?
Yes, most pay out within 24 to 48 hours, minus their 1.5 to 3% commission. The buyer then pays the fintech at 30 or 60 days.
What happens if the buyer does not pay?
With a non-payment guarantee, the fintech bears the loss and handles collection. You keep the amount received, except in case of a dispute over the goods.
Can we offer more than 60 days?
Rarely: beyond 60 days, terms can be challenged as grossly unfair and large buyers must report them publicly. Statutory interest runs at 8% above base rate on late invoices.
How long does integration take?
Allow 2 to 3 weeks with an existing plugin and 4 to 6 weeks for a custom site linked to the ERP. The fintech's compliance onboarding runs in parallel and takes 5 to 10 days.
Are small business customers accepted?
Acceptance rates range from 70 to 90% depending on the fintech. Companies under 12 months old or without filed accounts are the most often declined.
Let's scope your project. Tell us your e-commerce platform, average order value and target terms: we price net terms integration between GBP 2,600 and 7,000, delivered in 2 to 6 weeks. 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.
