The verdict in three sentences
A business buyer who cannot pay on 30-day terms abandons the basket or calls in, which costs sales and time. B2B net-terms providers (Hokodo, Mondu, Defacto) charge 2-5% of the amount in the UK depending on the term, carry the non-payment risk and pay you within 1-3 days. For a London B2B webshop, this is often more profitable than classic invoice factoring, especially below GBP 17 million in revenue.
Net-terms options available in 2026
The principle is simple: the buyer chooses "pay in 30, 60 or 90 days" at checkout, the provider checks creditworthiness in seconds via the Companies House number, and you are paid immediately. The provider carries the risk and handles collection.
| Criterion (2026 order of magnitude) | Hokodo | Mondu | Defacto | Classic factoring |
|---|---|---|---|---|
| Fee per transaction (UK) | 2-4.5% by term | 2.2-5% by term | 1.2-3.5% (financing) | 0.5-1.5% + interest |
| Terms offered | 30, 60, 90 days | 14-90 days | Up to 120 days | Per contract |
| Non-payment guarantee | Yes, 100% | Yes, 100% | Depending on option | Yes with credit insurance |
| Payout to seller | 1-2 days | 1-3 days | 24-48 h | 24-72 h after assignment |
| Credit decision | Real time at checkout | Real time | A few minutes | Manual, per customer |
| Minimum commitment | None | None | Volume-based | 12 months, minimum revenue |
| Buyer experience | Built into basket | Built into basket | Via API | Invisible, standard invoice |
Factoring remains cheaper on the headline rate, but it does nothing for conversion: it finances your invoices after the fact without giving the buyer a payment option when ordering.
What integration costs
Cost depends on your platform and the quality of your customer data.
| Platform or context | Integration (excl. VAT) | Timeline |
|---|---|---|
| Shopify Plus with official app | EUR 3,000-5,000 | 2-3 weeks |
| Magento / Adobe Commerce, existing module | EUR 4,000-8,000 | 3-5 weeks |
| PrestaShop, module or API | EUR 4,000-7,000 | 3-4 weeks |
| Custom platform via API | EUR 8,000-12,000 | 4-8 weeks |
| ERP sync (invoices, credit notes) | + EUR 2,000-6,000 | + 2 weeks |
| Credit notes and partial returns | + EUR 1,500-3,000 | + 1 week |
The critical technical point is credit notes: a partial delivery or return must adjust the amount owed at the provider, otherwise your customer receives a wrong reminder.
The impact on your numbers
B2B merchants who add net terms typically see average order value rise 20-30% and conversion improve 10-25% on new accounts. On cash, DSO on online sales drops to 1-3 days since the provider pays immediately.
To decide, compare the fee with three costs you already bear: your bad-debt rate (often 1-2% in B2B), time spent on collection, and the cost of financing working capital (5-7% a year in the UK in 2026).
Mini case study
Sarah, CFO of a London B2B webshop selling catering supplies, sees 35% of baskets above GBP 1,300 abandoned at card payment. The site generates EUR 4.8 million in annual revenue.
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- Hokodo integration on Magento: EUR 7,000, average fee 2.9%.
- Assumption: 40% of sales move to net terms, and revenue grows 12% (recovering part of the abandons and bigger baskets), i.e. +EUR 576,000. The net-terms share then reaches about EUR 2.15 million out of EUR 5.38 million.
- Annual cost: 7,000 + (2.9% × EUR 2,150,000) = EUR 69,350.
- Gain: 30% gross margin on EUR 576,000 = EUR 172,800, plus 0.8% avoided bad debt on EUR 2.15 million = EUR 17,200.
Estimated net benefit: about EUR 120,650 in year one, not counting freed-up cash.
FAQ
Is B2B net terms the same as consumer BNPL like Klarna?
The mechanism is similar, but the buyer is a verified company and terms run 30-90 days. The 2-5% fees are paid by the seller, not the buyer.
What happens if my customer does not pay?
With Hokodo or Mondu, non-payment is 100% guaranteed once the order is accepted. You stay paid and the provider handles collection.
Should we drop factoring?
Not necessarily. Many companies keep factoring at 0.5-1.5% for long-standing key accounts and use online net terms for new customers and web baskets.
What acceptance rate can we expect?
In the UK, 80-90% of requests from registered SMEs are accepted in real time. Companies under 6 months old or in insolvency proceedings are generally declined.
How long does setup take?
Count 2-3 weeks on Shopify Plus and 4-8 weeks on a custom platform, ERP sync included.
Let's scope your project. Tell us your platform, B2B average order value and abandonment rate: we will cost the net-terms integration and its impact on your margin. 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.
