Hokodo, Balance release research on B2B payment terms

The report found that 44% of B2B sellers surveyed are preparing to expand their ecommerce operations into Europe in 2024, while 34% of merchants plan to extend into the Americas, with overall growth projected for the upcoming period. Data shows that payment terms have a considerable influence on this, with 65% of B2B sellers considering that providing payment terms is essential for business growth in their respective markets. This indicates that expansion could be impeded without receiving access to flexible B2B payment terms.

According to Hokodo’s officials, the research suggests that many businesses are including payment terms in their long-term strategy. Small business owners also consider global payment terms an urgent requirement for the expansion of their operations, with 79% of UK and US respondents within the USD 80 million and USD 400 million revenue range supporting this. Moreover, the report underlines that cross-border payment terms are central for businesses to secure long-term growth.

Hokodo, a B2B Buy Now, Pay Later (BNPL) solution provider, and Balance, a B2B payments platform, initially partnered at the end of October 2023, with the two companies aiming to develop a one-stop shop for payment terms. Through this, Hokodo and Balance intended to allow global B2B companies to extend flexible payment to customers across Europe and North America. Their financial solution was expected to include adaptable payment terms, technological capabilities, global accessibility, and an API-first approach.

With its trade credit management solutions embedded in one platform, Hokodo intends to allow business buyers to access payment terms, while merchants can receive upfront and in full payments without facing risk. In addition to its partnership with Balance, Hokodo collaborated with Fuse to enhance credit decisioning and provide finance options for SMEs. By joining forces, the company leveraged Fuse’s credit risk and Income Verification tools to assess businesses’ financial position, offer tailored products, and improve value on B2B borrowing. Also, Fuse’s solutions aimed to provide lenders with a more accurate profile of a borrower’s financial liability and affordability, enabling a more personalised and appropriate credit product offering.

Furthermore, in May 2023, Hokodo made its flexible payment solutions available to Mangopay B2B platforms. Through this, businesses that leveraged Mangopay’s payment infrastructure were enabled to provide their customers with flexible and transparent payment options with Hokodo’s solution. The two companies aimed to allow B2B marketplaces to support their growth and extend their payment capabilities.