Purchase on Account in B2B: Managing Credit Limits

Purchase on account is by far the most important payment method in German B2B commerce - and one of the biggest levers for revenue and conversion in B2B e-commerce. 95 percent of business customers want to buy on account in online shops too (ibi research), yet only around 45 percent of B2B merchants actually offer it (ibi research). Those who do without it typically forfeit up to 30 percent of revenue (ibi research). The reason for the hesitation is almost always the fear of payment defaults. This guide shows how to implement purchase on account with credit checks, clear payment terms and automated credit limit control - so you can offer the most popular payment method while keeping default risk under control.

Why purchase on account is essential in B2B

B2B e-commerce is the growth engine of German online retail. Of around 650 billion euros in revenue generated by digital trading companies, roughly 530 billion euros come from business customer sales (bevh) - the B2B segment therefore has about three times the volume of B2C and grows faster at the same time (bevh). Different rules apply here than in consumer retail: buyers order on behalf of their company, work with fixed budgets and expect the payment terms customary in business dealings. Purchase on account ranks first among them.

The reason is simple: with purchase on account the customer receives the goods first and pays only after delivery - this reduces perceived risk and fits companies' internal approval and accounting processes. That is exactly why buying on account is the payment method business customers request most. It remains central in the overall market too: in online retail, purchase on account accounts for 25.8 percent of revenue, placing it directly behind PayPal at 28.5 percent (EHI Retail Institute). In B2B online commerce specifically, purchase on account is even the most-used payment method: in a survey of 830 B2B buyers it led at 43 percent, ahead of PayPal and direct debit at 42 percent each (HHL Leipzig).

For buyers, purchase on account is also a process matter: orders have to fit cost centres, approval workflows and posting runs. An invoice with a clear payment term transfers cleanly into accounts payable, whereas prepayment or credit card in a corporate context often requires additional internal coordination. Offering the familiar payment method therefore lowers not only the checkout hurdle but also fits into existing procurement processes - a slightly underestimated conversion factor, especially for recurring orders with high basket values.

Purchase on account technically: how the order process works

Purchase on account is more than an extra button at checkout. For the payment method to work safely, several steps interlock automatically - ideally in real time while the customer completes the purchase. The flow typically looks like this:

1. Identification: The shop recognises the logged-in business customer and reads their account including the stored credit line and open balance.
2. Credit and limit check: Before approval, the system verifies whether creditworthiness and available credit limit cover the order value.
3. Approval decision: If the check is positive, purchase on account is offered; otherwise alternative methods such as prepayment appear.
4. Order and invoice: After completion an invoice with a defined payment term is created, which can be issued as ZUGFeRD or XRechnung.
5. Balance update: The customer's open balance is increased and the available limit reduced accordingly - until payment is received.

This chain can be fully integrated into the shop so buyers receive the familiar invoice and your accounting has no manual rework. In a B2B self-service portal, customers additionally view their credit line, open invoices and payment terms themselves - noticeably relieving your sales team.

Real-time credit checks before approval

Purchase on account lives or dies by risk management - and this is exactly where many merchants have catching up to do. A quarter of B2B companies perform no risk check at all on customer orders (Creditreform). Of those that do check, only 27 percent can perform the assessment in real time, while 33 percent need up to 24 hours for it (ibi research). A delayed check, however, means either abandoned purchases or uncontrolled risk.

A tiered check directly in the purchase process makes sense: for low order values and a good payment history, approval happens automatically; for higher values or new customers, additional criteria apply. Signals include internal payment experience, account age and revenue history as well as - with the appropriate legal basis and consent - external credit information. It is important that the check is documented transparently and designed to comply with data protection rules.

A threshold model works well in practice: below a defined order value and with an unremarkable history, an automatic approval applies; above it, a stricter check. This keeps the checkout frictionless for the majority of orders, while larger or atypical orders are controlled deliberately. What matters is that the criteria are consistent, documented and adjustable at any time - for example when the payment behaviour of an industry or an individual customer changes. This lets you fine-tune the risk level without slowing down the purchase process for good customers.

A credit check is not a vote of no confidence in the customer, but the prerequisite for being able to offer the desired payment method on a lasting basis at all.

XICTRON e-commerce team

Manage credit limits dynamically instead of flat approval

The heart of safe purchase on account is credit limit control. A credit limit is the maximum open amount a customer may owe on account. If it is reconciled against the open balance on every order, the risk per customer stays limited at all times - regardless of how many orders run in parallel. A static, flat limit for all customers is neither safe nor sales-promoting. A dynamic limit that reflects creditworthiness and payment behaviour is considerably more effective.

• Individual starting limit: Each customer receives a limit matching creditworthiness, industry and expected order volume.
• Ongoing adjustment: On-time payments raise the limit step by step, payment delay lowers it automatically.
• Real-time reconciliation: Before each approval, the system checks whether open balance plus new order stay within the limit.
• Segmentation: Customer groups such as regular customers, new customers or public-sector buyers get their own rule sets.
• Transparency: Customers see their available limit in the account and can plan their orders accordingly.

This creates a self-regulating system: reliable customers gain more room to manoeuvre, conspicuous accounts are automatically tightened. That is fairer than a blanket block and protects your liquidity at the same time. We develop the control logic individually and connect it to the data sources you already use - such as your ERP or inventory system and accounting systems via the DATEV interface.

A worked example illustrates the principle: a customer with a good credit score receives a credit limit of 20,000 euros. Their open balance from current invoices is 12,400 euros, so their available line is 7,600 euros. If they now order for 4,850 euros, the system checks in real time: 12,400 plus 4,850 equals 17,250 euros and stays below the limit - the order is approved on account and the available line drops to 2,750 euros. A further large order would only be possible after payment is received or the limit is raised. Exactly this reconciliation runs automatically on every order, without your sales team having to intervene manually.

Calculate payment terms, discounts and delays correctly

Purchase on account requires a clear payment term. In B2B, net terms of 14 or 30 days are common, sometimes combined with an early-payment discount. The good news: German companies' payment behaviour is stable. In the first half of 2025, B2B receivables were settled on average after 39.35 days (Creditreform), and the average delay of overdue invoices fell to 7.89 days - the lowest value in ten years (Creditreform). In the second half of 2025 it declined further to 7.50 days (Creditreform).

The average open receivables volume per debtor also fell - from 23,618 euros in the prior year to 19,848 euros most recently (Creditreform). These figures help with calibration: they show which payment terms are realistic and from what point of overdue a dunning process should start. A payment term that is too short deters business customers, one that is too long ties up liquidity unnecessarily.

An early-payment discount is an effective control instrument here: a reduction of, for example, 2 percent for payment within 10 days rewards fast payers and improves your liquidity without giving up the generous 30-day term. It is important to state discount and payment term clearly on the invoice and to communicate them transparently in the shop - so the condition becomes an incentive rather than a source of error in accounting. Payment terms can also be tiered per customer group, for instance longer terms for long-standing regulars and shorter ones for new customers still building their history.

Limit default risk: dunning and safeguards

Even with a good check, a residual risk remains - the key is to limit it and to have processes ready for the worst case. A properly set-up purchase-on-account system markedly lowers the probability of default because it acts at several points:

• Credit and limit check before every approval
• Dynamic credit limits per customer instead of blanket approvals
• Automated payment reminders before the due date
• Tiered dunning with clear deadlines once overdue
• Automatic limit reduction or block on payment delay
• Optional safeguarding of receivables as an additional security layer

A tiered dunning process should be based on real delay data: since overdue invoices are settled on average after around seven to eight days (Creditreform), a friendly payment reminder shortly after the due date is usually more effective than an immediate formal notice. Only after a longer delay do stricter stages apply, including automatic limit reduction. Anyone wishing to safeguard receivables additionally can add this as a separate security layer - without changing the payment method the customer wants.

Just as important as the technology is a clear process: defining fixed deadlines and responsibilities for payment reminder, first and second dunning stage and a possible handover to debt collection lets you react faster and more consistently. Combined with automatic limit reduction on delay, this creates a system that reins in late payers early, before larger amounts remain outstanding - while reliable customers notice nothing of this background process. Purchase on account thus stays a frictionless experience for the vast majority and calculable for your company.

Implementation in Shopware and custom B2B shops

Technically, purchase on account with dynamic limit control can be mapped both in Shopware and in custom-built B2B shops. What matters is not the platform but the clean connection of shop, customer account, inventory and accounting. Credit lines and balances usually reside in the ERP system, which is synchronised with the shop via an interface - so the checkout always decides based on current data.

Bitkom data shows how large the lever of digitalisation is: 95 percent of trading companies can simplify the ordering process through digitalisation and 87 percent see it as an opportunity (Bitkom) - while at the same time 62 percent find digitalising their business processes a challenge (Bitkom). This is exactly where we come in: we develop the purchase-on-account logic as part of a well-thought-out B2B sales process, including credit check, credit limit control and connection to your systems.

A gradual rollout has proven its worth: we first activate purchase on account for selected customer groups with defined limits, evaluate approval and delay data, and then refine the rules (project experience). This way you gather solid empirical values before rolling the payment method out broadly. Because the data basis - credit lines, balances and payment history - is the same one you also use for reporting and forecasting, the clean connection to shop and inventory pays off several times over.

B2B's most popular payment method can be offered safely - provided creditworthiness and credit limit are considered on every order, not just the first.

XICTRON e-commerce team

Use purchase on account as a growth lever

In B2B, purchase on account is not an optional extra but the payment method business customers expect - and it decides between won and lost orders. The supply gap between 95 percent demand and around 45 percent supply (ibi research) is a concrete growth opportunity. With credit checks, dynamic credit limits and clear payment terms, you offer the desired payment method without losing control over your default risk. We are glad to set up purchase on account in your B2B shop - from the risk logic to the connection with your systems.