Net Terms-As-A-Service For Buyers and Sellers

In many supply chains—especially in emerging markets—suppliers often let retailers pay later, typically 30–60 days after delivery.

It’s called giving “net terms.” But this is actually informal lending: suppliers carry the cash burden while waiting to get paid.

“Net Terms-as-a-Service” is a digital solution that formalizes this process.

It tracks every invoice, monitors repayment behavior, and enables suppliers to get paid faster through automated financing—while still offering flexible terms to retailers.

Why It Matters

• Suppliers get cash up front
• Retailers keep flexible payment options
• Risk is scored and priced automatically
• The whole system becomes transparent, scalable, and auditable

The Setup: A Supplier Extending Credit

• A supplier sells motorbike parts to retailers across Nairobi.
• Each invoice totals KES 100,000 (about $770 USD).
• Retailers don’t pay upfront—they get Net 30 terms, meaning they pay in 30 days.

Translation: The supplier is quietly lending $770 per retailer, for 30 days—without charging interest or tracking risk.

Let’s say this supplier serves 150 retailers/month:

• Total informal lending: 150 × $770 = $115,500/month
• Annual exposure: ~$1.4M USD in credit extended—manually and invisibly

Now Add Embedded Fintech Layers

Here’s what digital tools change—step by step:

1. Track Lending Behavior

• Each invoice is logged digitally.
• You now know exactly which retailer owes what, and for how long.

Visibility transforms trust from “gut feel” to a ledger.

2. Score Repayment Performance

• Retailer A always pays on time = ⭐️
• Retailer B lags 5–10 days every cycle = ⚠️
• Retailer C hasn’t paid 2 invoices in a row = 🔴

You now have a dynamic repayment profile across all retailers.

📊 Example: Retailer B’s average delay = 7 days → they pay $770 × (7/30) = $179 late every month.

Over a year = $2,148 in recurring liquidity strain for the supplier.

3. Automate Nudges and Incentives

• Day 25: Send a reminder
• Day 30: Apply late fee (e.g., 2%)
• Day 15: Offer “2% early pay bonus”

This creates behavior change—without extra admin.

📉 Even a 10% shift in early payments improves cash flow by ~$11,500/month.

4. Enable Invoice Finance Based on Data

• Fintech layer offers factoring to the supplier:
  • Retailer A’s invoice ($770) = financed at 1% fee because Retailer A always pays on time.
  • Retailer B’s ($770) = financed at 2.5% due to risk profile as Retailer B often pays late.

You now turn static invoices into liquid working capital, priced by real performance.

Multiply this across 150 retailers monthly, and you unlock $115K+ in liquidity per month that was previously frozen.

End Result

The supplier transitions from:

• Hidden lender → Active cash-flow orchestrator
• Manual credit → Digitally priced finance
• Risk guessing → Risk scoring

What was invisible becomes data. What was risky becomes scalable.

WDIR creates intuitive and simple payment experiences globally.

Get in touch today!