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Real-time Credit Check for B2B Online Stores

If you offer payments by invoice in your online store, you know the worry about payment. Without wanting to paint the devil on the wall, this fear is quite justified. Especially in the business customer sector, the sums involved are very high. So it's all the more important to be sure of your customers' ability to pay.

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Bild: Sincerely Media, Unsplash

Unfortunately, there are always attempts to deceive, or simply problems with non-payment, when paying by invoice over the Internet - just as there are in the analog world. But you can protect yourself and your company from this with credit checks.

  • Risk reduction - How do you ensure that you are not deceived?

  • What is a credit check?

  • Why does a credit check promise security?

  • What does a credit check look at?

  • How does a credit check work?

  • This is how the automated credit check works when buying on account with Billie Boost

Risk reduction - how to make sure you are not deceived?

To mitigate the risk of being deceived when selling via the online store, you can pay attention to various factors. The delivery address, e-mail address, types of goods purchased, or even the invoice amount can already show the first signs of attempted fraud. However, if you want to be on the safe side, you should by no means do without a credit check of your customers.

What is a credit check?

Definition of credit assessment

The credit check is the examination of the creditworthiness of a business partner. Based on this, you can decide whether or not to offer this customer purchase on account.

And what is creditworthiness?

Definition of creditworthiness

The creditworthiness, or synonymously also credit rating, describes the solvency of an economic person. It therefore defines the ability as well as the will to repay debts incurred.

When and by whom may a credit check be performed?

A credit check may be carried out before a contract is concluded if at least one party to the contract incurs a financial risk by concluding the contract. This risk is then considered to be a legitimate interest of the credit check.

In the case of a sales contract, this risk applies, if one party makes advance payments. For example, in the case of purchase on account, you as the seller already deliver the goods or services, but your customer does not pay until later.

Who may perform a credit check?

As a matter of principle, the company making the advance payment carries out a credit check before concluding a purchase contract. 

Why does a credit check promise security?

A credit check gives you more security for your liquidity and ultimately for the existence of your company.

If you offer your customers purchase on account depending on their creditworthiness, you reduce the risk of non-payment.

This may sound abstract at first. So let's first take a look at how the credit check actually works and what is looked at in the process.

What is looked at during a credit check?

The following is checked during a credit check of companies:

  • Industry

  • Company name

  • Registered office

  • History

  • Management

  • Previous payment history (if known)

  • Data from external credit agencies

What is a credit agency?

A credit agency is a private company that collects business-relevant data about companies (and private individuals) and passes it on to clients.

The best-known credit agencies are, for example, Schufa or Creditreform.

How does a credit check work?

In the case of new customers, i.e. when no data of their own is available yet, all data about the customer must be obtained from an external credit agency. These usually assign a score based on the available data. Depending on the score, you as a company can then make a decision for or against the purchase contract.

Can I perform the credit check myself?

Theoretically, you can perform the credit check yourself. However, this is very time-consuming and tedious. 

Your online store thrives on always being accessible, as well as fast and fully automated. In order for that to continue to be possible, your credit check must also take place in real time. 

When you purchase on account with Billie Boost, the automated credit check is included in real time.

This is how the automated credit check works when buying on account with Billie Boost

Billie Boost is Billie's invoice purchase tool for business-to-business (B2B) online stores, which allows your customers to purchase directly and pay later after receiving goods or services. However, so that you don't run into liquidity problems in the process, Billie pays you immediately. Billie also assumes the risk of non-payment by your customer. This applies to existing customers, but especially to new customers.

Billie's scoring algorithm takes over the verification of your customers. Via API interface, the company of your customer is verified via the company database. If the credit rating is positive, your customer can use Billie Boost to purchase on account. If the credit rating shows negative characteristics, he will be asked to choose another payment method. However, Billie Boost has an acceptance rate of up to 95%.

With real-time credit checks by Billie Boost including default protection, you are on the safe side and can concentrate on your business.

Automated credit check in real time for your online shop

Do you have an online store for business customers and are you looking for a way to check the creditworthiness of your business customers when they purchase on account? Or do you have questions about B2B payment methods? Then please contact us at info@billie.de.

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