Mondu has released its Digital Trade Account service. The new product offering enables B2B merchants and marketplaces to provide their business customers with a trade account. Moreover, it will allow them to consolidate several purchases within a pre-set period into one statement.

Buyers settle their bill at the end of the pre-set period according to pre-aligned net terms. While buyers pay according to the net terms, Mondu pays out the merchants or the marketplace after every purchase according to a pre-aligned payment schedule. This may mean a next-day payout, and Mondu protects the merchants from default, credit and fraud risks.

Additionally, Mondu manages the payment collection from the buyers according to the payment schedules. It takes on the operational burden from reconciliation to debtor management. Merchants obtain the economic benefits of offering a Trade Account to their business customers without the financial and operational burden.

Digital Trade Account: ‘answering a real need in the market’

Malte Huffmann, co-founder and co-CEO of Mondu, said: “There is a clear opportunity for Merchants to increase their sales by making frequent purchasing easier. Neither sellers nor buyers want to spend time issuing and paying numerous invoices. By creating the Digital Trade Account, we’re answering a real need in the market. And delivering further on our commitment to make payments a positive experience and business growth lever. Merchants who offer a trade account can double spend per customer.”

Business buyers tend to have inherently high buying frequencies. This is especially the case in verticals like Car Parts, Food and Beverage, Construction Materials, and Office Supply, where replenishing stock based on demand happens frequently. This poses a significant challenge for buyers. Keeping track of separate orders and reconciling each purchase with the correct invoice is a manual and error-prone process for many companies. Mondu says that this is where the Digital Trade Account comes in.

Relying on Mondu’s credit engine, merchants can offer new and existing customers a trade account. This enables them to buy as often as they want within a pre-assigned purchasing power. At the end of each period, purchases are aggregated and summarised in a single statement. This can be paid with net terms agreed between the merchants and Mondu. This saves time, reduces errors, and makes payments next-level convenient for buyers. The enhanced convenience has the potential to double customer spending.

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By GlobalData