INDUSTRY USE CASE
Pet food and accessories industries growth engine – “Bone” appétit!
Are you a cat or a dog person? In Europe the odds are you’re a cat person: 127 million cats live in European households while 104 million dogs do [1]. Birds, small mammals, aquarium animals (e.g. fish) and terrarium animals (e.g. reptiles, insects) come next. And all 340 million of our domesticated friends eat pet food!
Pet food market
49% of European households have at least one pet. And, the pet food market is valued at around 29.4 billion euros. That’s 8.6 million tonnes of food, with dogs, who we all know love to eat, consuming 47% of that, and cats about 39%. Competition seems well-established: there are over 400 pet food manufacturers in Europe, and over 350 plants creating and processing the food. [2]
Pet accessories market
It’s not just food to keep our furry friends happy. Toys, accessories, clothing, comfortable sleeping spots, and so on are always on a good pet owner’s mind. Globally, the pet toys and accessories market looks very healthy, with a CAGR of 8.7% up to 2031. Health/hygiene-focused products, premiumisation, enrichment, and travel products are all pushing CAGR up in Europe. [3]
Apparently European consumers are increasing their loyalty and subscription services for pet accessories, so ‘[t]his development is bolstering consistent demand for pet accessories, wellness products, and connected pet care solutions across the European market.’ [3]
B2B short-term financing
That means there’s a lot of B2B trade before little Flopsy or Mr. Scratchypaws scarf down their kibbles! How are deals between manufactures and retailers, or manufacturers and wholesalers, or wholesalers and retailers financed? Factoring? Bank loans?
Maybe you’re barking up the wrong tree? What about payment terms extended via a modern Buy Now, Pay Later approach?
TermsTech improves your cash flow
TermsTech does just that: it provides transaction-based payment terms that enable the seller (e.g. manufacturer, wholesaler) to get paid upon delivery while the buyer (e.g. retailer, wholesaler) gets to pay later according to agreed terms, perhaps 30, 60, 90, or 120 days later.
This improves the cash flow of both merchant and customer while enabling the growth of strong long-term business relationships. Get in touch to learn more.
Sources:
[2] https://europeanpetfood.org/about/statistics/
[3] https://www.mordorintelligence.com/industry-reports/pet-accessories-market
Here’s how it works for businesses in pet food and pet accessories
You integrate TermsTech’s payment terms into your online platform or e-commerce, or use our platform for offline sales. TermsTech enables you to offer digital trade credit to your customers.
When theychoose to pay with TermsTech’s payment terms, they defer payment of their purchased pet food based on agreed payment terms. However, you receive payment from TermsTech upon delivery.
Our payment terms solution is tailor-made and caters for all your needs. You don’t have to worry about credit rating, financing, fraud protection, risk management, late payments or even debt collection because we handle of that.
We arrange the financing so you can get paid up front, while shippers pay us back in line with their chosen terms.
5 reasons to choose TermsTech as your payment terms provider
Enhance customer experience
B2B customers love to pay for goods with credit. Offer TermsTech’s payment terms at your checkout and watch your conversion rates increase while you attract new customers. Flexible. Fast. Easy to use.
Larger transaction sizes = grow revenue
Without providing payment terms, only a few B2B customers would be brave enough to make large transactions. Our credit limit strategy of up to EUR 200k makes the buying decision easier.
Fast and consistent cash flow
Your cash flow and working capital are key to a successful business. We pay you up front and the buyer pays us back via payment terms up to 120 days. It’s a win-win for you and your customers.
Fine-tuned credit check
Give your business the reputation it deserves. With our in-house-developed eligibility assessment tool, you can rest assured that we extend payment terms only to those with a good credit rating. Not only is our process lightning fast, it takes the pressure off of you to run your own checks.
Risk-free terms
Any non-payments? That’s not your problem anymore! Our Buy Now, Pay Later solution is completely risk-free for you. Any payment defaults due to fraud or non-payment are on us. This way you can reduce your risk while focusing on what you do best. TermsTech helps you to build your business wisely and safely.
Contact us
Hi, I’m Wouter!
I’d love to discuss how we can help your operation with our working capital solutions. I’m looking forward to meeting you and answering all of your questions about AREA42.
