What Is a “Good” Time-to-Decision for B2B Credit Applications?

In the world of business-to-business (B2B) trade credit, speed matters. Time-to-decision (TTD) – the interval from a credit application’s submission to the final approval or denial – can directly impact sales, cash flow, and customer satisfaction. Unlike consumer credit (where individuals can get a credit card approval in seconds), B2B credit decisions have traditionally been much slower. In fact, one analysis noted that while a consumer can get approved “in seconds,” a typical B2B credit request historically took 7 to 21 days. Given that close to 90% of B2B sales are done on credit terms, a sluggish credit approval process can be a major bottleneck. This post examines what constitutes a fast vs. average vs. slow TTD for B2B credit in the U.S., explores differences by industry, and discusses why it matters – and how to speed things up without taking on more risk.

Benchmarks: Fast, Average, and Slow Decision Times

How fast should a credit decision be? In practice, TTD varies widely across companies. A 2023 survey by the National Association of Credit Management (NACM) found the average processing time for a domestic B2B credit application is about 2.5 days. Responses ranged from lightning-fast decisions in as little as two hours to backlogged processes taking up to two weeks. This wide gap reflects differences in process maturity and complexity.

To put this into perspective, 43% of credit departments say they typically approve new credit applications within one to two days. A decision that takes several days (e.g. 3–5 days) might be viewed as acceptable for more thorough manual reviews. However, a delay of over a week would generally be seen as slow in today’s competitive environment – and two-week timelines should ring alarm bells.

It’s worth noting that these benchmarks are improving as more companies invest in automation. Modern best-in-class operations are pushing TTD down to hours or even minutes for low-risk decisions. While not every company needs instant decisions, the trend is clearly toward speed. A credit team that can turn around an application the same day has a competitive edge, whereas taking days or weeks might be a red flag that your process is due for an update.

Industry Variations in Credit Decision Times

Do credit decision speeds differ by industry? Yes – to some extent. Every industry has unique norms and challenges in the credit process, which can affect TTD:

• Construction and Building Materials: This sector often relies heavily on trade references, lien rights, and extensive due diligence, which can slow the process. Credit managers in construction supply report that waiting on trade reference responses can add days to approval times. It’s not uncommon for a construction materials supplier to target ~5 business days for a decision on a new account, because verifying payment history and contractor credentials takes time. The good news is that even in this industry, moves toward online applications are gaining traction. This means references can be handled automatically, which can dramatically speed up the process.
• Manufacturing and Wholesale: Manufacturers and wholesalers often deal with a high volume of credit applications from distributors or retailers. Traditionally, many have used faxed or emailed applications and manual review, yielding a typical turnaround of a few days. According to an NACM poll, nearly 46% of credit departments still rely on email to process new credit apps and 24% are using paper forms. However, this is changing. Many manufacturers are adopting scored credit models and integrating credit bureau data to accelerate decisions.

Of course, every company is different. Within any industry, you’ll find leaders who have embraced automation and laggards who still shuffle paper. But generally, industries with complex projects (construction, industrial) have tended toward longer review cycles, whereas those with digital sales channels (high-tech, online wholesalers) are pioneering rapid credit decisioning.

Why Fast Credit Decisions Matter (Operations & Customer Experience)

The operational and customer experience implications of TTD are significant. A fast credit decision process can be a competitive advantage, while a slow one can hurt your business:

• Sales Conversion and Revenue Timing: In B2B commerce, credit is often the key to closing a sale. If your credit department responds quickly, the sales team can secure the order and ship product sooner, directly translating to revenue. Conversely, a slow decision might cause the customer to delay their purchase or even turn to a competitor willing to offer quicker terms.
• Customer Satisfaction and Experience: Today’s B2B buyers expect prompt, Amazon-like service – including financing. A sluggish credit application process (especially one that involves confusing paper forms or long back-and-forth for missing info) creates a poor first impression. Customers may feel anxious or unvalued while waiting. On the other hand, a swift, transparent approval process boosts the customer’s confidence in your company. It shows that you are easy to do business with and responsive. Simply put, fast TTD = happier customers, which can lead to more repeat business.
• Internal Efficiency and Cost: From an operational standpoint, lengthy credit decision times often indicate labor-intensive, inefficient processes. Credit staff then spend a large chunk of time chasing documents, entering data, and following up on references. (In one survey, 19% of credit managers said credit applications and approvals consume the most time in their day. This is time not spent on higher-value activities like portfolio analysis or collections. Faster decisions usually come from more efficient workflows – which can reduce labor costs and error rates. There’s also a cash flow aspect: the sooner a new customer is approved, the sooner you can invoice them and begin the order-to-cash cycle, improving cash flow timing. A slow process that takes weeks can delay onboarding of new customers and defer potential revenue.
• Risk Management: You might worry that faster credit decisions mean higher risk – but when done right, that’s not necessarily the case. Speed and risk control are not mutually exclusive if you leverage good data and rules. In fact, automation can enhance risk controls by consistently flagging high-risk applicants for extra review, handling tedious research and verifications, and much more.

In summary, a slow TTD drags down sales, annoys customers, and eats up internal resources, whereas a fast TTD (with proper checks) accelerates revenue and delights buyers without compromising credit quality. Little wonder that forward-thinking finance teams are making TTD a key performance metric.

How to Reduce Time-to-Decision (Without Increasing Risk)

Achieving faster credit decisions in B2B doesn’t mean abandoning caution – it means working smarter. Here are strategies and technologies credit managers are using to cut TTD while still managing risk effectively:

• Digital Credit Applications: One of the simplest wins is moving away from paper and PDF forms to an online credit application portal. This ensures all required information is captured upfront (no illegible handwriting or missing fields) and routes data immediately to your team.
• Automation & Credit Scoring: Automated credit scoring models and workflow tools are game-changers for TTD. These systems can pull data from business credit bureaus, financial statements, and even trade references instantly, then apply your credit policy rules to generate a recommendation. By letting software handle the grunt work, you reduce manual analysis time and human error.
• Integrated Data Sources: Waiting on information is a common cause of delay. To combat this, integrate as many data sources as possible into your credit workflow. This could include APIs to pull credit reports, trade credit bureau data (like D&B or Experian business reports), tax ID verifications, and bank references automatically. Modern credit management platforms can even tap alternative data (like fintech databases or public filings) in real-time. When your analysts have a rich file of data within minutes, they can make decisions faster.
• Clear Credit Policies & Delegation: Sometimes the holdup isn’t data, but internal ambiguity. It’s critical to have a well-defined credit policy and approval matrix. This means clarifying what criteria are needed for approval, what risk thresholds you have, and who can sign off at each credit limit. Modern platforms also make it easier for your entire credit team and even the sales staff to work together to get an application processed efficiently.

Finally, keep in mind that improving TTD is an ongoing process. It’s wise to measure your current TTD, set targets, and continuously refine your process. Solicit feedback from sales and customers on the credit application experience.

In today’s fast-moving B2B environment, time-to-decision on credit applications is a critical performance indicator for credit departments. A “good” TTD is no longer measured in weeks – for many leading firms it’s measured in days or hours. That said, speed must be balanced with prudence. Through smart use of automation, data, and clear policies, companies can trim decision times without opening the floodgates to risk. By adopting some of the strategies above – from digital applications to automated scoring – credit managers can meet those expectations. The result is a win-win: an efficient credit department that acts as a business growth enabler while still managing risk rigorously.