Buy Now Pay Later (BNPL) for business is simply another type of financial product that is offered to alleviate the stresses of cash flow challenges. BNPL enables you to get money into your pocket when your business payments are due while having the flexibility of paying it back over time.
You can also offer these payment options to your customers giving them the flexibility they need to easily pay their business invoices over 4 instalments while you get paid in full within 24 hours! Now your clients will have the cash flow they need to purchase business services and supplies without hesitation.
How does Buy Now Pay Later work?
Using BNPL financing for business allows you to pay business-to-business (B2B) transactions such as supplier invoices or orders upfront to the service provider, and pay off the remaining balance later in instalments. It’s just like consumer-merchant based transacting, but there’s a little more allowance on the table to distribute for large invoices.
Top 5 reasons why businesses use Buy Now Pay Later:
- Recruiting, training, and paying new staff in advance of them becoming dollar productive
- Funding production, inventory, and delivery costs to meet growing demand, in advance of being paid
- Moving and fitting out new or larger office, warehouse, or retail space to suit growing business needs
- Small businesses needed to creating more even cash flow
- Freelance or contract workers who need extra credit to smooth out their expenses.
With platforms like BizPay, you pay 25% of the cost and pay off the remaining amount in a series of agreed instalments with the ability to apply for payment extensions. Payments can also be deducted from your debit card, bank account, or credit card automatically.
Buy Now Pay Later Terms
Typically BNPL arrangements for consumer-merchant purchases often don't charge interest or fees. But they have a fixed repayment schedule, generally every couple of weeks. With BizPay’s B2B transaction instalments, there is up to a 4% fee on the initial transaction, but the benefit is that you have the allowance to extend your repayments up to 6 months.
Utilise BizPay to subvert the lengthy bank loan authorisation process that can cause your growing enterprises to miss out on the opportunities to source quality providers for services.
Written by BizPay
BizPay is a seamless technology platform that solves cash flow challenges associated with paying business invoices. The company was founded to help businesses grow better by enabling them to use top suppliers and professional service providers. Frictionless, transparent and affordable, innovative payment products allow businesses: to split bills into 4 easy instalments and/or receive full invoice payment in 24 hours to grow their businesses without being constrained by cash flow.