Buy Now Pay Later (BNPL) has revolutionised the way we buy products online. Not only that, it has done so in a way that benefits both parties. The merchant is paid in full immediately and without any concern of defaulted payments - the buyer is able to stagger their payments into a plan that works for them.
Now we’re seeing BNPL products that target businesses as well as consumers. It allows small business owners to delay payments on products that they need to operate. Buy now pay later for business has changed traditional economic business models forever.
BNPL for business works in a similar way to BNPL for consumers. It simply allows you as a buyer to receive the product you’re shopping for straight away, but the cost of that product is split up and spread out into payments over weeks, months, or even years if you prefer. BNPL is best thought of as a monthly bill, like a mobile phone payment.
Businesses no longer need to wait until they reach revenue milestones to take their next major leap or spend years struggling and filled with anxiety about meeting payroll on a month-to-month basis. Instead they’re able to plan for immediate opportunities to increase profits by relying on capital that’s accessible to them when it’s needed.
There are several variations of buy now pay later that currently exist but most are in the consumer-space. For businesses the options are often limited and unfortunately have strict repayment limitations such as fortnightly payments which may not be suited to how your business operates.
Buy Now Pay Later for business needs to be configured to your business needs in order to be most effective. The only way to do that is with a BNPL provider that can integrate with your data and focus on providing you with BNPL that works for your business.
The benefits for your business with BNPL are immediate. It’s an injection of capital that can be used at your convenience and discretion. New hires can be made, stock can be bought, product developed, or new locations opened.
No matter what way your business needs to grow to be successful you can now position a significant amount of money behind it. Rather than waiting months for a business loan from a bank or being stung by hidden fees, BNPL allows you to grow your business at your own pace and pick a repayment schedule that works for you.
As the money needs to be repaid in installments you’re able to spread out the cost and more importantly, you haven’t had to trade any equity in order to grow.
You’re also able to optimise for your cash flow. BNPL offers your business cash without increasing the load on your credit card and avoids you from having to take on a significant amount of credit in one block.
On top of these obvious benefits of being able to operate in a stress-free (or at least lower stress) environment thanks to the capital injection, repayment schedules that fit your business, and being able to retain ownership of your business; BNPL could also help improve your credit score. It might sound surprising given that most repayment products are thought of as having a negative effect on your credit, but if you stick to your repayment schedule and highlight your business as a responsible borrower then your credit score will go up.
BNPL is a step forward for responsible businesses that are looking for innovative ways to finance fast and move at the speed of the market rather than be held back by banks.
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