Furniture – it’s not just about the wood, marble, glass, metal, fabric. It’s really about the living and working experiences we have when we use it. And, B2B BNPL for the furniture industry helps facilitate the furniture trade so we can maximise and reach the potential of how we work and live.
Some figures about the furniture industry
According to Statista, online furniture sales should increase from just over 25% in 2023 to over about 40% in 2028. And, the furniture market in Europe is projected to have a steady annual growth rate of 2.26% (CAGR 2024-2029).
According to Technavio, the office furniture market is set to do very well, predicting worldwide growth of 6.15 % (CAGR 2023-2028). There are home office and traditional office opportunities. A focus on health and safety leads to more desirable ergonomic options, too. And, productivity ambitions mean office furniture with smart tech and connectivity features are also sought after.
They also say the main challenges are: (1) volatile raw material costs and (2) rising production costs: ‘The increasing production costs have narrowed the gap between manufacturers’ expenses and their ability to raise product prices, negatively impacting profit margins.’
Key benefits of B2B BNPL (Buy Now, Pay Later) for furniture businesses in Europe
Improved sales
Offering a B2B buy and pay later solution can attract more customers by offering deferred payment terms that the furniture manufacturer may otherwise not be able to offer. Make it part of your sales strategy for customer acquisition and retention.
Cash flow management
Manufacturers, wholesalers, and retailers can manage their cash flow better by either being paid upfront or having flexibility for when they pay.
Increased order size
Retailers might place larger orders due to decreased immediate stress on cash flow.
Reduced immediate financial strain
Buyers don’t need to pay upfront. But, sellers and marketplaces get paid upfront. This win-win combination eases financial pressures on both sides of a deal.
Enhanced customer loyalty
Flexible payment options can lead to increased loyalty and repeat business. Let’s be realistic – customer lifetime value (CLV) is the key to a successful B2B operation so nurturing CLV via supportive payment conditions can be a real winner.
Flexibility and speed
BNPL typically offers more flexible terms than traditional trade credit and assesses risk and provides payment to sellers much faster than, for example, traditional bank loans. And, unlike factoring, you don’t have to raid your accounts receivables at a discount!
Credit checks and risk assessment
A good B2B BNPL provider will leverage AI and machine learning technology to assess risk and creditworthiness, in addition to financial data and credit history to assess risk. The weight and burden of assessing a buyer’s credit falls on the BNPL service rather than the seller or marketplace.
Integration with ecommerce and marketplaces
Just as comfy as sitting on your favourite sofa or armchair, a good BNPL option integrates easily into online sales platforms, be it a marketplace or a company’s own ecommerce. Ideally, the buy and pay later service will have a fully embedded tool that integrates seamlessly into the marketplace or ecommerce, but also has a self-service tool allowing manual payments generation or testing of the service.
Competitive edge
All of the above result in differentiating a business from its competitors.
Terms.Tech delivers B2B BNPL for furniture industry companies
Don’t be a couch potato! Be proactive and have Terms.Tech’s Buy Now, Pay Later solution provide B2B payment terms up to 120 days to your customers! Give your customers the flexibility and cash flow they need while growing your own business!
Get in touch today to find out how our B2B BNPL solution can help your business succeed.
