Companies constantly seek innovative ways to do better business. Improve cash flow. Manage expenses. Streamline operations. Attract new customers. Keep current customers. The wishlist goes on and on!
Buy Now, Pay Later (BNPL) is one such solution making significant inroads in recent years. Having become popular for in the B2C market, BNPL payment options for B2B are now taking off.
What are the top 5 key B2B BNPL benefits?
B2B BNPL offers numerous benefits B2B merchants and marketplaces, including:
- improved cash flow management
- increased sales and conversion rates
- enhanced customer satisfaction and loyalty
- streamlined purchasing process
- reduced financial risk.
Improved cash flow management
Enhanced cash flow management is one of the most significant advantages. Buy Now, Pay Later enables buyers to enjoy immediate access to the products or services they need without having to pay anything or the full amount upfront.
Payment flexibility allows companies to preserve their working capital. They can allocate funds to other critical areas of their operations. By spreading out payments over fixed periods like 60 or 90 days (or with installments), businesses can better manage cash flow and optimise resources for growth and operational needs.
We admit that this aspect of Buy Now, Pay Later doesn’t sound much different than how many businesses traditionally buy on credit with payment terms – yet.
But for the seller, there’s a big difference to the traditional credit and financing net terms approach. The seller offers the buyer what they want, but doesn’t have to wait for the payment.
Why? The BNPL provider pays the seller upfront – cash flow injection! Interest and/or fees are applied, and these are absorbed by the seller or passed on to the buyer.
When the customer makes the choice to use Buy Now, Pay Later financing, the seller’s DSO decreases and doesn’t worry about late payments. And, can immediately use the incoming money to cover costs of purchases they need to fulfil other orders, or pay off debt or previous loans.
More about improved cash flow and deferred payments here.
Increased sales
BNPL users effectively boost their B2B sales and conversion rates by offering the option to buy now and pay later, merchants and marketplaces. Small and medium-sized enterprises (SMEs) may face budget constraints limiting their purchasing power. Buy Now, Pay Later users gain the opportunity to overcome their financial hurdles.
Buy Now, Pay Later encourages customers to make large purchases and higher value purchases. Immediate buying decisions become a reality. In other words, it’s a game changer: BNPL services help SMEs to level the playing field when it comes to financing, purchasing, and modernising their payment method.
Being able to pay later encourages more B2B buyers to convert, i.e less cart abandonment with online sales. This leads to increased sales for the seller. But, it’s not just about big purchases and more of them. Buy Now, Pay Later’s convenience and flexibility also attracts new customers who may otherwise hesitate to commit.
More about increased sales from flexible payments here.
Enhanced customer satisfaction and loyalty
Building strong customer relationships is crucial for long-term success. Merchants and marketplaces enhance customer satisfaction and foster loyalty from their BNPL users. They demonstrate an understanding of their customers’ needs and foster a positive brand image in the market.
B2B buyers appreciate the flexibility and convenience of payment options that defer and/or spread out fixed payments. New customers get an immediate credit check, and with good credit are on their way with their new financing service!
A customer-centric approach not only increases satisfaction but also increases customer lifetime value. Stable trading partners over years and years are the most valuable partners a business can have.
Streamlined purchase process
Traditional B2B payment methods, such as invoicing with payment terms or using bank loans, often involve lengthy approval processes. Slow credit checks. Old-fashioned credit scores. Mountains of paperwork. Chasing down late fees or payments…
Cumbersome payment processes negatively impact efficiency and create potential loss of business. However, digital BNPL services speed up, simplify, and automate the credit and purchasing processes. Each provider will have its own method and algorithms to determine credit score.
Online sales are easier because B2B buyers quickly and easily choose a payment plan at checkout, eliminating the need for complex administrative procedures. Even for large purchases. The result is faster order fulfilment and accelerating business operations.
Reduced financial risk
For B2B sellers, late payment or non-payment risks have been a significant concern. How can implementing a BNPL solution mitigate this risk? By transferring the responsibility of checking credit scores and payment or debt collection to the third-party BNPL lender.
Terms.Tech, for example, assumes the risk associated with financing and payment. This payment service allows businesses to focus on their core operations without worrying about financial losses. Borrowers faces predictable fees and/or interest.
Where a consumer loves getting reward points, credit card benefits, or cash back, a B2B merchant wants to decrease risk. Buy Now, Pay Later lowers their risk because they receive payment right into their bank account as soon as they’ve shipped the goods.
B2B Buy Now, Pay Later is a winning payment method
Truly European
Which Buy Now, Pay Later service can you use anywhere in Europe? Terms.Tech is truly pan-European – based in Belgium, but licensed to operate in all of the EEA and Switzerland. Cross-border trade becomes much smoother with a Terms.Tech’s online integration or offline solution.
How quickly can Buy Now, Pay Later be set up and paid?
Terms.Tech’s onboarding process is really fast, safe, and efficient. Do business without painful delays like bank loans. Additionally, your developers will get a well-deserved break. Terms.Tech is remarkably easy to integrate into your existing platform.
Does Terms.Tech do white labelling?
Want to keep your branding? Great! We enable white labelling so Terms.Tech helps you make the Buy Now, Pay Later experience completely “you”!
Are B2B BNPL services right for your company?
Merchants and marketplaces – get paid the full purchase amount upfront.
🤝 Interested? Why wait to find out more? Get in touch with our Terms.Tech experts to find out what the best payments solution is for your company.
