Buy now, pay later seems to be everywhere in the consumer market. PYMNTS research indicates that BNPL usage will more than double between 2020 and 2021, and Marqeta found that 61% of buyers would use this payment method for all their holiday shopping. However, this phenomenon isn’t just for individual consumers. Buy now, pay later for business is gaining prominence as well.
Why is the B2B space tapping into buy now, pay later financing? Many companies need equipment but have limited cash flow. With buy now, pay later financing, businesses can secure what they need when they need it. Plus, many people have been using BNPL in their personal lives, so they feel more comfortable trying it at their companies.
You may find it difficult to envision how this payment method could help your small business. That’s understandable, given that buy now, pay later financing is more prominent in consumer markets. To give you a better idea of how it can work as a B2B payment plan, consider these four advantages:
1. Limit strains on your cash flow.
It may not be feasible for you to pay for new or used equipment immediately, especially if most of your incoming dollars have already been accounted for. With buy now, pay later services, you can better control when you spend your money. Instead of paying immediately, you can plan to make smaller installments starting after the sale date. This allows you to use the equipment to increase cash flow, which means it essentially pays for itself.
2. Avoid overloading other financing vehicles.
Do you want to keep your bank line untouched? Would you rather not max out your business credit card? BNPL is a financing source separate from your other lines of financing. You can get the equipment you need without worrying about using all your available credit.
3. Explore customized payment plans.
Would it be better for your business if you could get equipment and make minimum payments for the first six months? Or would you prefer a purchase option where you pay later based on seasonal fluctuations? There are plenty of B2B payment plans available with BNPL financing. You might be surprised at how flexible sellers and their partner lenders can be.
4. Enjoy a seamless buying experience.
Many BNPL system portals are available online. You can check out your purchases, set up automatic payments, and download data for internal reporting. It never hurts to ask about the buy now, pay later options that sellers provide.
Many small businesses are in recovery mode after spending nearly two years dealing with global economic fluctuations. However, most decision-makers know that they need to have the right tools for the job to generate revenue. Buy now, pay later services provide an innovative, safe financial bridge for companies that are ready to move forward.
Is your company interested in BNPL services for an upcoming purchase? Talk to a Marlin representative today!