How Does ‘Buy Now Pay Later’ Work In B2B Transactions?

Buy Now Pay Later (BNPL) solutions have been successful in capturing the interest of consumers and brands in the B2C space. It is predicted that B2B transactions will also pivot to this new mode as it offers several benefits for the seller as well as the buyer. Lately, B2B buyers have shown a marked preference for short-term financing options to enhance their business growth. This is paving the way for the quick adoption of Buy Now Pay Later solutions in the B2B space.  Businesses can now get instant credit and short-term financing from companies like KredX as they offer Buy Now Pay Later for B2B transactions. By being associated with KredX Pay Later, businesses can aim for exponential growth, by doubling sales and growing their customer base.

Earlier, businesses were dependent on traditional financing methods such as bank loans. Low approval rates and a lengthy application process has always been a hindrance while applying for a bank loan. With KredX Pay Later, businesses can avail quick short-term financing through a seamless digital process. 

A Quick Overview of BNPL Solutions in B2B

KredX Pay Later is a closed-loop channel financing solution that helps business buyers purchase goods hassle-free with a flexible repayment window. While the buyer gets instant credit, the seller is paid in full from KredX once the buyer opts for the KredX Pay Later option at the checkout. The buyer can make the repayment over the period of 15-90 days, based on the creditworthiness of the buyer and the size of the business. 

Know how BNPL functions in B2B transactions

The B2B transactions are much more complicated than the B2C transactions in nature. The journey from initiating a transaction to completing one is seamless in the B2C space, whereas it is slightly cumbersome in the B2B space. Therefore, BNPL solutions such as KredX Pay Later, act as a game-changer for B2B payments.

Businesses face multiple challenges in terms of B2B transactions and at the same time, they are hesitant to avail for short-term financing options such as the BNPL solution, probably because of a preconceived notion that accessing instant credit might be a lengthy process.

Another challenge faced by the businesses as well as the BNPL solution provider is the risk involved in B2B credit. Reliability is an issue for the business buyer and creditworthiness is an issue for the BNPL solution provider. 

B2B merchant transactions are surrounded with various challenges but the closed-loop channel financing solution, KredX Pay Later, provides a perpetual resolution to the buyers and enables them to access instant credit with no risk and a seamless integrated process. Therefore, by filling the necessary gaps, KredX Pay Later makes it possible to tackle all the challenges with ease.

Advantages of BNPL for B2B merchants 

• Increase Average Sales

KredX Pay Later allows the brands or enterprises to increase their average sales per customer by up to 40% by helping them provide their buyers with flexible credit options, making it easier for the buyer to purchase goods regularly.

• Improve Cart Conversion Rate

B2B transactions face a high cart abandonment rate. With instant credit provided through a BNPL solution such as KredX Pay Later, the buyer gets a suitable option that mostly leads to decrease in cart abandonment. Hence, there is an improved cart conversion rate for the brands or enterprises.

• Quick And Digital Process

For a B2B merchant to include a pay later option at the checkout, a complicated or lengthy process is not required. With KredX Pay Later, the merchant can quickly get on-boarded through a seamless digital process and provide its customers with an easy payment option.

Advantages of BNPL for B2B Buyers

• Solve Working Capital Challenges

As the brand gets paid at the point of sale by the BNPL solution provider, the buyer gets access to unlocked working capital because of the easy instant credit. The buyer can make the repayment according to the allocated credit period and avail the pay later solution again while purchasing. 

• Improve Credit Score

Business buyers who are able to utilise the instant working capital well, can make profits out of the goods purchased and therefore, can make an early repayment which leads to an improved credit score, building their creditworthiness.

• End Of Waiting

B2B buyers have to go through plenty of cumbersome procedures to avail credit facilities. With the KredX Pay Later solution, they get smoothly on-boarded after going through an eligibility check and they can start using the KredX Pay Later option at the click of a button.

Conclusion

Even though the BNPL solution is a well established phenomenon in the B2C space, it is growing at a rapid pace in the B2B space. With new players actively taking part, B2B transactions are going through a period of revolution and BNPL providers such as KredX, are changing the game through their product, KredX Pay Later. It is beneficial for the buyers as well as for the sellers making it an ideal option to avail while purchasing goods and services.