Buy Now Pay Later (BNPL) is an easy, secure and hassle-free payment alternative that gives you a free credit term for all your needs with no hidden fees. It is exactly what it sounds like it's a payment option that allows you to purchase the goods you want and pay for them over a while. Buy Now Pay Later companies make money by charging a commission on sales from the merchants. It is an easy way to ease cash flow and helps increase business profitability. Besides, it paves the way for more traffic. Lately, Buy Now Pay Later has emerged as a popular B2B payment among e-commerce industry.
Buy Now Pay Later: The Details
Buy Now Pay Later is a fast and reliable payment option that allows you to purchase now and pay within 30-day with an option to extend to a 60/90-day term with a minimal fee. There is no interest charged if paid within 30 days whereas failing in payment of credit card on the due date will result in poor credit score. Moreover, it frees up your working capital to keep the business running smoothly whereas cash and debit cards use up your working capital.
Buy Now Pay Later: Broken down step by step
Before we jump into the steps of the process, let’s define a few terms:
Buyer: A person who makes a purchase of goods either online or offline.
Seller: A platform/person who sells goods to buyers.
Lender: An individual/organization who lends money to buyers.
Step 1: Product Selection
The buyer selects the items and adds them to the shopping cart. At the checkout, select “Finaxar Pay” as the payment option and purchases are made with a one-click button with one-time approval only. It is always worth checking Buy Now Pay Later requirements and eligibility before you apply to avoid inconvenience. If the order is placed offline, the seller sends the order to the lender for authorization. Upon approval, the goods are arranged and shipped.
Step 2: Buyer Checkout
A new buyer will have to submit an online application with minimal documents. Also, it requires a one-time credit assessment usually done within 24 hours. For the existing buyer, enter user credential for subsequent purchases with approval required. The buyer will receive a 30-day net term and checkout will be completed.
Step 3: Payment
The supplier ships the product to the buyer. Upon delivery of the product, the lender will deposit invoice amount minus transaction fee to the supplier within 48 hours. Then, the lender will contact the buyer for payment information and collect the full invoice amount on a net 30-day term.
Buy Now Pay Later: Should You Apply?
Buy Now Pay Later gives you the freedom to purchase goods you want and pay within a specific period of time with no interest. You’re at odds as long as you pay back in time. Before choosing a Buy Now Pay Later option, you must know the interest charged when you pay late, terms and conditions, risk and its impact on your overall business.
Buy Now Pay Later: Who It Works For
Businesses that use purchase order financing include:
- Online B2B e-commerce platforms who can provide Buy Now Pay Later service to their buyers to increase sales and traffic.
- Wholesalers who want to purchase high priced items in bulk.
- Business owners can drive more customers if the credit term is given for a specified period of time.
- Retailers can benefit from this service as it increases repeated customers.
- Savvy consumers who don't want to pay interest can opt for the Buy Now Pay Later option to defer the payment while maintaining the ease of the business intact.
- It would help B2B direct sellers to boost the transaction value considerably by giving the ‘Buy Now Pay Later’ option to the buyers.
- Businesses with tight cash flow and have a need to purchase materials before fulfilling orders.
For example, business owners get upfront payments which mean cash flow isn’t affected.
Why pay upfront for your purchase when you could buy now and pay later at your convenience? Finaxar Pay is an easy payment option that offers a 30-day free credit term to purchase what you need. All it takes 48 hours for approval and receiving of funds upon delivery. So, what is holding you back? Get started with Finaxar Pay right away.