B2B Buy Now, Pay Later (BNPL) is a payment option that allows businesses to purchase goods and services with the option to pay for the purchase over time. You may have heard of BNPL for consumer goods with providers such as Klarna, Afterpay, and Sezzle as well as Nigerian providers like Carbon, CDCare and Keza; with Trade by Duplo, the option is now available for business customers as well.
How does it work?
B2B BNPL provides businesses with a flexible payment financing option. It enables a business to purchase goods & services from another business without immediately paying the full amount at checkout.
This payment method is facilitated by a third-party provider who pays the merchant the total amount (often deducting a percentage-based facilitation charge). The buyer then has the option to repay the amount, along with interest, over a mutually agreed-upon period.
B2B BNPL provides a safety net for both the seller and the buyer due to the presence of a third-party provider. This payment option is particularly popular among retail customers who might not have the resources to make large purchases but is also attractive to mid-sized companies looking to manage their cash flow more efficiently.
Here’s how your business can benefit from employing BNPL as a payment method:
How BNPL can boost your business
Dependable Cash Flow
As a seller using B2B BNPL, you can get paid instantly by a provider instead of waiting weeks, sometimes months, for your customers to pay you. This way, your business can count on a constant inflow of revenue, without bearing any risk of late or default payments. This allows you to better manage your cash flow.
Mutual Business Growth
BNPL provides easier access to capital for you and your buyers. You get paid for goods delivered without delay, while your buyer receives goods with a payment plan that’s suitable for their sales cycle. With this in place, you can both expand your businesses, make future plans and projections, and even invest in new products or ventures, all thanks to improved cash flow.
Increased Sales Volumes
When you reduce the barrier to business financing, you give your buyers more purchasing power. They, in turn, will make more purchases from you, driving up your sales volume. Offering BNPL can also help you attract new customers who are looking for better repayment terms.
Improve Customer Loyalty
This is usually the most noticeable effect of B2B BNPL. Customers who use BNPL are more likely to return to your business and make repeat purchases. Offering your customers a way to boost their business can help you drastically improve your customer loyalty.
Advantage over Competitors
Another instant win with B2B BNPL is that your business now has an advantage over competitors who don’t offer BNPL. New clients will always move toward the business that offers them the best terms and access to capital to accelerate their growth.. Any business that helps other businesses win at their ventures already has an edge.
Transferred Risk
With B2B BNPL, the task of verifying the eligibility and creditworthiness of your customers is managed by a third party. You can now focus on fulfilling orders as soon as possible, without worrying about the associated risks..
Getting Started
What do you need to offer Buy Now Pay Later to your customers?
- Choose a provider: There are many BNPL providers to choose from. We recommend Trade by Duplo. Make sure your BNPL provider offers the right features for your business.
- Promote BNPL to your clients: Let your clients know that you offer BNPL. You can do this by adding your BNPL provider’s logo to your website and marketing materials, or by running special promotions. This also includes educating your business partners. Some people may not be familiar with BNPL, so it’s important to explain to them how it works. You can do this by creating an FAQ page or by providing customer support staff with training on BNPL.
- Make it easy for them to use: The BNPL checkout process should be straightforward. Users should be able to apply for BNPL quickly and easily with a simple but effective KYC verification process, and they should be able to see the total cost of each purchase up front.
- Track your results. It’s essential to track your BNPL results so that you can see how it’s impacting your business. This includes tracking metrics such as sales, conversion rate, new customers and average order value.
Offering BNPL to your business customers can be a great way to scale your business. By following these tips, you can ensure that you’re offering BNPL in a way that is both effective and profitable.
Accessing BNPL on Trade by Duplo
Duplo offers Buy Now Pay Later to businesses to enable growth and scalability. The BNPL solution from Duplo manages everything from credit scoring and financing to payment processing and reminders.
This way eligible suppliers and retailers on your platform can get access to credit to automatically pay you for goods received while opting to pay Duplo at a selected repayment cycle.
Reach out to our team if you’re a manufacturer or wholesaler and looking for safer ways to offer credit to distributors within your supply chain.
