B2B Buy Now Pay Later: The Complete Guide for Merchants [2026]

Modern business-to-business (B2B) financing options have evolved significantly in recent years, making it easier for companies to find the right solution for their needs. Resolve, a leader in B2B solutions, offers tailored net terms financing that aligns with the unique demands of today's businesses.

This guide takes a closer look at one of the newest financing models reshaping the B2B landscape: Buy Now Pay Later (BNPL). Traditionally a consumer-focused model, BNPL has now entered the B2B space, providing businesses with increased flexibility and improved cash flow management.

The numbers tell the story. According to Juniper Research, B2B BNPL transactions reached $14 billion in 2023, with adoption expected to grow at a 27.4% CAGR between 2024 and 2029. By 2029, B2B BNPL gross merchandise value is projected to hit $669.5 billion. The shift toward deferred payment in B2B isn't a trend—it's a structural change in how businesses buy and sell.

BNPL in B2B is helping companies bridge payment gaps and maintain working capital without the burden of traditional financing options. This model allows businesses to secure the goods or services they need immediately, while spreading payments over time. As the B2B market continues to evolve, BNPL offers a competitive edge, allowing businesses to better manage their cash flow, improve supplier relationships, and enhance their purchasing power—all without the complexities of traditional credit arrangements.

Key Takeaways

• B2B BNPL is booming: Transactions hit $14 billion in 2023 and are projected to reach $669.5 billion by 2029 (Juniper Research, Research and Markets).
• It's not consumer BNPL: B2B deals involve $50K–$1M+ orders, 30–90 day terms, and multi-stakeholder approvals—far more complex than splitting a $200 purchase into four payments.
• Merchants get paid upfront: Unlike self-managed net terms, B2B BNPL providers advance cash immediately and assume the credit risk.
• Conversion impact is real: Merchants offering flexible payment terms report 20–40% higher conversion rates.
• It replaces the pain of trade credit: No more chasing invoices, absorbing bad debt, or tying up working capital for 60–90 days.

What Is B2B BNPL?

B2B BNPL, short for Business-to-Business Buy Now Pay Later, allows businesses to purchase goods or services today and pay later. This model is especially beneficial for companies looking to manage cash flow more effectively, invest in growth opportunities, or navigate seasonal fluctuations.

B2B BNPL often involves larger sums, longer payment terms, and more intricate agreements than consumer models. Businesses can purchase what they need without immediate financial strain, while suppliers enjoy closing sales and predictable cash flow.

B2B vs. B2C BNPL: Key Differences

While BNPL has become a household name in consumer shopping (think Klarna, Afterpay, and Affirm), the B2B version operates in an entirely different arena. Understanding these differences is critical for merchants evaluating BNPL as a payment option.

Transaction Size and Complexity

Consumer BNPL typically covers purchases from $50 to $5,000. B2B BNPL handles transactions that routinely reach $50,000 and can exceed $1 million. McKinsey's 2024 B2B Pulse Survey shows that 73% of B2B buyers are now comfortable spending $50,000+ in a single online transaction, and 20% are willing to place orders exceeding $1 million digitally.

Payment Terms

B2C BNPL splits a purchase into four payments over four to six weeks. B2B BNPL mirrors traditional trade credit, offering Net 30/60/90 terms—the extended terms businesses require for their own cash flow cycles.

Credit Assessment

Consumer BNPL providers run a soft credit check on an individual. B2B BNPL requires evaluating business creditworthiness—credit scores, trade references, financial statements, and payment histories. Providers like Resolve streamline this with automated business credit checks.

Decision-Making and Relationships

A consumer makes a BNPL decision in seconds. In B2B, procurement teams, finance departments, and operations leaders all weigh in. McKinsey's 2024 B2B Pulse Survey confirms that B2B buyers now use an average of 10.2 channels in their buying journey, up from five in 2016. And unlike one-time B2C purchases, B2B relationships are long-term partnerships where flexible net terms directly impact retention and lifetime value.

How Does Buy Now Pay Later Work for B2B?

B2B BNPL operates as a credit system designed for businesses. The process begins with a credit assessment, where a provider evaluates a business's creditworthiness and determines credit limits and terms.

Once approved, a business can make purchases while deferring payment, typically for 30 or 60 days post-invoice. Providers like Resolve often assume the credit risk through non-recourse financing—meaning the burden of non-payment falls on the provider, not the seller, significantly reducing financial risk.

The result: buyers get flexible payment terms and security, sellers get faster sales cycles with less credit risk, and business relationships strengthen through a more dynamic exchange of goods and services.

B2B BNPL vs. Traditional Trade Credit

If your business already offers trade credit in-house, you might be wondering how B2B BNPL is any different. The short answer: it solves the biggest headaches that come with managing credit internally.

Traditional trade credit—where a supplier extends Net 30/60 terms directly to buyers—puts the full credit risk, admin burden, and collections responsibility on the merchant. The numbers aren't encouraging: 52.3% of wholesale companies identify late payments as their main cash flow challenge, and approximately half of all B2B invoices in the Americas are overdue.

B2B BNPL flips this model. Here's how:

• Speed of approval: Traditional trade credit can take days or weeks to set up. B2B BNPL providers use automated credit decisioning, often delivering approvals in minutes or hours.
• Credit risk transfer: With traditional trade credit, your business absorbs the risk of non-payment. Bad debts average 8% of all B2B credit sales in the United States. B2B BNPL providers like Resolve offer non-recourse financing, meaning they assume the credit risk—not you.
• Cash flow impact: When you extend trade credit yourself, you wait 30, 60, or 90 days for payment. With B2B BNPL, providers advance cash to the merchant upfront (Resolve offers up to 100% cash advances), while the buyer still gets their deferred payment terms.
• Administrative burden: Managing credit in-house requires dedicated staff for credit checks, invoicing, collections, and dispute resolution. B2B BNPL automates net terms management, freeing your team to focus on growth.

In short, B2B BNPL gives your buyers the same flexible payment experience as traditional trade credit—but without tying up your working capital or exposing your business to credit losses.

BNPL vs. Net Terms vs. Invoice Factoring: A Comparison

Merchants exploring B2B financing options often find themselves comparing three models: BNPL, net terms, and invoice factoring. Each serves a different purpose, and the right choice depends on your business priorities.

B2B BNPL

The BNPL provider extends credit to your buyer, pays you upfront (or near-upfront), and collects from the buyer on the agreed terms. The provider assumes the credit risk. For the buyer, it feels like getting standard net terms. For the seller, it means immediate cash and no collections headaches.

Self-Managed Net Terms

You extend payment terms directly to your buyer—Net 30, Net 60, or Net 90—and handle everything in-house: credit checks, invoicing, follow-ups, and collections. You wait for the buyer to pay before you see revenue. The upside is full control. The downside is full risk—and the operational cost of managing it all.

Invoice Factoring

You sell your outstanding invoices to a factoring company at a discount (typically receiving 70–95% of invoice value upfront). The factoring company collects from your customer. Factoring fees range from 0.5% to 5% per month, and some arrangements involve the factor interacting directly with your customers—which can affect the relationship.

For a deeper dive into factoring alternatives, see our guide on AR financing or our factoring alternatives guide.

What Is the Difference Between BNPL and a Credit Card?

Understanding the distinctions between Buy Now Pay Later (BNPL) and traditional credit options like credit cards and loans is crucial for businesses considering their financing choices.

• Credit cards offer a revolving line of credit with a set limit. Interest accrues on unpaid balances monthly. They provide flexibility but can lead to high-interest costs if balances aren't paid in full.
• BNPL is a transaction-specific arrangement allowing businesses to defer payment, usually without interest. It's particularly useful for larger purchases, offering a more straightforward and cost-effective option than credit cards.
• Loans involve borrowing a fixed sum with interest over a predetermined repayment period. They suit long-term financing needs and come with a more complex approval process than BNPL.

Each option has unique benefits and considerations, so choose the option that best aligns with your financial strategy and purchase needs.

Advantages of BNPL

The Buy Now Pay Later (BNPL) model has rapidly gained popularity, benefiting both businesses and consumers. Here's why BNPL adoption is accelerating across B2B—merchants offering BNPL or flexible payment terms report conversion rate increases of 20–40%, and e-merchants offering credit financing see a 60% average increase in customer orders.

Benefits for Buyers

• Improved Cash Flow Management: BNPL allows businesses to manage their finances more effectively via deferred payments—keeping working capital available for operations and growth.
• Enhanced Purchasing Power: BNPL solutions empower businesses with greater purchasing power, which is especially beneficial for small and medium-sized businesses facing capital constraints.
• Convenience and Accessibility: BNPL offers a quicker and less cumbersome way to acquire goods or services, making it an attractive option for businesses needing timely resources.
• Budget-Friendly: BNPL removes the immediate financial burden of upfront payments, leading to better financial planning and control.
• No or Low-Interest Financing: Many arrangements benefit from no or low-interest rates for the deferral period, making it a cost-effective alternative to credit cards or traditional loans.
• Strengthened Supplier Relationships: Buyers can build stronger relationships with suppliers via timely BNPL payments.

Benefits for Merchants

• Increased Sales: BNPL attracts a broader customer base, potentially leading to larger orders and higher sales. With 95% of B2B customers preferring to pay on invoice—yet fewer than 10% of merchants equipped to offer credit—there's a massive opportunity gap.
• Improved Cash Flow: Providers like Resolve offer 100% cash advances, ensuring immediate capital access for merchants.
• Customer Loyalty: Flexible payment options foster trust and loyalty, translating into repeat business and long-term relationships.
• Competitive Advantage: Offering BNPL differentiates merchants from competitors and aligns your brand with modern payment preferences. Two-thirds of B2B buyers now prefer digital or remote engagement over in-person interactions, and flexible digital payment options are a key part of that expectation.
• Risk Mitigation: With BNPL, the credit risk often shifts to the provider, allowing merchants to focus on their core business without credit-related concerns.

Decision-Maker Complexity: Why B2B BNPL Matters More Than You Think

In B2C, one person clicks "buy" and the transaction is done. In B2B, a single purchase can involve three to ten stakeholders across procurement, finance, operations, and leadership—each with different priorities.

This complexity creates friction. McKinsey's 2024 B2B Pulse Survey found that 54% of B2B decision makers would abandon a purchase or switch suppliers due to a poor omnichannel experience. When payment is clunky, manual, or inflexible, it becomes a bottleneck.

B2B BNPL addresses this by providing a transparent, professional payment process that satisfies multiple stakeholders simultaneously. Finance appreciates clear terms and predictable cash outflows. Procurement values fast approvals. And leadership appreciates acquiring what the company needs without straining working capital.

For merchants, this means fewer abandoned carts, shorter sales cycles, and higher close rates—especially for large orders where payment flexibility is the deciding factor.

Should You Incorporate B2B BNPL Solutions into Your Offerings?

Integrating Buy Now Pay Later solutions into your business hinges on your objectives and customer needs. If your goal is to expand your customer base, enhance cash flow, and stay competitive, BNPL is a strategic addition—especially given that e-commerce has become the top revenue channel for B2B, dethroning in-person sales.

How to Know If B2B BNPL Solutions Are Right for You

Assess your customer's purchasing patterns and payment preferences to determine if B2B BNPL solutions fit your business. If extended payment terms could accelerate your sales, or your industry favors flexibility, BNPL might be a good option.

Also, consider your cash flow needs. If upfront cash and mitigated credit risk are essential, a BNPL solution like Resolve's, which offers cash advances and handles credit risk, could align well with your business strategy.

How Can You Implement B2B BNPL Solutions?

The easiest way to integrate B2B BNPL into your operations is to work with dedicated professionals like Resolve. Their net terms, providing 30 or 60 days for payment, seamlessly integrate with your financial processes—offering deferred payment for buyers and improved liquidity for your business.

Resolve's non-recourse financing shifts repayment risk away from your business, and their 100% advanced cash payment guarantees upfront payment and bolsters financial stability.

Buy Now Pay Later solutions can elevate a business's cash flow and customer experience. Partnering with Resolve simplifies things, strengthening cash flow, customer relationships, and your financial foundation.

Frequently Asked Questions

What is B2B BNPL?

B2B Buy Now Pay Later is a financing model that lets businesses purchase goods or services immediately and defer payment—typically for 30, 60, or 90 days. Unlike consumer BNPL, B2B BNPL handles larger transaction sizes, longer payment windows, and more complex credit assessments tailored to business buyers.

How is B2B BNPL different from trade credit?

Traditional trade credit requires merchants to manage credit checks, assume non-payment risk, and wait 30–90 days for cash. With B2B BNPL, a third-party provider handles credit assessment, assumes the risk, and advances payment to the merchant upfront—while the buyer still gets deferred terms.

Does B2B BNPL increase sales?

Yes. Merchants offering BNPL or flexible payment terms report conversion rate increases of 20–40%. E-merchants offering credit financing see a 60% average increase in customer orders. With 95% of B2B buyers preferring to pay on invoice, offering deferred payment removes a major purchase barrier.

Who assumes the credit risk with B2B BNPL?

In most B2B BNPL arrangements, the provider assumes the credit risk through non-recourse financing. This means if the buyer fails to pay, the loss falls on the BNPL provider—not the merchant.

What's the difference between B2B BNPL and invoice factoring?

With B2B BNPL, the provider extends credit to your buyer at checkout and pays you upfront. With invoice factoring, you extend credit yourself and then sell the resulting invoice to a factoring company at a discount (typically 70–95% of face value). BNPL is proactive; factoring is reactive.

How do I implement B2B BNPL?

The easiest path is partnering with a dedicated provider like Resolve. Their platform integrates with your existing financial processes, automates credit decisions, offers non-recourse financing, and provides up to 100% cash advances on approved orders.