Feb 25, 2023
What is the best B2B buy now pay later (BNPL) for business?
The concept of the B2B buy now pay later (BNPL) is relatively new in the B2B space. But for years, consumers have had the option to BNPL in the form of “net terms”.
With the growth of fintech solutions and the move to online purchases for B2Bs in almost every industry, BNPL is now a viable option and is changing the state of business. While the move to B2B BNPL was inevitable, the pandemic drove its growth substantially. The proven B2C market alongside a shift to B2B e-commerce substantially helped with buy-in from both buyers and sellers.
The best BNPL solution will give a business an easy way to manage cash flow. It offers its customers a seamless checkout with their credit option in place while ensuring the business gets paid for the transaction without having to wait.
E-commerce and B2B payments
The so-called “B2B BNPL” structure has been gaining popularity in recent years as a way for businesses to access the goods and services they need to grow and operate. However, net terms financing has excited for years. The term ‘B2B buy now pay later’ has only gained popularity more recently due to its consumer counterpart.
This type of financing allows businesses (buyers) to make purchases now and pay for them later, giving them more flexibility and control over their cash flow and payment methods. Adding this into the ecommerce space makes checkout for sellers of those goods and services more efficient.
One of the key benefits for buyers of a business is avoiding taking on debt. Traditional forms of invoice financing, such as loans, credit cards, or lines of credit, can be difficult to obtain, and they often come with high-interest rates. Most startups and many small businesses just won’t qualify. B2B BNPL, on the other hand, allows businesses to make purchases without incurring debt at the start since they can pay later.
Another benefit for buyers using B2B BNPL is that it can help them access the goods and services needed to grow in the moment and operate. Many businesses need to make large purchases, such as equipment or inventory, in order to expand or maintain their operations. B2B BNPL allows these businesses to make these purchases without having to come up with the entire payment up front.
For the seller: B2B buy now pay later increases AOV and decreases cart abandonment
On the seller side, business-to-business wholesale BNPL has so many advantages. Because the B2B BNPL business handles the payment options and payment terms with the B2B buyer, much of the accounting load is removed.
For a seller, while traditional accounts receivables methods are time-consuming, labor-intensive, and lead to chasing bad debt, a BNPL solution allows businesses to offer their customers real-time payment solutions on B2B marketplaces without putting their own cash flow at risk.
Because of the instant credit from BNPL (without the debt implications), customers complete transactions with higher average order values, are less likely to abandon carts and are more likely to become repeat customers. In fact, companies like Elston Materials experienced an increase in sales from working with B2B BNPL companies, like Resolve!
For SMBs, buy now pay later can be a game changer.
Whether it’s a business in New York City or in rural Minnesota, SMBs are constantly facing demands of supply chain issues, suppliers who ask for payment upfront, lack of staff or know-how for new customer onboarding, and meeting numerous requests that come from LinkedIn messages to lenders.
Being able to offer BNPL solutions to their customers is a game changer that can solve cash flow problems, decrease the challenges of offering financing options to customers, and increase B2B transactions that don’t require extensive A/R investment. Note: B2B BNPL is not for everybody and you should assess whether BNPL is the right option for your customers.
One company offering a variety of BNPL solutions for B2B vendors is Resolve. Tern Bicycles began working with Resolve because they needed a solution for selling their e-bikes to retail shops. Resolve set them up with net terms solutions so their customers could enjoy the BNPL experience. AOV went up 30-40%, buyer purchasing power doubled, and the Resolve solution saved them the time of one full-time team member.
How does BNPL work for ecommerce?
Like all of the best solutions, BNPL must be easy to understand and use. Once a company has found the right BNPL provider for their business and integrated it into their platform, the rest is relatively easy for both sides.
First, the buyer conducts their shopping on the ecommerce website, like DocShop Pro. When they’re ready, they head to checkout. The BNPL option is offered with the other payment options. The buyer selects BNPL, inputs their information, and determines what payment options they want. (Usually 30 or 60 days, or in equal installments.)
The BNPL provider pays the seller right away, and the goods are delivered to the buyer (customer). The customer makes their payment to the BNPL using their agreed-upon terms. It’s really that easy.
So, what are the best BNPL solutions?
Some of the more popular best BNPL software solutions that exist:
Resolve Pay. Resolve offers B2B financing solutions that help businesses such as manufacturers, distributors and marketplaces manage their cash flow and working capital. Resolve provides competitive rates, reliable and fast credit checking, credit decisioning, cash advances, B2B payments, and several integrations such as QuickBooks Online, NetSuite, Magento, and more. ResolvePay.com's focus is on helping businesses better manage their cash flow, offer risk-free net terms, and improve their customer experience.
Balance, Credit Key, Apruve, Balance, BlueVine are other popular B2B BNPL solutions.
Overall, each of these B2B BNPL companies offers unique features and benefits to help businesses manage their cash flow and improve their customer experience. To learn more about the pros and cons of each B2B BNPL solution, please access The Best B2B Payments Solutions Guide.
In summary, what is the best B2B BNPL solution?
Each B2B BNPL company offers unique features and benefits to help companies manage cash flow, offer payment terms, and improve the buying experience. The best one for your business will really be dependent on your specific needs and priorities, so it’s important do your research and go through all the facts before making a decision. To learn why Resolve’s B2B payments and BNPL solution in best-in-class, see it in action.
