Buy Now Pay Later (BNPL) for Business: Everything You Need to Know

The ‘buy now, pay later’ payment model has rapidly and firmly insinuated itself into everyday shopping experience online and in person, but what is BNPL and why are so many businesses adopting it?

Many small and medium sized businesses face challenges when it comes to financing, particularly when it comes to cash flow. BNPL solutions provide businesses the financial stability to pursue expansion opportunities as they emerge and focus on productivity. 

What is Buy Now Pay Later and how does it work?

A BNPL is a service run through providers like Opal that allow customers to pay for goods and services in manageable, interest-free installments rather than paying the whole amount due at the time of purchase. This isn’t just a solution for individual consumers — BNPL is becoming a mainstream payment method for B2B and B2C transactions alike. This allows SMEs to make purchases from suppliers which can be paid in monthly installments. As a result, businesses can better manage cash flow without navigating convoluted payment plans. This is further simplified when a business decides to streamline their BNPL system through one provider

How can BNPL benefit your business?

Alongside better cash flow, buy now, pay later schemes offer lucrative financing solutions for SMEs. Because the BNPL loans are typically smaller, there is a higher approval rate than other loan products. For businesses who are constantly rejected for loans, a BNPL may be the solution. These providers typically introduce lower hurdle requirements for applicants looking to borrow smaller amounts. Loans up to $100,000 are often pre-approved which allows SMEs to invest in growth strategies as opportunities emerge. A BNPL scheme offers businesses financial freedom and flexibility to expand their enterprise and take advantage of growth opportunities. 

When can you use BNPL? 

Singapore buy now pay later schemes are available to SMEs in limited but dynamic forms. From a B2B perspective, the BNPL format only works for payments made to 3rd party suppliers who have integrated at least one of the providers into their payment model. Financing will determine how the loans are used. Small businesses can also choose to use the BNPL schemes to make cross-border payments to international vendors. 

Some industries are more suitable for BNPL plans than others. Notably FMCG, healthcare, logistics, cleaning & maintenance and security services can all benefit from this stable transactional model. Some industries, however, offer conditions that are suboptimal for a BNPL; construction, commodity trading, marine & offshore and oil & gas are presently unsuitable. As this model becomes more widespread and lucrative, industries will adapt their present models to include BNPL systems. 

How long does it take for your BNPL application to be approved? 

One of the perks of buy now pay later is the rapid timeline for credit approval and set-up. Businesses that submit a credit assessment with all the correct documentation will often receive a confirmation within 48 hours and no later than 72 hours. If a business also requires drawdown approval, in some cases this can be completed by 7pm of the same day. This rapidly paced approval system means businesses can get the BNPL transaction system off the ground as soon as possible.

Support your business’ growth with Opal’s financing solutions

If you’ve decided that a BNPL is the right move for your business, consider partnering with Opal’s all-in-one banking and financial solutions platform and taking advantage of our ‘buy now, pay later’ transactional systems. Opal is a leading provider of end-to-end payment solutions, powered by robust proprietary banking-as-a-service platforms and fintech services. We are committed to helping SMEs accelerate business growth with flexible and comprehensive financial solutions. Get in touch today to discover how Opal’s BNPL and financing solutions can help accelerate your business.

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