Benefits of KredX Pay Later for Businesses and Merchants
As one of India’s largest supply chain platforms, KredX has managed to revitalise this country’s industrial sector by providing hassle-free working capital financing to a wide variety of businesses. The fintech service has been especially effective in highlighting how there are immense benefits of Buy Now Pay Later for businesses and merchants.
Business-to-business BNPL measure refers to a closed-loop digital financing solution for dealers, distributors, or retailers. In this model, buyers are able to purchase raw materials from sellers without paying a lump sum amount of money upfront. KredX works as a financial intermediary to ensure a seamless transaction.
Benefits Of Buy Now Pay Later For Business And Merchants
- KredX acts on behalf of buyers to provide the upfront payment charges of the total selling price to sellers. Meanwhile, buyers can opt to pay out the purchasing amount over time via instalments to KredX. This helps businesses, especially MSMEs, avoid hampering their balance sheets and investment plans due to low cash liquidity. So the BNPL model becomes a reliable means of cost-reduction through process optimisation.
- Alternatively, as the sellers receive an immediate payment after retailing a product, the B2B BNPL model ensures that the transaction cycle benefits both parties. So, with KredX, one is guaranteed to have a frictionless digitised sales process and enhanced user experience quality.
- Moreover, by providing BNPL alternatives, a business is able to become a more lucrative choice for its customers. Data shows that the average order value goes upswing for merchants who follow the B2B BNPL structure. Especially with KredX, the average sale per customer and cart conversion rate has gone up 40% and 30%, respectively.
- A comparatively lenient regulatory framework makes the documentation process easier for customers. The digital system also makes this process quick and easy to access. Moreover, an integrated API ensures there is no dropout at the point of sale.
- Relaxed eligibility criteria allow a wide variety of clients to opt for KredX Pay Later scheme. Traditional Blue Chip companies to micro, small and medium enterprises [MSME] can avail of this service to ensure a transparent fund disbursal.
- Businesses can pledge their unpaid invoices as risk-free assets to avail of short-term financing from KredX, as the company offers reliable accounts receivable financing.
- Furthermore, with KredX, the merchants are able to save the cost of debit and credit card processing fees. Referred to as the merchant discount rate, the businesses are usually charged around 1% to 3% fees to be able to accept the cards, as mentioned earlier.
While dealing with KredX, the merchants have the choice to either save up to 2% of this discount rate or spend it for the purposes of attracting new customers.
- Integrating the BNPL system also ensures increased brand loyalty in a company’s customer pool. As they can opt for flexible repayment methods to get the products they need, customers are guaranteed to have complete user satisfaction from the business’ services. So naturally, one witnesses a notable boost to the Customer Lifetime Value.
Bottom Line
The Buy Now Pay Later transaction model in India has recently received exponential momentum. According to experts, the Indian BNPL industry is likely to surge over ten-fold in the coming years. With the growing predominance of the e-commerce sector, BNPL is set to become a constant staple of the financial discourse of this country. As India’s leading integrated cash flow solutions provider, KredX has successfully utilised the BNPL model for business-to-business transactions. From ensuring an unrestrained cash flow to increasing the value proposition of the MSMEs, there are substantial benefits of Buy Now Pay Later for businesses and merchants.
