Boost Your Festive Season Sales With BNPL Solution
The festive season is knocking at the door.
This comes as an opportunity for businesses to boost their sales and overall earnings. However, often small businesses fail to tap into the massive opportunity to increase their seasonal sales due to cash crisis and soaring demand for credit purchases.
To elaborate, the surge in seasonal demand requires additional raw material, involvement of more labour, and a wider distribution network. Collectively, these require added funding to cater to the hike in demand.
Indeed, the availability of additional funding sources is a concern among many businesses. On top of that, the concept of selling products on credit adds pressure on entrepreneurs.
Fortunately, with the ‘BUY NOW PAY LATER’ (BNPL)’ solution, entrepreneurs can now have a way out to cater to festive demands and provide goods on credit without straining their existing cash flow.
Read along to find out how this rapidly emerging financing arrangement can work out for you!
Buy Now Pay Later – The Concept In Brief
In essence, BNPL is a system that enables consumers to buy products on credit and repay their prices later and in intervals.
In other words, such an arrangement will allow your consumers to pay for their purchases over time. Indeed, this arrangement is pro-customer as they enjoy the advantage of an extended repayment period.
Generally, the credit period accompanying BPNL services can range from a month to 36 months. The same depends on an agreement shared between the two parties involved, i.e., the buyer and seller alongside transaction size.
Additionally, in this buy now pay later arrangement, the sanctioned credit amount is also dependent on the lender. This arrangement may seem similar to that of credit cards and their EMI payouts. However, in this system, there are no cards and credit checks involved.
Moreover, businesses do not necessarily levy interest on the credit to encourage more sales. In fact, some businesses may go ahead and allow repayment in EMIs or instalments that need to be paid either at a go or at regular intervals by an agreed date.
So, how does buy now pay later work?
Steps Involved In BNPL – A Brief Overview
When a business or a merchant collaborates with a BNPL finance provider such as MANDII to extend credit-oriented payouts to customers, these processes usually involve the following –
Step 1: Customers decide to purchase a product
Step 2: Concerned business offers BNPL as a payment option
Step 3: Repayment timeline and interest, if any are discussed
Step 4: Customer may pay a small amount at the time of purchase (if required)
Step 5: The transaction is completed successfully, and the BNPL platform settles the payment with the concerned business
Step 6: By the end of the agreed timeline, the customer clears the payment
In most cases, the BNPL entity conducts an e-KYC check on the customer’s credit background, income, and creditworthiness before extending the buy now pay later service. Through the course of the agreed timeline, the BNPL platform receives payment from customers, subsequently settling the funds with the concerned business.
Wondering how a BNPL platform benefits in this whole arrangement? The BNPL platform earns commission from the business on every transaction.
Top Reasons To Choose Buy Now Pay Later
Here’s why you need to consider integrating the BNPL regime into your business to make the most of this festive season –
- Helps Clear Inventory
Such a system allows businesses to clear their inventory and cater to the festive rush. At the same time, it allows ancillary businesses and consumers to purchase products without being worried about their cash availability.
- Digital Process
Businesses that choose to integrate BNPL facilities in their payment regime can easily do so digitally. Fintech companies such as MANDII now allow businesses to sign up for such a facility and benefit from its offerings without carrying out in-person formalities.
- Instant Sign Up
Most fintech companies facilitate a quick sign-up process, which can be completed in just a few steps. This helps businesses tap into the BNPL facility’s perks faster and helps their customers carry out bulk purchases with ease.
As BNPL Solution gains more traction in the business and e-commerce space, entrepreneurs now have a chance to move their inventory faster than ever. As an entrepreneur, you should get accustomed to the features of the BNPL Solution to benefit during most of the peak seasons.