B2B BNPL (Buy Now, Pay Later) has unlocked tremendous growth potential for small businesses in India. The MSME sector has always struggled to get formal credit from banks. But increasing internet penetration into the semi-rural areas has opened up new opportunities for this sector.
The rise of fintech service providers and alternative payment options like BNPL has also improved the chances of success for smaller businesses. Moreover, business owners can build their credit scores with BNPL while using the facility for their daily operations.
KredX offers Pay Later financing solutions to distributors, dealers and retailers, helping businesses reach their full potential.
B2B BNPL is a short-term financing option offered to businesses at point-of-sale. The underlying concept of this financing model is that buyers receive the product, and B2B sellers receive the money instantly from the service provider.
Let us look at how B2B BNPL works:
It must be noted that a buyer can split the amount and choose a repayment tenure. Both these features have contributed to the popularity of B2B BNPL.
Users have often wondered about this alternative payment option’s impact on credit scores. Given below are crucial points regarding the relationship between BNPL and credit scores:
Listed below are key benefits of BNPL for smaller businesses and startups:
KredX is actively helping SMEs achieve financial inclusion in India with its Pay Later service. In addition to being a driver of growth for SMEs, Pay Later has also boosted the sales and revenue of suppliers and merchants offering this facility.
B2B BNPL is changing the finance sector in our country. If used prudently, it can build strong credit scores for people. Though it is for time to tell whether it will grow further or not, this financing option is promoting the dreams and aspirations of smaller businesses like never before.
Financial experts consider BNPL as an instalment loan as borrowers pay back the amount in instalments.
The B2B BNPL option is an entirely digitised transaction model. Moreover, the process is hassle-free and user-friendly.