Seamless And Fluid Transaction Model
By KredX Pay Later

KredX has successfully established itself as a reliable fintech service offering blockchain-based economic solutions. Consequently, the company has emerged as the largest supply chain platform in India. Moreover, with the growing predominance of e-commerce sectors in the industrial market, the benefits of B2B Pay Later – KredX have been noticeable.

KredX works as an intermediary in this closed-loop short-term digital financing model. The company offers hassle-free working capital financing to business owners struggling with a restrained cash flow.

Thus, in this transaction model, the buyers can get the raw materials needed for their businesses without making a lump sum upfront payment. On the other hand, KredX, on behalf of these buyers, makes sure to pay out the upfront charges of the total selling price to the merchants. So, these buyers have the alternative to repay the purchasing amount in instalments to KredX over a decided period of time.

Importance Of KredX Pay Later In The Indian MSME Sector

The B2B BNPL model has effectively revitalised the financial sector, especially after the volatile conditions of the global market in the last few years. Notably, in India, the BNPL industry is projected to grow ten-fold over the coming years. So, this transaction model can be a crucial factor in ensuring an all-inclusive development of the MSME sector of this country.

Around 75 million Micro, Small & Medium Enterprises [MSME] are currently functioning in India, contributing to almost a third of the nation's GDP. However, most of these businesses have no access to formal credits.

Several digital payment models had been negligent to this funding gap created by this lack of credit. Institutional lenders often consider these businesses high-risk borrowers because they don't have enough capital or assets. The requirement of collateral in traditional financing is another obstacle for MSMEs.

Furthermore, the loan-approval process can be heavily time-consuming. This can adversely affect small businesses' balance sheets and future investment plans due to a lack of cash flow liquidity.

KredX Pay Later, alternatively, offers a short-term financing model that is beneficial for both the sellers and buyers in a B2B scheme. This credit-based solution ensures that brands and enterprises get paid upfront for the products they've sold. On the other hand, it allows the buyers to reduce costs through process optimisation. Moreover, they are provided immediate working capital by this fintech service with a flexible repayment structure.

Benefits Of B2B Pay Later – KredX

• A seamless and fluid transactional model allows brands and enterprises to better adapt to the market's changing demands. This way, they can further expand and diversify their product ranges according to customers’ needs.
• The flexible credit line and subscription models of a BNPL scheme make a business more lucrative for buyers. As a result, market experts have noted a significant rise in average order value for businesses following the B2B BNPL model. For example, with KredX, the average sale per customer and cart conversion rate increased 40% and 30%, respectively.
• With KredX Pay Later, buyers can save both time and money as it eliminates the necessity of a debit or credit card. In this transaction scheme, a borrower does not have to spend a hefty amount on an annual maintenance fee, cash advance or GST. Moreover, the cash-flow based metrics of the BNPL structure are time-efficient for the largely uncategorised sectors of this country's product market.
• Additionally, the BNPL model is cost-efficient in regards to missed payments too. The interest rate for BNPL usually remains in-between the scale of 0% to 24%. Whereas, the interest rate on missed payments can go up to 48% for credit cards.
• Compared to credit or debit cards, the benefits of B2B Pay Later – KredX are significant for merchants too. For example, with KredX, merchants can save the 1% to 3% credit card processing fee charges.
• As a decentralised lending protocol, the BNPL scheme has an effectively less rigid regulatory framework. So KredX Pay Later offers an easier documentation procedure to borrowers, with first-time buyers having to fill out the KYC form. This flexible business structure also allows a diverse category of MSMEs to be eligible for the funding.
• B2B BNPL models do not require collateral from borrowers, effectively functioning as any other consumer or personal loans.
• KredX ensures a frictionless and hassle-free integration of Application Programming Interface (API), leading to a notable decrease in point-of-sale dropouts.
• AI-oriented analytics for a personalised payment procedure of KredX Pay Later can significantly enhance the user experience. Furthermore, with the increase in the brand loyalty of customers, the Customer Lifetime Value also gets a major boost.
• KredX is trustworthy when it comes to offering reliable accounts receivable financing. So, buyers are able to pledge their unpaid invoices as risk-free assets.
• A major benefit of B2B Pay Later – KredX is the thorough evaluation of a buyer’s profile and the extended credit line. This way, there is a reduced risk proposition of non-payment.