Instant Credit With Buy Now Pay Later For MSMEs
Micro, small and medium enterprises (MSMEs) are growth drivers
of India’s economy. In fact, they contribute massively to the
country’s growth and employment generation. However, MSMEs have
a complicated relationship with finance because they are yet to
be fully integrated into the financial sector. In many cases,
availing instant credit becomes problematic for MSMEs.
Buy Now Pay Later
offers assistance for these businesses, allowing them to make
necessary purchases to keep their operations running smoothly.
By offering BNPL for MSMEs from fintech
companies like KredX, a B2B company can offer a unique value
proposition, its Pay Later Solution, that increases its revenue.
Why Is BNPL For MSMEs Beneficial?
In India, MSMEs greatly benefit from the integration of digital
solutions into their business. BNPL offers an intersection point
for both a
credit facility. It is an effective answer for smaller businesses with little
or no access to formal credit.
Given below are the main advantages of buying products/services
from businesses offering BNPL for MSMEs:
- Instant Credit For Purchase
Most businesses, especially smaller entities, rely on credit
for their operations. Often, traders and dealers use credit to
buy from their distributors. These transactions were offline
and informal. But now, these micro and small businesses can
leverage the services of online fintech platforms and avail of
instant credit for the growth and development of their
- Hassle-free Payment Option
Business owners can receive instant credit in a seamless and
hassle-free way through the ‘Buy Now Pay Later’ option.
Fintech players like KredX have enabled easy access to instant
These fintech platforms are well aware that small businesses
would likely be unable to produce financial reports related to
their business. They leverage cutting-edge technology to
assist the business in understanding its cash conversion cycle
and allow them access to cashflow finance as required.
- Great Flexibility
Often, MSMEs face cashflow problems, working capital needs and
unforeseeable demands. The ‘Buy Now Pay Later’ option provides
the much-needed breathing space to an MSME to analyse the
financial problem and choose an appropriate financing option.
It provides a flexible repayment schedule for small businesses
to pay for their purchases. BNPL for MSMEs allows them to
explore new opportunities with instant credit. Maintaining the
financial health of the business becomes easy with access to
instant credit. Importantly, it allows a business to run its
operations smoothly during difficult times.
Why Should You Choose KredX For B2B BNPL Payments?
KredX’s solution for
offers instant credit for SMEs. It is a
financing solution that uses high-end technology to allow
distributors, dealers, retailers and stockists to purchase
goods/services on credit. B2B businesses can offer BNPL to small
businesses to get instant cash and increase sales.
Detailed below are the benefits of offering KredX’s Pay Later
solution to business buyers:
- Reduce In Cart Abandonment Rate
According to experts, integration of BNPL reduces cart
abandonment rate by up to 35%. There have been instances when
customers have abandoned carts after realising they will not
be able to afford the chosen product. BNPL makes payments
easier for B2B customers by offering to split up the amount.
- Increase In Sales
Generally, clients make purchases only when it fits their
budget. However, the BNPL option encourages business buyers to
afford higher-value purchases as it splits the payments. There
will not be any negative impact on the buyer’s daily/monthly
- Increase In Average Order Value
BNPL offers more flexibility in spreading the payment over a
time that is convenient for the purchaser. There's also no
hassle of upfront payments. The combination of these factors
encourages clients to buy more. By leveraging BNPL, companies
can make more high-end purchases, leading to an increase in
the average order value, which is beneficial for the seller.
- Improves Customer Lifetime Value
It is a well-known fact that micro and small businesses find
it difficult to get sufficient cash flow for necessary
purchases. The BNPL facility helps them make payments at the
business’s convenience. Moreover, flexible repayment options
like BNPL boost customer lifetime value. All of these factors
encourage the B2B client to rely on the seller’s business time
Who Is Eligible to Avail KredX Pay Later Solution?
Given below are the details of the entities that are eligible to
avail the ‘Pay Later’ solution offered by KredX:
MSMEs or businesses that are operating for a minimum of 6
- Proprietorship/Partnership/Private Limited entities
Purchasers who are New-to-Credit and those with 650+ CIBIL
How to Get Started with KredX BNPL?
The following are the steps for anchors to opt for KredX’s Pay
Step 1: Fill up the requisite form and sign the
Step 2: Provide the data required for quick and
easy API integration with the platform.
Step 3: After the integration, you will get to
see Pay Lateras a payment mode at the checkout.
Step 4: You will receive the outstanding
payment in a few minutes.
India holds great potential for B2B BNPL for small/medium
businesses. The rate at which digital B2B ecosystems have
adopted it and the overall growth of the B2B BNPL model stand
testimony to its future prospects.
To sum up, BNPL for SMEs offer the appropriate financing
solution to MSMEs that need instant credit. Previously, these
micro/small/medium businesses have shared a complicated
relationship with formal financial lenders. But with the rise of
technology, fintech platforms like KredX offer funding solutions
to businesses that face a cash crunch.
Buyers will receive a WhatsApp message/SMS/email
once the invoice is uploaded. They must respond to
the communication by clicking on the ‘Yes/No’
button to approve the invoices.
When a buyer signs up for the services of the
KredX platform, a dedicated dashboard will be made
available to him. He can view every detail,
including available limits, history and
transaction history etc., on this dashboard.
Yes, one can consider BNPL option as similar to an
instalment loan. Customers can pay the requisite
amount through BNPL in EMIs. If they fail to repay
the amount within the stipulated day, they will
have to pay interest.
The borrower’s credit score will not be affected
negatively if he/she makes timely repayments.
Moreover, his/her credit score will improve if
he/she repays the amount within time.