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 payment option and 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 business.

  • 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 credit.

    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 B2B payments offers instant credit for SMEs. It is a closed-loop channel 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 financial expenditure.

  • 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 and again.

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 months
  • Proprietorship/Partnership/Private Limited entities
  • Purchasers who are New-to-Credit and those with 650+ CIBIL score

How to Get Started with KredX BNPL?

The following are the steps for anchors to opt for KredX’s Pay Later service:

Step 1: Fill up the requisite form and sign the agreement.

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.

Bottom Line

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.