The Buy Now Pay Later (BNPL) model has gained much traction in
the past few years. Though its achievement mostly shines in the
B2C sector, the gradual and impactful movement towards the B2B
segment seems quite hopeful for small and medium enterprises
Lack of credit supply is the primary challenge for SMEs but when
they get the assurance of timely cash supply through SME BNPL,
the production continues without any disruption. Read the
following sections to learn about SME BNPL in detail.
SME BNPL- A Brief Overview
SME BNPL is a financial product that helps small businesses
involved in transactions with suppliers, distributors,
aggregators or B2B marketplaces.
Operational Method Of SME BNPL
In the SME BNPL model, the business buyer receives the products
or stocks or inventories or supplies immediately and pays in
small instalments over a certain period. On the other hand, the
seller receives upfront payment of the total selling from the
Here, lenders offer a short-term credit to small businesses when
they purchase or avail services from suppliers. The lender pays
the suppliers in advance and the small business owner repays the
loan within 15-60 days. The seller typically bears the interest
for that specific tenor.
However, to enjoy the benefits of Small Business BNPL, one needs
to find a reliable BNPL provider serving business heads and
Looking for a right financier? Find how KredX BNPL Solution can
help your small business.
Benefits For SME Manufacturers
Here is a list of benefits that SME manufacturers can avail by
integrating BNPL services-
- Improved Cart Conversion Rate
Every business involved in digital transactions wishes to
increase cart conversion. Cart conversion refers to the
scenario when consumers purchase products that are set aside
for purchase in future. As purchases are made, items listed in
carts start to reduce hence cart conversion and sales rate
In the SME industry, continuous supply of raw materials or
related items is necessary. Most small business manufacturers
cannot ensure consistent production due to lack of supply.
However, if brands offer extended credit periods through SME
BNPL, they can attract more customers and improve cart
conversion by up to 30%.
- Increased Sales
Buy Now Pay Later (BNPL) refers to a simple payment option
where consumers can purchase certain products without making
any upfront payment. The payment is completed at a later date
at no extra charge. This feature offers the biggest benefit to
SMEs, i.e., small business brands and enterprises.
By integrating the BNPL model to their payment gateways, SMEs
can double their overall sales by offering flexible credit
periods. Thus, they can easily increase average sales per
person by up to 40%. Remember, when sales increases,
entrepreneurs can easily clear stocks by adding additional
stock clearance offers.
- Save On Merchant Discount Rate
Merchant Discount Rate refers to the rate charged to a
merchant for processing payment through credit or debit card
transactions. Adding Medium Business BNPL to
your business can help get release from this transaction cost.
BNPL services allow small and medium businesses to choose two
options. First, they can save up to 2% at the merchant
discount rate. On the other hand, they bear the same to fetch
KredX offers SME BNPL services to help small businesses.
Benefits For SME Buyers
SME buyers can benefit in the following ways:
- Reduced Working Capital Issues
As stated earlier, SMEs typically struggle to maintain a
balanced working capital after paying all the obligations,
i.e., staff salaries, bills. This creates a gap in cash flow,
reducing their power to purchase products from suppliers or
In such cases, if buyers find a supplier offering BNPL
services at the payment gateway, they can purchase products or
avail services and make it available later for B2C customers.
Thus, the product transfer from one small business
manufacturer to another small business retailer occurs
smoothly with the help of SME BNPL.
- Instant Purchase
The primary aim of BNPL services is to ensure that consumers
can purchase products instantly without any upfront payment.
By availing this facility small businesses can stock up
inventory or similar things or add other services and pay at a
Thus, small businesses struggling with loan approvals from
traditional lending institutions (due to reasons like low
credit score) to invest in product purchase can effortlessly
do the same with the help of BNPL services.
- Revolving Credit
Small business buyers can guarantee continued product purchase
or service availability through SME BNPL.
They can utilise the BNPL payment option and make purchases
without any limitations. Thus, the assurance of a revolving
credit facility reduces the stress of small business buyers
All these benefits are accessible with KredX. Individuals
involved in the SME sector can secure these benefits by
following the steps mentioned below.
How To Integrate KredX SME BNPL Solutions to Your Small
Small businesses can integrate KredX BNPL in the following
Step 1 - Fill out the application form and sign
up an agreement.
Step 2 - Provide required details and complete
API integration quickly.
Step 3 - After a successful integration, BNPL
will appear at the payment gateway.
Step 4 - Once business consumers purchase
products, sellers will get outstanding payment within 2 minutes
BNPL services integration process with KredX is quick and
As small businesses are shifting towards digital models of
transactions and integrating innovative payment models like Buy
Now Pay Later, the need is to find the right BNPL supplier.
SMEs are likewise following the latest trends such as managing
finances, logistics, sourcing digitally and introducing
effective payment models like SME BNPL. Thus, when SMEs can
increase sales and cart conversion rates; the biggest challenge,
i.e., managing working capital requirements becomes easy,
accelerating the growth of the Indian economy as a whole.
Yes, SME BNPL is known by various names, such as
Merchant BNPL, In-Purchase Shopping, Shop Now Pay
New-to-credit business buyers can benefit from SME
BNPL by repaying small-ticket loans and improving
SME BNPL helps small business buyers ensure
instant product purchase or service availability