Unlocking Business Growth: The Powerful Benefits of Offering Buy Now, Pay Later to Your Customers

Buy Now, Pay Later is quickly emerging as a key tool for success in B2B purchases. This new market adaptation of the successful and flexible B2C payment option now provides businesses with the chance to make the purchases they need while flexibly paying. This empowers business owners to keep their capital, improve their cash flow and invest back into their enterprises for growth. 

The benefits associated with Buy Now, Pay Later aren’t exclusive to business owners looking to buy, vendors can also take advantage of the benefits associated with this new way to pay. Read on to learn about some of the benefits that you can take advantage of by embedding this finance option as well as how Backd can power your flexible financing today with BackdPay. 

What is B2B Buy Now Pay Later?

B2B Buy Now Pay Later allows businesses to make the purchase as they usually would but instead of entering their payment details at checkout, they would instead allow a third party to make the payment on their behalf.

This third party may perform some sort of soft credit check in order to provide the buyer with different terms that will allow them to pay for the purchase over time while the Buy Now Pay Later facilitator proceeds with paying the storefront the total amount due, minus any necessary facilitation fees. The terms may include interest rates, depending on how long the buyer chooses to finance and the overall price of the item(s). 

What are the benefits of offering Buy Now Pay Later?

Offering B2B Buy Now Pay Later can be a game-changer for businesses looking to boost sales, improve cash flow, and stay competitive. Let’s take a deep dive into some of the benefits that you can experience if you decide to integrate Buy Now Pay Later into your storefront. 

Boost Sales

Let’s face it, as a business owner you are always looking for ways to increase your profit margin and one of the best ways to do so is by increasing the volume of your sales. Offering the ability for businesses to buy now and pay later will increase the chances that a customer will proceed with the purchase, as they won’t need to have the funds immediately available to proceed. Instead, they can finance this purchase over time with no risk to your business, as your Buy Now Pay Later provider will pay you at the time of purchase. They will also shoulder the burden should the buyer default on the loan or payment plan. 

Offering Buy Now Pay Later can also attract new customers. As it is a relatively new payment method in the B2B market, Buy Now Pay Later is a massive selling point to put you above the competition. Customers may actually look specifically for vendors who offer flexible financing options. With 92% of businesses currently being hesitant to start offering Buy Now Pay Later options, despite the potential to grow B2B sales and order volumes by five times, offering now may be a chance to get ahead of the competition. Implementing Buy Now Pay Later Now also provides the opportunity to build a loyal customer base by proactively offering flexible financing. 

Offering B2B Buy Now Pay Later is a great way to increase the average order value that your clients will purchase from you. Some companies that have been early adopters of B2B Buy Now Pay Later have seen as much as a 16% increase in the year-on-year growth of their AOV orders. 

B2B Buy Now Pay Later can also help increase the frequency that your customers purchase from you. Buy Now Pay Later lets your clients hold onto their capital and grow, and with the growth of your client’s business comes the need for them to purchase more frequently. 

Improve Cash Flow

Cash flow will always be an issue that business owners have at the forefront of their minds, but did you know that implementing Buy Now Pay Later in your B2B marketplace could actually help improve your cash flow and that of your clients? 

Buy Now Pay Later offers vendors and suppliers the chance for immediate payment, resulting in capital flowing directly into your business while your clients pay your selected Buy Now Pay Later provider for the items they have purchased. 

Offering Buy Now Pay Later also reduces the risk of late payments or bad debts as your Buy Now Pay Later partner takes on the responsibility of collecting payments. They should also take charge of credit checking and verifying documents that clients submit. When working with a Buy Now Pay Later provider, they take on a majority of the work in regard to the financing, this means that your role in the financial transaction is unchanged and no effort is required on your part. The only responsibilities that you may have will be to send out the required invoices or ensure that you have your preferred Buy Now Pay Later provider integrated into your checkout. 

Stay Competitive

When running your enterprise, you always want to ensure that you have a competitive edge that separates you from every other business in your market. Buy Now Pay Later provides your business with the chance to stay competitive and get ahead of the competition by meeting customer expectations. As previously stated, 92% of business owners are hesitant to start offering B2B Buy Now Pay Later despite the fact that it can drastically increase sales and order volumes. As time goes on, more business owners will adopt and integrate Buy Now Pay Later into their payment options, but implementing now helps set you apart from the competition.

B2B Buy Now Pay Later also allows you to be competitive in regards to the rate that your Buy Now Pay Later provider offers. Every provider will have different rates and it’s up to you to decide which provides your business with the advantage over the competition. For instance, BackdPay purchases allow your customers to finance their purchases over 3, 6, or 12 months with no cost to your business. 

Adopting B2B Buy Now Pay Later allows you to stand out in a crowded marketplace. Getting ahead and offering all of the benefits that come with Buy Now Pay Later will be the key to competing in crowded marketplaces as this business financing option becomes more widely accepted in the B2B marketplace. 

Why offer B2B Buy Now Pay Later?

Offering B2B Buy Now Pay Later empowers your business by boosting sales, improving cash flow, and allowing you to keep a competitive edge in your market. This flexible financing option is quickly emerging as a must-have offering that provides a multitude of benefits to your customers and clients while also setting your enterprise up for success. As time goes on, more and more businesses will embrace B2B Buy Now Pay Later and the benefits that come with it. 

BackdPay

Whether you want to boost your sales or just offer your customers a more flexible payment method, BackdPay is the new way to let your customers pay. BackdPay can be easily integrated into your checkout and offer your clients the ability to finance their purchases while you get paid at the time of ordering. 

BackdPay has the potential to increase your average order values by +150% and grow your customer base by 30%, all while still getting paid instantly for the purchases that your customers make. Backd offers an effortless integration so that BackdPay works for your individual checkout and our team handles all necessary credit checks.  Offer your customers the flexibility they need today with BackdPay, call (737) 256 7458 to talk to our team and learn more.