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Buy Now, Pay Later in B2B

Buy Now and Pay Later – this service is inextricably linked with modern buying experiences. Now, it is no longer limited to the private customer sector. Buy Now, Pay Later has also become one of the most popular trends in business-to-business (B2B) transactions in recent years. But what exactly is it? In our guide, you can find out what distinguishes this attractive payment model.

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Buy Now, Pay Later in B2B

What is Buy Now, Pay Later?

Buy Now, Pay Later (BNPL) is a new term for payment by invoice — when something is purchased, and payment is received at a later date. In the business-to-consumer (B2C) sector, the payment method is already strongly represented and popular. With Billie, the option is now available in the B2B sector as well, and comes with a number of advantages:

They include

  • Flexible credit line

  • Instalment payments 

  • Payment by invoice

  • Subscription model

Solutions can be processed directly, completely digitally. Billie provides the necessary infrastructure with Billie Boost.

Strong advantages This is why BNPL is becoming increasingly popular in B2B.

BNPL ensures measurably higher shopping carts and increased conversion in B2B e-commerce. As a result, sales are comparatively easy to scale. Lifetime value also increases significantly. It's obvious that Buy Now, Pay Later for business customers can generate sustainable growth — on both sides. After all, this service enables customers to expand their product range in line with demand. Thus, it is possible to adapt to the rapidly changing needs of the market, not only during seasonal holidays!

The process also offers other benefits, such as seamless checkout experiences.This also improves the customer experience in addition to the average order value and is cost-effective to automate. The mechanisms required for checkout are easy to integrate into existing systems. Doing so reduces the rate of order abandonment, even in the context of high-value transactions. Broad data sets also enable B2B companies to design secure transactions. 

Equally important for merchants or traders is the media-interruption-free checkout process. This is reliably eliminated with BNPL — with both the Merchant and the Purchaser using the Billie platform. Buy Now, Pay Later for B2B transactions is not only a method of decoupling the online purchase from the subsequent invoice payment, it is also a service that always considers payments in the business customer sector in an uncompromisingly customer-oriented way.

Is BNPL a loan for B2B?

Financing has always been a major challenge for small and medium-sized B2B companies. In this context, access to more liquidity determines the success or failure of a business. BNPL is a solution for fundraising that is as flexible as it is easy to use. It is reminiscent of the credit card revolution that entered our daily lives 30 years ago. However, BNPL brings with it a crucial difference. It involves various payment options, the payment terms of which can be customized. Thus, BNPL is quite comparable to a loan.

BNPL in B2B e-commerce: Smartly integrated, easy to use

Buy Now, Pay Later for websites comes with numerous advantages. In addition to the increased willingness to buy, the higher shopping cart is particularly worth mentioning. At the same time, the inhibition threshold of an aborted transaction is lowered. For this reason, the constantly increasing popularity of BNPL in B2B is not surprising. But what requirements do you have to meet to be able to offer your customers Buy Now, Pay Later? 

If you decide to use Billie, integrating BNPL into your B2B e-commerce will be straightforward. The first step is to decide on this option in your payment mix. After that, it's up to your developers. They can integrate Buy Now, Pay Later into your systems using an API interface. Our documentation is the basis for this. A practical store system plug-in enables seamless integration into popular store systems. They include: 

  • WooCommerce,

  • Shopware, 

  • Magento,

  • and JTL

Is Buy Now, Pay Later associated with risks?

Liquidity is one of the most important prerequisites for business success in B2B. Buy Now, Pay Later has a positive influence on this. However, Buy Now, Pay Later also brings with it potential risks. For example, it could encourage reckless purchasing. Because of the flexible payment terms, some B2B companies may place less emphasis on accurately calculated inventory. This ties up liquidity in the long term, although this does not yet seem to make any difference to today's day-to-day business. When the payment deadline finally approaches, the miscalculation becomes much more significant, depending on the market situation. 

In addition to the surplus in the inventory, the unintended purchase of goods can also represent a risk of Buy Now, Pay Later for business customers. Since liquidity is always available under the right conditions, the hurdles for purchasing are lower. Thus, the easy accessibility of B2B pay later poses a risk to businesses in case of overambitious use. 

Buy Now, Pay Later - for more room to manoeuvre in B2B

Buy Now, Pay Later is enjoying steadily increasing popularity beyond Germany. If you would also like to increase your sales and customer loyalty, it's worth integrating it into your payment mix. The benefits for your buyers are clear: Your business customers benefit from flexible liquidity as a basis for their entrepreneurial growth. They can order the goods they need from you immediately, with the transaction traceable in the dashboard at all times. This simplifies accounting and ensures sustainable satisfaction at all business levels. 

BNPL for marketplaces also offers appealing benefits to you as a merchant or trader. However, increased customer loyalty is only one of the plus points. The increased security in payment transactions must also be mentioned. Secure payment methods, like the ones we use at Billie, protect you from potential payment defaults. As a result, planning security fully exists. At the same time, recommended Buy Now, Pay Later solutions can be used as a full service. Dunning and collection are thus always parts of it. Once again, BNPL combines what belongs together. At the same time, it keeps its finger on the pulse of B2B payment. After all, digitization is changing day-to-day businesses for good - payment options need to be just as agile.

Do you have any questions about Billie Boost and the topic of Buy Now, Pay Later for B2B? Then simply contact us at info@billie.io or make an appointment here. We will get back to you as soon as possible.

 

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