Are you a small B2B business looking to increase sales and bolster customer loyalty? One way to do that is by offering customers the opportunity to buy now and pay laterIt’s an increasingly popular option for B2B buyers, so why not make it available for your business?

In this article, we’ll dive into the fascinating statistics showing why Buy Now, Pay Later (BNPL) services are rapidly gaining traction in today’s B2B payment spaceFrom increased customer convenience to higher conversion rates and improved customer relationships, BNPL offers numerous benefits – some of which may surprise you.

As you add this innovative payment option, read on to discover all the key stats every small business should know.

What is B2B Buy Now, Pay Later?

B2B Buy Now, Pay Later (BNPL) is a short-term financing payment solution transforming how business buyers make transactionsB2B BNPL is similar to its B2C counterpart, but it also takes into consideration the factors that B2B buyers must take into account when they make paymentsThis includes the fact that payments may be more complex, recurring, or simply larger in value or volume.

BNPL puts purchase power in buyers’ hands by providing them with the flexibility to pay for their raw materials and services in instalmentsAfter placing their order and completing a simple registration process, customers can split up the cost of their purchase into four equal payments and receive the items they purchased right awayAlternatively, with other BNPL providers such as Biller, buyers can choose to pay the full amount in 30, 60, or 90 days, effectively delaying their payment while still receiving their goods right away.

B2B BNPL is an ideal payment solution for business who would like a better handle on their cashflow, or those who have business models that stipulate delays in paymentsFor example, manufacturing companies require the purchase of raw materials for them to begin any projectTheir customers, however, may prefer to pay only at the project’s completionThis means that they may have a sizeable gap between when they pay for their supplies and when they get paid by their customers.

What are the benefits of Buy Now, Pay Later?

There are numerous benefits to offering BNPL services, such as a healthier cashflow, improved customer convenience, increased conversion rates, and a bigger customer baseHere’s a breakdown of the key advantages:

The main benefit of BNPL is improved cashflowB2B BNPL offers business buyers and sellers more flexibility in when they get paid and when they payMany BNPL providers pay the business seller when the transaction is made, so that they do not have to wait for payments or chase late invoicesSimultaneously, the buyer gets to choose when to make their payment – when they have the funds to do so.

Next, BNPL can also improve buyer-seller relationshipsB2B can purchase items immediately and pay for them over time, while the seller gets paid straight awayWhen the seller no longer needs to chase invoices, both parties can feel more comfortable and strengthen their relationship.

In addition, small businesses that offer BNPL services often see an uptick in conversion ratesStudies show that consumers are more likely to make a purchase when they have the option to bill split instead of paying for it all upfrontIt is because bill splitting allows customers to pay for their items on their terms – something traditional payment methods can’t match.

Finally, B2B transactions are often more complex than B2C ones due to the fact that there may be multiple stakeholders involved and the fact that the purchase may be much largerThis means many B2B buyers have to undergo a credit check, whereby sellers make sure they are creditworthyHowever, this can be difficult for start-ups and freelancers who do not have an established credit history.

BNPL providers often take charge of this credit checking process for their sellers, and they are often more inclusive in their credit checks with the use of machine learning that can scan far and wideThese credit checks are often completed in seconds and approval rates are highIn other words, these providers make vendors more accessible for small businesses by putting in the extra work to help them secure transactions.

How Popular is Buy Now, Pay Later?

According to a recent survey, BNPL services are increasingly popular among consumersAround 53% of respondents said they had used bill splitting in the past six months, while an additional 20% indicated that they planned to use it in the future.

In addition, 62% of shoppers said bill splitting made their shopping experience more convenientIn comparison, 65% reported that bill splitting made it easier to purchase items they otherwise wouldn’t have been able to affordBNPL services are becoming more accepted as a viable payment solution for consumers, and small businesses should consider offering bill splitting to stay competitive in the market.

How does B2B Buy Now, Pay Later Affect the Customer Journey?

The introduction of bill splitting in the B2B space has positively affected the business buyer journeySmall businesses have been able to navigate their purchase process more quickly and efficiently, and with much greater flexibilityIt reduces the time it takes for them to complete their purchases, and it minimizes the burden they have on their finances.

In addition, B2B BNPL also helps B2B sellers create a more personalized experience for customers of all types – including small business buyersMany sellers with BNPL at checkout provide customers with their preferred payment options, allowing them to customize the terms of their purchase according to their needs and cashflow.