Offering payment plans is the fastest and easiest way for you to get paid and your customers to receive their equipment. Considering the rising popularity of buy now, pay later financing in the B2C space, your B2B customers will benefit from it, too.
Consumers appreciate companies like PayPal, Afterpay, and Klarna that allow them to get what they want when they need it. As of 2021, almost 18% of internet users purchase e-commerce products with BNPL, and 36.8% of BNPL users are Gen Zers. According to a CB Insights report, the BNPL market will expand 10 to 15 times its current size by 2024.
But here’s the big question: Will BNPL’s expansion break into B2B circles? Traditionally, B2B customers were restricted to paying with cash, loans, credit cards, or checks. Only consumers benefited from buy now, pay later services that enhanced the digital shopping experience. However, as more providers close the technology gap, BNPL options will start cropping up for the grossly underserved B2B market.
So, how can you start offering buy now, pay later financing to your B2B customers? First, you need to understand what makes BNPL so popular. From there, you can work on making buy now, pay later services one of your company’s key differentiators.
Mastering Buy Now, Pay Later for Business
What do you need to consider when implementing BNPL? To start, your customers won’t ask for it. They’ll assume you don’t have it because so few B2B sellers do. The onus will be on you to bring up the subject in person and online, so be sure to add it to your sales process talking points. It’s best to weave the topic into initial encounters so that customers know it’s an option when they’re ready to purchase.
Secondly, know that not all customers will be able to select BNPL, and that’s OK. It’s important to provide other payment options. For instance, you may be able to offer avenues for your customers to get other kinds of equipment financing. The more payment options you provide for businesses interested in your products or services, the better your chances of converting prospects.
Finally, offering BNPL customer financing means you’ll have to find a partner who can help you quickly and accurately approve applications. This can take a bit of legwork because not every lending institution is set up to quickly evaluate business customers for BNPL purchases. The risk-related formulas alone can be highly complicated. However, there are organizations that are ready to help, including our team at PEAC Solutions.
Choosing the Right Partner for Customer Payment Plans
In time, your B2B customers may start expecting to see BNPL options. You’ll want to be ready ahead of time with this type of financing option, so it’s important to get started sooner rather than later. After all, you want to stay ahead of competitors.
As with any business relationship, who you choose as your financing partner is critical to pulling off a successful BNPL program. You’ll want to seek out a company that understands how nuanced and complex B2B buy now, pay later services can be. Your partner should be flexible enough to meet your customers’ needs and paint you in the best light.
At PEAC Solutions, we’ve provided innovative digital financing options to B2B companies for years. Our goals are your goals: Increase your profits by satisfying the financing needs of your B2B customers. The best way to do that in a recovering economy is to help customers manage their money through straightforward BNPL options.
Want to learn more about how PEAC Solutions accelerates sales? Check out our blog featuring our array of digital tools.