Buy Now Pay Later is a short-term financing option that provides extra financial freedom to customers. Generally, BNPL allows you to make any purchase and pay later in a given time. One may also choose to pay in installments at regular intervals with Buy Now Pay Later.

According to studies, India’s Buy Now Pay Later option is flourishing, and by 2026, it will have risen tenfold. The basic reason underlying BNPL’s success is that consumers find it easier to adopt.

Introduction to SMBs and BNPL

In India, Small and Medium Businesses (SMBs) are quite literally the backbone of our economy. This sector battles with a plethora of challenges, with lack of access to credit being one of the biggest ones on the list. According to the World Bank, Indian SMBs face a $380 billion credit gap, making it difficult for them to meet short-term expenses and manage day-to-day operations.

Secondly, small businesses survive by being agile but relying only on bank loans or credit cards since funding may not make them competitive enough. When you sign up for either of these, you limit yourself to one financial source, and you could also be paying interest or fees even when you’re not actively using those funds.

In this environment, the need for liquidity and access to capital is humongous, and businesses search for flexible alternatives to service their needs.

The pandemic has accelerated digital B2B payments and e-commerce. There was a need to adapt to ever-changing customer expectations. Every link in the business line- whether Manufacturer, distributor, wholesaler, or retailer and those that buy from them, had to modernize themselves and accept digital billing operations and payment methods.

Today, B2B BNPL (Buy Now, Pay Later) is a payment option readily available at checkout for B2B e-commerce platforms.

It enables users to make a purchase on credit and repay in installments. The B2B BNPL is an unsecured loan, and its payment period can range from 1 week to 36 months. Products like these help provide access to working capital, enhance cash flow management and increase liquidity to boost the growth of SMBs.

What has made this possible? Well, fintechs offering B2B BNPL like EnKash, have harnessed data and technology to create a better product and customer experience. The features include greater flexibility and better terms, quick underwriting, and instant KYC, all available at checkout. Large networks and big data are employed on the e-commerce platforms where BNPL thrives.

So, are you an Enterprise looking to reduce its BNPL management costs by 55 to 80 percent by lowering man-hours, improving spending controls, reducing overall transaction times, and improving operational efficiencies? If yes, then the B2B BNPL solutions provider- the Purchase Card or P Card is your go-to savior! Read on.

How are purchase cards solving B2B BNPL?

Purchasing cards, also known as P-Cards, are commercial cards that you can use to make B2B payments as an alternative financing option. For instance, EnKash has a unique purchase card program that offers solutions to SMEs like- quick credit evaluation, collateral-free financing options, and minimum documentation.

Add to this- no foreclosure charges and a variable credit and billing cycle suited to the specific business needs so that cash flows are not impacted. With these benefits of Purchase cards, businesses like yours are already on their way to halving their BNPL woes!

The Purchase card also offers attractive cashback and rewards on expenditure, and P-cards provide a revolving credit line to pay your dues within 30-45 days of the credit cycle. It is backed by an Expense Management Platform that allows you to track payments in real-time and get great cash flow management visibility. The EnKash Purchase Card is used to pay for office supplies, rent and other office utilities, supplier and vendor payments, and any business-related payments.

Advantages of Purchase cards over other BNPL financing options

Provide instant credit to your business buyers and increase your overall sales by 2X!

• Streamlined and Simplified Procure-to-Pay process
• On-Time Procurement of products and services
• Reduced transaction costs
• Complete Control with real-time tracking of expenses

No two businesses are alike- let’s talk about a Purchase card that understands your business and is tailored for you especially!

To know more, visit EnKash. You can also click below on Signup Now and we will reach out to you soon.