Buy Now, Pay Later: The Conversion Builder For Small Businesses

What could be better than buying everything on your wishlist without having to clear the bill instantly? It sounds too good to be true!

You can get all you want; the dress you have been eyeing for ages, the necklace for your anniversary dinner, that one business machine your production urgently needs.  You can have everything you desire without feeling the pressure and burden of going broke for the rest of the month. Sure, it sounds like a dream:

Imagine how beneficial it can be for your small business if the ‘Buy now, pay later’ is actually a truth, as experts say.

Let’s find out together!

Buy Now, Pay Later: An Overview

As the name suggests, it is a model that includes buying now and paying later methodology. A consumer can benefit from this model by purchasing the item on the spot but making the payment in installments later. However, the BNPL (Buy now, pay later) concept isn’t limited to individuals only. Businesses can significantly profit from it and transform their small-scale company into large-scale organizations.

“You can purchase the item now but delay the payment for later!”

 This is the literal definition of BNPL one can easily understand. However, you can’t always depend on budgeting or production expanding tips to make your business successful. Yes, they usually work perfectly. Still, there’s a whole lot more discussion about the investors, funding, employees, and workload that goes into it. So, to help out the small-scale firms, digital companies like PayBright or AfterPay partner with the owners to help their case.

How Buy Now, Pay Later Works?

The use of BNPL has been increasing enormously in the consumer world. Individuals and business owners love all the benefits the model provides them personally and professionally. Yet, most commoners find it hard to understand how it actually works. Therefore, they were inclined to use the service but preferred to skip the entire purchase due to the complicated BNPL working.

 A study by Maurie Backman discloses that 53% of people are interested in using BNPL. However, among those above 10% were afraid of the service as they didn’t know how it actually worked or how to use it for their benefit. Of course, the survey must have included the individuals from the buyer’s point of view and the business owners from the seller’s point of view.

Let’s read how it works so that you can be among the 56% of people who used the BNPL service and benefited from it:

So, if we say it’s similar to a personal loan but with more benefits, it won’t be wrong. As it is similar to a loan, it might also charge you an interest fee. However, usually, the retailer offers an interest-free payment period and will only charge the extra fee if you fail to clear it on time.

How Can BNPL Benefit Small Businesses?

Yes, a buy now, pay later strategy has quite some perks for a consumer, but how can a small business make its best use? By becoming a buyer itself! Huh? Didn’t get it? Let us explain:

Here’s a thorough analysis by Marlin Solutions on advantages a small business can have using the BNPL:

1.   Manage Your Cash Flow

Cash and funding are by far the hardest things to manage in a small business. Like there’s so much to buy to run your company smoothly that almost every penny you have for your monthly budget goes straight out during the first week of the month. And, you are almost left with nothing in case of an emergency or some extra spending.

Argh, and the list goes on and on. Everything needs cash and your attention: an increase in order, the occasional bonuses, business meetings, returned orders, etc., thinking of things from a business owner’s point of view, every trivial to major thing is necessary and can’t be avoided.

Here comes the Buy now, pay later model in the picture:

You can think that using BNPL will allow you to benefit from sales as the product is typically paying for the spending itself. So, yes, it’s perfect for a small business.

2.   Avoid Straining Your Business Credit Card

Susan wright explains all the reasons why a business owner must have a separate business credit card for all professional transactions. Yep, 100%, everyone here agrees that having a business credit card can benefit the business in many ways. However, we aren’t here to discuss that. Instead, let us enlighten you on times you knew it but failed to manage the card and ended up crossing the maximum limit.

However, who knows when misfortune may knock on your door?

We can help you remember many other similar incidents when you had to put the bill on your business credit card, resulting in maxing out your credit limit. So, all this could’ve been avoided with a BNPL financing service.

Of course, you need to use your business credit card to build your business score and rating. However, using all the credit won’t help your case. In fact, it will only make matters worse for your business report and financing.

3.   Flexible Payment Planning

What’s the dream of a small business owner? To make it big, probably! But, doing the business on a large scale requires the planning and thinking of a business expert. Someone who knows how to finance, how to budget, and most importantly, how to plan. Now, the thinking, planning, and budgeting phase may vary as per your business, but the basic idea is the same.

Oh, how it would be amazing only if you could plan and purchase by making small and affordable payments. Yep, now it’s possible with the BNPL model! (we know you guessed it :p)


The chances of you getting the flexible and customized BNPL plan are huge because there are so many apps and websites that have started the buy now and pay later financing service. So, even if you can’t get the one you want from one, there are many out there to choose from.

4.   Stress-Free Business Experience

The pandemic anxiety has stressed out so many small and large businesses that it has become almost impossible to recover from it. Nobody knows whether or not their business will be thriving again anytime soon or not. So, when the whole world is at a loss, the small business owner only suffers even more as there’s no backup and finance plan in their business manual.

Small businesses can also integrate the BNPL payment method on their online portal to become one financing retailer and help consumers generate more sales for their business. Here are some benefits:

So, is there any catch to BNPL for your business?

 Yes! There is, but the benefit will surely surpass the cons. It might make you do impulse spending. Usually, a BNPL financing interest rate is quite high, which can affect your business score and funding in case of missed installments.

Bottom Line 

 That’s it from our side!

There we conclude our comprehensive guide on the benefits and working of Buy now, pay later financing and service for your small business.

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