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FAQ: How does BNPL work for B2B buyers?

Topics: Finance


The rising popularity of buy now pay later (BNPL) technology with B2C companies and consumers is now heightening BNPL interest with B2B merchants. Currently, 40% of B2B transactions are done in net payment terms programs. Most of these programs are still mostly or entirely handled with manual processes, but that is changing as the advantages of an automated net 30 payment option for both sellers and buyers becomes better understood. 

Here are some frequently asked questions about this coming B2B ecomm trend:

What is BNPL for B2B buyers? The term is being used to describe an automated net terms program. It is an alternative payment option B2B merchants can offer on ecommerce sites in addition to direct debits from a bank account and credit card purchasing. 

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How does BNPL for B2B buyers work? Merchants partner with Apruve, which is the only provider that offers fully automated pay over time and net terms programs with guaranteed next-day payments. The entire transaction, start to finish, is managed on the Apruve Payment Platform, which is coupled with the Apruve Global Lending Network. B2B customers select the net terms payment option in the online checkout. When the order is shipped, Apruve invoices the buyer on net terms. At the same time, Apruve pays the merchant within 24 hours, bringing Days Sales Outstanding (DSO) to one.

What is the B2B buying experience like? It is as simple, fast and seamless as B2C consumer transactions. In the buyer portal, new buyers can quickly and easily create an account and pre-qualify for credit of up to $1 million, all in less than three minutes.

B2B customers can view product options, fill their basket, and place their order. Buyers can also create purchasing teams, set up autopay, and track invoices from the buyer portal. An automated net terms program can be white-labeled to maintain a branded, seamless buying experience.

How is BNPL transforming B2B trade credit? BNPL that’s built for B2B sales and marketplaces transforms ecommerce processes. Buyers can see the products online so they understand what they are selecting. Invoices are still generated when the order ships, including multiple invoices if parts of the order ship separately, and buyers still have net terms to receive and inspect the order before they pay. For merchants, every aspect of the transaction is automated with Apruve, which reduces fixed costs by 30% to 50%. The invoice is essentially closed for the merchant the day the order ships.

Automated BNPL also transforms B2B business outcomes. For B2B merchants, DSO of one is a game-changer. Customers are more likely to increase their AOV and purchase frequency since the experience of an automated net terms payment option is streamlined. In addition, Apruve’s Global Lending Network is in 40 countries and growing, enabling B2B merchants to implement online credit programs globally without increasing A/R staff. To know more, read How BNPL is Transforming B2B Trade Credit.

Do B2B merchants offer BNPL to their entire customer base? That depends on the merchant. Some do; others grow their high-frequency, lower-value customers on their ecommerce site with BNPL using Apruve, and continue to serve their top-tier customers with their A/R staff using software such as Billtrust or High Radius, which - when combined with Apruve - creates an all-inclusive automated pay over time program that guarantees next-day payments. With Apruve, B2B merchants can align payment options and service with their customers’ needs.

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Apruve enables large enterprises to automate long-tail credit and A/R so you can stop spending 80% of your time and resources on 20% of your revenue. We partner with each of our customers to solve their unique credit, payment, and accounts receivable challenges and build the right credit solutions for your markets, customers, and goals. 

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