BNPL for B2B: B2B Payments and Trade Credit Webinar + Top B2B Fintech List

What’s new about in-checkout B2B trade credit?

While B2B financing may not seem new, the way these fintechs are implementing it is. Traditional banks and lenders provide working capital loans, but a lack of innovation at the point of the transaction has allowed new entrants to embed directly within eCommerce sites and sales flows. The fintechs in our report provide an end-to-end in-purchase B2B financing experience comparable to the B2C checkout experience consumers are used to from BNPL.

• Goldman Sachs estimates B2B payments flows to be valued at $127 trillion globally and accounts payable automation can reduce time spent by 65%-70%
• 60% of B2B payments are currently still paid via check in the U.S. and Canada1 – but ACH payments are growing rapidly during COVID. B2B ACH payments grew 28% in 2Q 2021

For the leading fintechs, this opportunity could be several times the size of B2C BNPL, which has produced multi-billion dollar success stories like Affirm, Afterpay, Klarna, and more.

In our B2B payments webinar, BluePallet CEO Scott Barrows reviews how his company implemented in-checkout trade credit.

For B2B marketplaces and distributors who get in on the opportunity early, it’s likewise an opportunity to rapidly accelerate digital growth and win market share.

What are the key features of the leading in-purchase B2B financing fintechs?

We’ve reviewed all the top fintech capabilities in our report and these are the commonly adopted features:

1. “Amazon-quality” User Experience: Checkout experience mimicking B2C transactions. Built for ease, flexibility, speed, and transparency
2. Instant Credit Check: Instant (<30 seconds) credit check typically only requires a handful of data points from the buyer, using machine learning technology
3. Net Terms Financing: Financing options typically cover up to the hundreds of thousands per transaction using a real-time application, with some providing support into the millions to highly credit worthy cus- tomers. Customers can choose to pay with net-terms that typically include 30, 60, 90, or 120 days.
4. Payments Orchestration: Pay how you like: Customers can pay their invoices via credit card, debit card, ACH, wires, and mailed checks
5. Better Cash Flow, Less Headache: “Instant” payouts to the seller, with payout time ranging from imme- diate to 2 days. Fintech provider takes the financing risk and handles servicing and collections – no more headache from chasing after B2B borrowers (who never pay on time)
6. Back-Office Automation: Invoice reconciliation, ERP integration, and AP automation capabilities
   

The main takeaway is that these fintechs are bringing a much simpler way for business customers to make payments. Something you’d expect to find on a consumer eCommerce site has now made its way onto B2B marketplaces’ checkout experience.

Who provides the capital for the financing arrangements?

The fintech typically takes the risk on its own balance sheet, or it works with a network of lenders that sit behind them and take the risk. For distributors, you can extend net terms to your customers without the negative cash flow impact. These providers also handle the servicing and collections process, meaning no more cumbersome and costly AR collections process for the distributor.

The experience these fintechs have created is end to end. They are bringing a delightful, simple way for business customers to make payments while taking most of the pain of offering B2B financing away from the marketplaces or distributors.

Click the link below to get the webinar and the report and become an expert in B2B payments and trade credit.

About our webinar speakers

                                                                  Nicholas Johnson is Managing Director at Applico, where he works directly with Fortune 500 C-Suites and Boards to help them build and buy their own platform businesses.

Scott founded BluePallet in 2020 through the merger of a FinTech platform, and EchoSystem, a chemical marketplace. Scott is an entrepreneur and previously co-founded Echo Chemical Exchange.

Shep founded Bryzos in 2017, an online metals marketplace that facilitates trade between third-party buyers and third-party sellers. Previously, Shep was COO of American Piping Products.