Global B2B payments solution provider Koverly has launched a buy now, pay later (BNPL) solution that gives businesses a 30-day extension on their foreign exchange (FX) payments. At no cost to the buyer or the seller, the KoverlyPay solution will enable businesses to extend their payments into four, eight, and 12 weekly installments.
Businesses can apply for financing by choosing KoverlyPay at checkout, and a decision is given within 24 hours. Once an application is approved, the business does not need to pay back the funds for the initial 30 days and is provided with clear and fixed repayment terms. Koverly will also transfer funds to the recipient in one to three business days.
“Inventory is the lifeblood for importing businesses, and it is directly impacted by cash flow,” Koverly CEO Igor Ostrovsky said in a prepared statement. “Our KoverlyPay offering for FX transactions is designed to give businesses enough extra working capital to unlock at least one additional inventory turn per year. For a typical importing business, this can boost annual profitability by 50-100%. This is a game-changer for global trade.”
BNPL on the Rise in B2B Space
Once the newest craze for consumers, BNPL is now becoming a hot topic for businesses. B2B BNPL will continue to grow because it offers businesses more flexibility in their cash flow, and they can enjoy faster approval for credit, especially when more banks are tightening their credit lending standards.
“B2B BNPL is a hot sector of payments right now, “ said Ben Danner, Senior Analyst of Credit and Commercial at Javelin Strategy & Research. “This year we’ve seen a lot of new fintech players and traditional financial institutions like Santander launch new B2B-oriented BNPL solutions.
“A differentiating factor for B2B BNPL vendors will be fast and reliable credit decisioning, especially as the market for commercial lending gets tough. Businesses needing quick access to working capital to supplement their cash flow needs will certainly benefit from the competition in BNPL offerings.”
