7 benefits of B2B BNPL for customers

Jonah Remz
Jonah Remz
Head of Finance
Posted on
August 8, 2023
min read
7 benefits of B2B BNPL for customers

As we’ve covered before, B2B BNPL provides many benefits for companies that offer it as a payment option. Shorter sales cycles, higher ARR and ACV, reduced churn, reduced CAC, more reliable cash flow, and less time spent on billing and payments are just some of the benefits SaaS companies can expect when they begin.

But what about the customer? What do they get out of it?

Turns out, quite a lot—and many of the benefits the customer (or buyer) gets are pretty similar to the benefits the vendor receives. More flexibility, an opportunity to manage working capital more effectively, and a quick, streamlined sales and negotiation process are just some things both parties gain from using B2B BNPL

Keep reading to learn 7 benefits B2B buy now pay later solutions provide for buyers, as well as a few tips for buyers to determine whether using BNPL is a good idea for their business.

7 benefits B2B BNPL provides for SaaS buyers 

One of the most significant benefits of using B2B BNPL is that it solves the oldest problem in sales: buyers want to spend as little as possible, while vendors want to make as much as possible. By reducing the upfront cost to the buyer without lowering the total ARR (annual recurring revenue) for the vendor, B2B BNPL allows the best of both worlds.

However, that’s not the only reason B2B BNPL is good for buyers. Here are 7 of the biggest reasons why B2B BNPL is just as beneficial for buyers as it is for vendors.

1. Better cash flow management

The most apparent benefit of B2B BNPL is that it enables buyers to manage their cash flow more effectively. Because buy now, pay later solutions let you pay for software tools in small installments over months rather than a single upfront lump-sum payment, you can preserve your working capital and purchase a needed tool without squeezing your budget. 

This means you’ll be able to keep more cash to spend on other resources and operating expenses. You also won’t have to spend months saving up every time you need to purchase a new software tool. This can be an extremely important benefit for businesses that experience seasonal fluctuations, other irregularities in revenue cycles, or simply have a tight budget. 

2. Increased purchasing power

Because purchases with BNPL require a significantly smaller upfront commitment, BNPL opens your business up to a world of software and tools you wouldn’t be able to afford if you had to pay in a single upfront payment. These tools include many enterprise-level software solutions that are crucial for business but are only offered in expensive annual contracts.

Deferring payments through B2B BNPL also frees up capital that could be used for other necessary purchases and operating expenses. With the cash you save upfront, buyers can strategically invest in complementary services, equipment upgrades, or even explore new avenues of business expansion without compromising their cash flow. 

3. A less stressful procurement process—for everyone

Traditional SaaS procurement processes can be lengthy, complex, and burdensome for both buyers and vendors. B2B BNPL streamlines this process significantly, making it a win-win for all parties involved.

For buyers, B2B BNPL eliminates the need for time-consuming negotiations, red tape, or the complex process of securing a loan (or extra funding) to afford a service. The application and approval process for most B2B BNPL solutions are often quick and straightforward, requiring minimal paperwork and allowing buyers to access the necessary funds in a matter of hours (or even minutes). 

This can be compared to the much more laborious process of spending weeks trying to get a bigger discount on an annual contract to fit budget requirements or the similarly length process of applying for loans or lines of credit. 

4. Less time spent on managing payments and billing

B2B BNPL platforms are designed with intuitive interfaces and seamless integration capabilities that streamline and even automate many aspects of the payment and billing process—so you don’t have to worry about missing payments or calculating how much you still owe.

When you use a B2B BNPL solution like Capchase Pay as a buyer, you can conveniently agree to, pay, and manage your subscription automatically within the platform. All you have to do is agree to the terms from your vendor, input your payment details and some basic information, and you can automate your monthly payments and easily view how much you’ve already paid vs. how much you have left to go. You can also view detailed information about each transaction for your records. 

By reducing the administrative burden associated with payment management, SaaS buyers can redirect their time and resources toward more essential tasks that concern growth and revenue generation. The transparency and accessibility offered by B2B BNPL platforms also allow buyers to stay on top of their financial commitments, making planning and budgeting easier.

5. Lower interest rates and increased financial flexibility  

Typically, when SaaS buyers need financing to help pay for a product or service, they need to either secure a loan or a line of credit—both of which take time to procure and can be coupled with unfavorable terms. High interest rates, quick repayment requirements, and lack of flexibility can all eat into your budget. But, if you really need the tool and can’t afford the upfront annual payment, it may be your only option.

B2B BNPL offers a more flexible alternative. With customizable deal terms that can be altered to align better with your budget and schedule, you can get financing without the pressure of an overly-ambitious repayment timeline that doesn’t align with your budget projections. This increased financial flexibility allows you to make critical investments that could drastically improve your business without taking on a risky financial burden.

BNPL solutions also typically offer lower interest rates than traditional loans and lines of credit. Many solutions either require the vendor to take on the extra fee or provide special low rates for contracts within a specific price range.

6. Enhanced business agility

Because B2B BNPL allows buyers to preserve more of their capital and improve their buying power, it lets buyers boost their business agility. With BNPL, businesses can respond quickly to changes in the market or time-sensitive opportunities and purchase essential tools immediately rather than waiting for their budget to catch up or seeking additional funding.

B2B BNPL also allows buyers to make payments on terms that align with their business's cash flow patterns or seasonality. This customization ensures that buyers can optimize their spending habits and resource allocation according to the specific needs of their business or market. It also means they have more money left over to spend on last-minute initiatives that react to market changes—such as an ad campaign or a new product update. 

7. Helps build stronger relationships with vendors

Building and maintaining strong relationships is incredibly important in any business setting, but it can be challenging if you can’t get your foot in the door with a vendor. An inability to pay for a contract simply isn’t a good look.

Fortunately, B2B BNPL can help you build relationships with vendors over time and prove you’re a good business partner. Because BNPL allows you to purchase products and services that would be immensely helpful for your business but aren’t entirely within your budget, it can help you begin a relationship with vendors necessary for your next stage of growth. 

BNPL can also help you establish yourself as a trustworthy and financially stable partner by allowing you to prove you can meet your payment obligations in a regular and timely manner.  This can lead to improved vendor-buyer collaboration, fostering a sense of partnership and mutual success—which can help you make more strategic deals with your vendor later on. 

BNPL for B2B payments: Evaluating buyer readiness

While B2B BNPL can provide many benefits, it’s not necessarily the right choice for every deal. If you’re a SaaS buyer interested in using B2B BNPL for a transaction, consider the following to gauge your readiness. 

  • Financial stability. Do you have the capability to meet the ongoing payment obligations required by your contract? Although BNPL expands your purchasing power, you shouldn’t be agreeing to a deal that’s barely doable. 
  • Cash flow projections. Is your cash flow regular or irregular? Will you have enough to cover your installment payments and operating expenses over the next few months? If you don’t know what your cash flow will look like within a few months, BNPL may not be right for you.
  • Technical compatibility. Does the BNPL solution your vendor suggests work with your native currency, bank infrastructure, and preferred payment method? Make sure you have the technical ability to make your payments before signing the deal.
  • Risks, terms, and fine print. Take the time to read through the fine print of your deal to ensure you understand the terms you’re agreeing to, both from the vendor and the BNPL provider. You should know the penalties and processes around non-payment and any associated interest or fees you may have to pay. 

Capchase Pay: The BNPL solution for SaaS B2B buyers

If you’re interested in using BNPL to facilitate a B2B SaaS transaction, consider Capchase Pay. A BNPL solution built specifically for the B2B SaaS market, Capchase Pay offers an intuitive and streamlined experience for both the buyer and vendor.

To learn more about how you can use Capchase Pay to facilitate SaaS transactions as either a buyer or vendor, get in touch with our team