How B2B BNPL Helps Suppliers Get Paid on Time

PYMNTS spoke with Neha Raghava, group head of innovation and engagement for Bryant Dental, about how B2B buy now, pay later (BNPL) can help businesses seamlessly afford expensive purchases.

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B2B payments can be challenging for businesses of all types, especially those without the capital on hand to make the necessary expensive purchases to run their organizations. This is particularly evident in the field of dentistry, according to dental equipment supplier Bryant Dental.

“For businesses like ours, where the average order value is quite high, it can be difficult for customers to pay that all in one go,” Raghava explained. “If you just invoice people, it can seem like a pretty threatening amount to just put on a credit card. Other traditional methods like direct debit can be risky for smaller businesses [such as dental offices].”

Offering BNPL allows these businesses to more affordably obtain costly yet necessary inventory essential for day-to-day operations. Breaking up these expensive purchases allows the supplier to be paid in full upfront while simultaneously allowing the purchaser to spread out the payments into more affordable installments.

“We wanted to offer a way to split that payment so it doesn't feel as threatening to the customer as a more manageable amount,” she said. “But equally, it meant that we didn't have to take the risk on ourselves, as we get the full payment upfront.”

Splitting the payment into installments, with Splitit, has a beneficial effect on buyers’ cash flow as well. Businesses no longer run the risk of missing payroll or other supplier payments, and the vendor does not need to wait for the full payment to arrive over the course of the payment period.

“We used to only receive the full payment after the product was delivered, and because each of our products is custom-fitted, it could take up to 12 weeks for delivery,” she said. “But BNPL allows us to invest our money in the business [immediately], and we don't have to worry as much about it. So it's been brilliant for cash flow.”