Beyond Cash Flow: B2B Finance Solutions Empowering Sustainable Growth in 2024

In the evolving landscape of B2B finance, Buy Now, Pay Later (BNPL) schemes, instant working capital loans, and line of credit services are pivotal in fostering sustainable growth. This article delves into key global and Indian players in each segment, focusing on those serving substantial clients.

B2B BNPL

B2B Buy Now, Pay Later (BNPL) services are increasingly becoming a cornerstone for retailers looking to purchase from manufacturers and wholesalers without the immediate capital outlay. These services enable retailers to manage their finances more effectively.

Resolve offers upfront cash for approved “net term invoices” of 30 or 60 days[i]. Resolve integrates with several platforms like Intuit QuickBooks, NetSuite, Adobe Commerce, and more[ii], aiming to improve cash flow management and customer experience for businesses.

Hokodo offers B2B BNPL that feels very similar to the traditional 30-60-90 payment terms[iii], making it easier to adapt to. Hokodo also offers B2B EMI-like payment[iv] on purchase orders.

Indian Innovators:

Rupifi has a significant presence in India, Rupifi collaborates with B2B marketplaces like Walmart, Flipkart, and Jumbotail, providing credit to more than 50,000 sellers. It aims to expand its B2B BNPL Credit payments with instant settlements[v]. Similarly, actyv.ai® with solutions like actyv PayLater[vi] for BNPL and Transaction Insurance with actyv Insure[vii] makes it modular for easier adaptation.

Instant Working Capital Loans and Line of Credit

Working capital loans are essential for MSMEs needing quick financial aid to maintain or grow their operations. Lines of credit offer another layer of financial flexibility, allowing businesses to draw funds up to a pre-approved limit. Global entities and Indian firms alike offer these services.

These loans are designed for short-term needs like meeting payroll, purchasing inventory, and managing cash flow efficiently.

Funding Circle US offers start-up funds, including working capital loans in under 1 hour[viii] and Flexi Pay line of credit from $1000 to $250,000[ix], to help businesses with initial investments such as facilities and equipment. OnDeck is another player worth looking at.

Indian Players:

RazorpayX, a business banking solution by Razorpay, offers a range of financial services including working capital loans. RazorpayX is designed to cater to tech-enabled businesses providing them with a credit line of up to INR 25 Lakhs[x]. Another startup Lentra specializes in customisable digital lending solutions in India and provides a full set of services like B2C BNPL[xi], Line of Credit, Asset Loans, and seamless connectivity with the Open Credit Enablement Network.

Oxyzo Financial Services, a part of the Indian Unicorn OfBusiness is also SME and Corporate Financing segment. Similarly, FlexiLoans has traditional business loans like Merchant Cash Advances and Vendor Financing to support the financial needs of Indian MSMEs.

KredX specializes in invoice discounting[xii] which helps with money tied up with unpaid invoices and lines of credit, offering innovative financial solutions to improve the cash flow[xiii] of businesses across India. It is also available as an investment solution for investors looking to buy short-term invoice discounting[xiv] contracts.

Conclusion

The B2B finance sector is witnessing transformative growth, driven by innovative BNPL services, instant working capital loans, and line of credit services. Players like Hokodo, Rupifi, and KredX are at the forefront of innovation. With the right combination of financial services, SMEs and start-ups with profit-generating business models can scale without being dependent on Venture Capital and other forms of equity dilution.

Bibliography

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https://www.actyv.ai/actyv-paylater.html, n.d. actyv PayLater | B2B Buy Now Pay later [WWW Document]. URL https://www.actyv.ai/actyv-paylater.html (accessed 2.23.24).

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Invoice Discounting Investment [WWW Document], n.d. URL https://www.kredx.com/invoice-discounting-investment (accessed 2.23.24).

Line of Credit: Collateral-free loans for business needs [WWW Document], n.d. URL https://razorpay.com/x/line-of-credit/ (accessed 2.23.24).

Net Terms | Resolve Pay [WWW Document], n.d. URL https://resolvepay.com/net-terms/ (accessed 2.23.24).

[i] (“Net Terms | Resolve Pay,” n.d.)

[ii] (“Integrations | Resolve Pay,” n.d.)

[iii] (“30, 60 and 90 Day Payment Terms | Hokodo’s B2B Trade Credit,” n.d.)

[iv] (“B2B Instalment Payments | Hokodo’s Split Payments For B2B,” n.d.)

[v] (“BNPL,” n.d.)

[vi] (https://www.actyv.ai/actyv-paylater.html, n.d.)

[vii] (https://www.actyv.ai/actyv-insure.html, n.d.)

[viii] (“Business Loans & Small Business Loans | Borrow £10k - £500k | Funding Circle,” n.d.)

[ix] (“FlexiPay: Pay Invoices & Expenses Over 3 Months | Funding Circle,” n.d.)

[x] (“Line of Credit: Collateral-free loans for business needs,” n.d.)

[xi] (“Buy Now Pay Later Platform | BNPL Solution - Lentra,” n.d.)

[xii] (“India’s Leading Invoice Discounting Platform - KredX,” n.d.)

[xiii] (“Automation Cash Management Software | Cash Management Solutions,” 2020)

[xiv] (“Invoice Discounting Investment,” n.d.)