online payments

New feature: Pay later option for business-to-business sales

By mihiri May 29, 2019 Comments

ezyCollect is proud to release another feature designed to get suppliers paid even faster. With a deep understanding that cash flow is always critical for both suppliers and buyers, ezyCollect’s new payment option promises a win-win for business-to-business sales.

Suppliers get paid now and debtors can pay later

Suppliers using ezyCollect’s accounts receivable platform can give their debtors easy access to apply for responsible business finance. Debtors approved for extra working capital can then settle their supplier's unpaid invoices immediately and undertake to repay a third-party finance provider in instalments.

The new feature supports ezyCollect’s mission to help businesses have the cash, confidence and information they need to succeed.

AJ Singh CEOezyCollect’s CEO, AJ Singh says: “The good news is, suppliers collecting receivables via ezyCollect will get paid immediately. What’s more, their debtors have access to a working capital solution that helps them to bridge any cash flow gaps that can easily arise if they haven’t been paid on time, either.

"The good news is, suppliers collecting receivables via ezyCollect will get paid immediately."

“Our pay by instalment solution for debtors gives good payers a cash flow solution that will allow them to maintain their on-time payment behaviour with their supplier. They might even have the cash and confidence to buy more.”

Credit transaction history matters

Not every debtor transacting on ezyCollect’s accounts receivable platform will be approved for finance. ezyCollect’s finance manager will first analyse an applicant’s payment history with their supplier on the ezyCollect platform.       Ricardo Hori-2                                                              

Ricardo Hori, ezyCollect’s chief technology officer says: “We have more than 700,000 debtors receiving their supplier’s invoices and reminders via ezyCollect every month. Only debtors with a great transaction history with our user will get ezyCollect’s green light to  move to the next stage of approval by a third-party finance provider.  

“From our testing phase, ezyCollect’s users told us they only wanted the feature if it meant that their customers wouldn’t be led into any sort of credit crisis. It confirmed what we already know: that our users deeply value their own customers and whatever we design has to provide a robust solution for suppliers as well as debtors.”                                                                                                                                         

Even with a rigorous credit check process, the approval process for debtors occurs within 24 hours.

Supporting a prompt payments culture

The business-to-consumer ‘buy now, pay later’ model has taken off in the retail industry, with providers like Afterpay and ZipPay so popular they have become part of the lingo of consumer buying.

"Business-to-business trading needs to catch up in terms of giving buyers the flexibility of paying later. But B2B solutions also have the responsibility of promoting a prompt payments culture along the entire supply chain,” says Aj.

In ezyCollect’s experience, wholesalers and manufacturers are particularly susceptible to the credit crunch at the end of every month. “They experience the domino effect of late payments because their retail customers are typically the slowest to pay their bills, and that cascades down the line,” explains Aj.

“With our pay by instalments arrangement, our customers can essentially invite their buyers to extend their line of credit, but ezyCollect users don’t have to bear the burden of lost cash flow as the finance provider will pay them immediately.”

Pay by Instalments on ezyCollect

ezyCollect users collecting money online from debtors now have the option to include a ‘Pay by Instalments’ button alongside a ‘Pay Now’ button on their invoices, pre-reminders, reminders, and monthly statements.

The debtor selects which invoices they would like to finance, then chooses a repayment plan over 60 or 90 days.

Pay in instalments

Debtors select which invoices they would like to finance and then choose a repayment plan

ezyCollect and the third-party finance provider then undertake a credit approval process. Once the finance provider has issued a line of credit  to use against the debtor’s invoices, the finance provider completes full payment to the supplier in ezyCollect, and the debtor commences their agreed repayment schedule with the finance provider.

Pay in 3 instalmentsThe finance provider pays the supplier's invoice in full immediately

ezyCollect customer feedback is positive

While it’s early days, there is overwhelmingly positive feedback from suppliers that are now offering their debtors the pay by instalments option via ezyCollect’s accounts receivable platform. Says one wholesale distributor:
“We have put the Pay Now and Pay by Instalments [buttons] on absolutely everything: new invoices, emails, pre-reminders and overdue reminders...Our customers love the flexibility and the empathy we've shown them. Phone calls have become more about helping them than pestering them about unpaid invoices."

In summary:

  • Suppliers using ezyCollect to collect money online can offer their debtors easy access to responsible finance.
  • The Pay by Instalments feature is designed to get suppliers paid on time.
  • Only credit-worthy debtors will be approved for finance.
  • Suppliers get paid in full immediately and debtors enter a repayment schedule with a third-party finance provider.

Please note: Pay by Instalments is currently only available for Australian-based businesses (not sole trader or individuals)

To see how your business can get paid on time and online, request a demo of ezyCollect today.

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