Why E-Commerce Merchants Need Business-Specific BNPL Solutions

Why E-Commerce Merchants Need Business-Specific BNPL Solutions

The landscape of e-commerce financing has been revolutionized by Buy Now, Pay Later (BNPL) solutions, offering consumers flexible payment options at checkout. However, for merchants catering to business owners and contractors, consumer-facing BNPL solutions like Affirm and Klarna fall short in addressing the unique financial needs of businesses. These merchants require specialized business BNPL solutions that align with the financial structures and purchasing behaviors of commercial buyers.

The Limitations of Consumer BNPL Solutions for Business Transactions

Traditional BNPL solutions are designed for individual consumers, focusing on short-term installment plans, relatively low purchase limits, and personal credit-based approvals. However, businesses—especially those purchasing equipment, materials, or bulk inventory—operate under vastly different financial circumstances. Here’s why consumer-focused BNPL providers don’t meet business needs:

Longer Term Lengths Are Needed

Consumer BNPL programs typically offer repayment terms of 6 to 24 months, but businesses making large capital investments often require more extended terms—sometimes 36 months or longer—to manage cash flow effectively.

Larger Purchase Amounts

While consumer BNPL solutions cap purchase amounts in the range of a few thousand dollars, business transactions often involve significantly higher amounts. A contractor purchasing equipment or an e-commerce business stocking up on wholesale inventory may need financing options that can support purchases of $50,000 or more.

Approvals Beyond Personal Credit

Consumer BNPL providers heavily rely on an individual’s personal credit score to determine eligibility. This approach can be restrictive for business owners who may have excellent business financials but an average personal credit score. Business-specific BNPL solutions should factor in business revenue, cash flow, and overall financial stability when making approval decisions.

No Impact on Personal Credit

Business owners and contractors prefer financial solutions that do not report to their personal credit files. Using a consumer BNPL option may inadvertently affect their personal credit utilization and debt-to-income ratio, making it harder to secure future personal financing.

Tailored Financing Structures for Businesses

Business purchases require financing structures that align with industry-specific needs. For instance, seasonal businesses may benefit from deferred payment options, while contractors may need milestone-based financing aligned with project timelines.

Why E-Commerce Merchants Should Offer Business-Specific BNPL Solutions

E-commerce merchants selling to business customers stand to benefit immensely by integrating BNPL solutions tailored to business needs. By offering financing options that reflect the realities of B2B purchasing, merchants can:

Increase average order values (AOV) by enabling larger purchases.

Improve conversion rates by reducing friction at checkout for business buyers.

Strengthen long-term customer relationships by providing financial flexibility.

Gain a competitive edge in the market by addressing an underserved need.

The Right BNPL Solution for Your Business Customers

E-commerce merchants who sell to business owners, contractors, and other commercial buyers need a BNPL solution built specifically for B2B transactions. At SLS, we offer financing solutions tailored for businesses—longer repayment terms, higher approval limits, and flexible underwriting based on business financials, not just personal credit scores.

Ready to provide a financing solution that works for your business customers? Contact SLS today to learn how our business BNPL solutions can help you drive more sales and improve customer loyalty.