Buy Now Pay Later (B2B)

B2B BNPL adapts the consumer BNPL model (Affirm, Klarna, Afterpay) to business procurement, where the same cash-flow tension exists: buyers want longer payment terms; sellers want faster payment. The B2B BNPL provider bridges this gap by paying the seller at the time of purchase (minus a merchant discount fee, typically 1.5–4%) and extending credit to the business buyer on deferred terms (net-30, net-60, net-90, or installments).

Structurally, B2B BNPL is a form of embedded trade credit. Unlike traditional net-30 accounts (which require separate credit applications, relationship building, and manual approval), B2B BNPL is embedded at checkout with instant automated underwriting based on the buyer's business credit profile (Dun & Bradstreet, Experian Business, Equifax Business), bank data, and platform signals. The underwriting decision happens in seconds.

Regulatory treatment: B2B BNPL involves commercial credit, which is largely exempt from consumer-credit regulations (TILA, Regulation Z, CFPB oversight). However, applicable regulations include: UCC Article 9 (security interests in accounts receivable if the provider takes assignment), state commercial lending licensing requirements in some jurisdictions, and BSA/AML obligations for providers qualifying as money services businesses. The FTC can reach commercial practices that are deceptive under 15 U.S.C. § 45 (ftc.gov).

For SMB buyers: B2B BNPL can preserve working capital for high-value business purchases (equipment, inventory, professional services) without a formal loan application. Evaluate the effective APR if the deferred period carries a fee — a 2% fee for 30 days is ~24% APR-equivalent. For SMB sellers accepting B2B BNPL: accept reduced proceeds upfront (fee) in exchange for instant payment and expanded buyer access. Compare against net-30 DSO improvement economics.