“Ship now, pay later”, a new option for businesses

Supply chain issues have been a hot topic in the media for quite some time now. Take, for example, the footage of ships being turned back at the Port of Los Angeles that was widely released a few months ago.

“It’s all a cash flow crisis because people still have to get paid through this business cycle,” Josh Allencommercial director at Inspection, said PYMNTS.

That’s where financial services come in, helping manufacturers quickly pay their suppliers and get back to business while their products are delivered.

Offer “Ship now, pay later”

Inxeption offers a variety of financial services through its industry SuperApp. Through the app and an online platform, the company helps manufacturers and other businesses grow by driving online sales, managing working capital, and facilitating logistics and payments.

For logistics customers, the company offers a “ship now, pay later” product that allows them to reduce the amount of capital tied up in shipping-related expenses while waiting for payments from the buyer. Payment terms for shipping are available in a range of options up to 180 days.

“Customers that have extended supply chains or more complex supply chains where the cash demands are really intense, that’s where it comes in,” Allen said.

With a working capital solution like this, manufacturers can manage their cash flow and have the cash to purchase raw materials, manufacture their products, and accelerate their sales cycle.

“Cash is so critical and important, especially in small businesses – otherwise it stunts their growth,” Allen said.

Allow merchants to invest in other things

Another strategy deployed by companies is supply chain finance, which allows them to be paid upfront for large orders. This helps them manage upfront payments on orders and transportation now needed during supply chain disruptions.

“With supply chain finance, you interact with suppliers and eliminate cash demands from our customers,” Allen said.

Businesses can also take advantage of a merchant cash advance option, which provides an advance against future earnings for those who need short-term working capital.

“We have a strategy with the merchant cash advance that solves the same thing,” Allen said. “You can basically provide liquidity and the ability for customers to invest in other things – could be marketing, could be raw materials and products, could be several other things.”

In search of knowledge, transparency and solutions

During the supply chain crisis, companies have realized that knowledge is essential, so they are looking for data that will help them be more attuned to what is happening in the market. By being better informed, they can make better purchasing decisions and prepare the capacity they need to move their products.

“There are many ways to consume this data, but they’re looking for insights, they’re looking for transparency, and they’re looking for solutions,” Allen said.

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NEW PYMNTS DATA: THE TRUTH ABOUT BNPL AND STORED CARDS – APRIL 2022

On: Shoppers who have store cards use them for 87% of all eligible purchases – but that doesn’t mean retailers should start buy now, pay later (BNPL) options at checkout. The Truth About BNPL and Store Cards, a collaboration between PYMNTS and PayPal, surveys 2,161 consumers to find out why providing both BNPL and Store Cards is key to helping merchants maximize conversion.