SOLV, a B2B e-commerce platform for micro, small and medium (MSME) businesses, announced the launch of Buy Now Pay Later (BNPL) product for MSME buyers and sellers on its platform. As part of SOLV’s network of financial services providers in the first phase of launching, fintech companies and NBFCs have started offering invoice financing to small businesses through BNPL on SOLV’s B2B commerce platform.
In the era of the Corona epidemic, small businessmen have received this facility. This facility is available at a time when cash is reduced for most of the small businessmen for their financial needs. Through BNPL, small businesses and companies can meet their needs without the huge financial burden and they have more time to pay.
100 crore expected through BNPL this year
According to SOLV’s venture head Jiten Arora, small businesses have been brought under the purview of formal financing through BNPL. According to Arora, both Boyer and Sailor are welcoming the BNPL in the B2B segment. He believes that by the end of 2021, a third of MSMEs will start using BNPL in view of the current trend. SOLV expects to earn Rs 100 crore from BNPL in 2021.
Finance for 3 thousand rupees also
BNPL caters to the needs of both the parties. Sellers need payment immediately and buyers need credit for financing their inventory immediately. SOLV’s technology platform also helps the lending partners to reduce their costs as it also finances small invoices like Rs 3,000. In this way, it proves beneficial for both small businesses and those who lend them.
SOLV Score will boost BNPL services
Solv provides the optional credit score SOLV Score for MSMEs. It creates a card for MSMEs through artificial and machine learning that have both their traditional and alternative data. Through this, the services of BNPL will be promoted and credit flow will be ensured in a convenient manner for the MSME sector.
Due to the Corona epidemic, traditional lenders are taking extra precautions in lending because of the risk. In such a situation, the easy needs of small traders through digital lenders like Indifi, ePayLater and Davinta on the solution are fulfilling the financial needs of small traders.