When considering a buy now pay later solution, a lot of commentators look at the business to retail solution and then try to translate the same solution into the business space.

Unfortunately that does not work for two particular reasons:

  • buy now pay later solution for a small to medium business needs to focus on funding the purchase of stock for that business e.g supplies to resell); and
  • the payment terms need to match the procurement pay cycle of the business and allow a one of payment on extended credit terms.

This is typically different than your retail buy now pay later solution because in the retail buy now pay later solution it is on:

  • on asset that most of the retail will hold for example, electronics or buying fashion or something similar that they will hold and keep for a period of time and
  • on a payment term that includes a number of payments over a period of time.

SMEs need to fund the purchase of stock

This approach just work for a business because an SME focuses on buying stock and reselling the stock. Typically an extended credit term for shorter periods can work where an asset is purchased because the asset is a larger value and needs a longer term to pay over.

Cashflows need to match

A buy now pay later solution that will work for SMEs is one that allows them to match their cash flow out against the cash flow they receive – buying an item, reselling it and then paying for that item is ideal in that there is no shortfall of cash during the time whilst the stock is sitting on the SME’s floor or in transit.

UnLock built to fill the need

When we built UnLock what we considered was:

  • the importance for all  businesses to be able to match their cash flows to the cash flow of their sale cycle and purchase stock that they are selling pay for the stock when its sold.
  • Finally allowing a business owner to be able to pay within a 90 day period and giving them sufficient time to have sold the good means they are continually cash flow positive. 
  • to give the power to the business to negotiate discounts with their supplier by enabling them to dictate when they can pay the supplier and negotiating a possible discount from the supplier at that time. 

Let’s admit it suppliers don’t like giving discounts and more so to parties that are not the buyer. Afterpay and Zipmoney will continue to have an uphill battle getting the supplier to give discounts, but they have bargaining power because they have built a large customer base. This is not so in the SME arena, it is more fragmented and typically it operates on an 80/20 rule, 20 percent of my customers buy 80 percent of my supplies.

Using credit insurance, UnLock can deliver extended credit on large amounts, up to A$10Million with a few days

Compared to a many of the buy now pay later solutions being promoted, Unlock has achieved a unique ability to deliver a buy now pay later option for large ticket items as well.

One of our most recent clients now leverages UnLock to create $7 million of additional extended credit and it has become a key factor to support their growth strategy.

With the recent IPO of Openpay, the Buy now pay later solution for the retail customer continues to build a lot of steam, growing negative economic sentiment, an extended credit offering like UnLock, resonates loudly with SMEs


that is why public companies, medium enterprises and SMEs are constantly seeking to use UnLock to release capital in their business from A$50,000 up to A$7million.

Email us at assistance@unlockb2b.com for more information or call us on 1300 257 387, another product proudly brought to you by Marketlend.