Business buyers have long relied on invoice terms to manage cash flow. Financing providers now offer similar flexibility at checkout, paying the seller upfront while the buyer pays over time.
How it works
A financing provider assesses the buyer, pays the seller and collects payments from the buyer later, earning a fee from one or both sides.
Benefits for sellers
Sellers get paid faster and can offer longer terms without taking on the credit risk themselves.
Risks for buyers
Fees and penalties can add up. Buyers should compare the true cost with a traditional credit line.
Key takeaways
- How it works
- Benefits for sellers
- Risks for buyers
