Breaking the Cycle: How B2B BNPL Offers SMEs the Financial Freedom They Deserve

11 April 2025

Small businesses (SMEs) tolerate late invoice payments as a captive landlord would bear an unpleasant tenant. They provide products and services on time but wait several weeks sometimes months for their payment. Delayed payments have crippled development, limited cashflows, and generated unnecessary financial pressure. 

Here at Affivo, we are familiar with this battle. Traditional financing options like bank loans or invoice discounting sometimes fall short of what many UK’s SMEs need since they have narrow margins. This is why we created a game-changing answer: B2B Buy Now, Pay Later (BNPL).

The Lack of Cash Flow Preventing SMEs from Moving Ahead
Picture this: you run a fast-growing small business. You have completed the request, sent your invoice, and won a major customer. Rather than receiving instant payment, you are advised to wait 30, 60, or even 90 days. At the same time, suppliers need to be paid, staff members need salaries, and new possibilities call for a financial lifeline to keep you just going. 

You're under a stranglehold of working capital. You're one among many. Late payments cause almost 57% ^[1] (FSB), 65% of businesses frequently struggle with late payments on invoices, thus a vast majority end up seeking working capital support from outside just to keep afloat. 

Why Regular Credit Is Insufficient?
Although several SMEs turn to a bank loan or invoice discounting, these have disadvantages:

• SMEs can be left in limbo as bank loans sometimes take weeks to clear. 
• Many small businesses do not have the funds to secure a loan. 
• Credit facilities often have high expenses that reduce profit margins. 

In the fast-paced economy, SMEs need a more intelligent way of working capital management, one that works along with their business cycles, not against them.

How B2B BNPL is revolutionary?
At Affivo we believe SMEs should not need to follow payments or negotiate financial barriers simply to maintain their operations. While their consumers have flexible payment options, our B2B BNPL solution guarantees that small enterprises are paid immediately.
Affivo's BNPL plan enables small businesses to no longer compromise growth or fight with late invoices. Instead, they could concentrate on growing, investing, and flourishing.

The BNPL Boom: A Global Trend 
BNPL is not only growing in retail but also in B2B transactions. Valued at more than £1.3 trillion, the B2B payments sector of the UK is actively looking for non-bank and standard credit alternatives by almost 40%^[3] of small businesses. 

What is propelling the change? 
More companies are embracing fintech solutions for smooth transactions. Greater SME financial inclusion is being urged by the UK government. Companies are also searching for payment solutions in line with their revenue cycles.
The UK’s share of global B2B payments market of $83tn in 2024 is to grow with the market at 8% CAGR to $4tn[4] by 2030. The B2C BNPL in Europe and globally have shown impressive growth in recent years and increasing digitisation and acceptance of BNPL in B2B payments expects to capture 15%-20% of the overall B2B payments by 2030 – an estimated $800bn^[5].

More SMEs are choosing flexible and frictionless payments solutions
Companies are turning to B2B BNPL to have more power over their cash flow. This is how they are making the change: 

• No waiting period. Get paid the moment you get an invoice 
• BNPL doesn't ask for collateral like typical loans do
• SMEs get payment upfront and BNPL providers manage customer credit risk 
• Businesses can grow faster and handle bigger orders free of cash flow problems

Future of SMEs
We believe that financial independence shouldn’t just be exclusive to large corporations, SMEs should also have it. SMEs drive the UK economy, and they deserve more suitable financing alternatives that run on their terms. 
B2B BNPL from Affivo gives us more than just a payment option. We are empowering small enterprises to expand without restriction. 

Find out more about Affivo now.