Two launches Instalments with 3-24 month payment terms for B2B

As Buy Now, Pay Later continues to develop into a fully fledged solution for B2B payments, more and more businesses have started seeing the benefits of a streamlined checkout experience.?

Tailor-made solutions like our E-Commerce Guest Checkout or Trade Account, for example, help to decrease drop-off rates, boost conversions, and onboard customers in seconds. That's all while improving cash flow and offsetting credit risk FYI...

More recently, however, Two has been working on a new type of B2B payment solution called Instalments! This solution is aimed specifically at businesses that offer rental services, subscriptions plans, or sell big-ticket items.

Why B2B Instalments?

In the world of rental/subscription services, customers prefer to pay on a monthly basis. In fact, only 3.8% of SaaS businesses offer annual plans as a result. B2B plans tend to have a higher price point than B2C, making one-time annual payments a less attractive option for customers. So, they simply chose to pay on a monthly basis.

There are, however, challenges that businesses face when selling like this.

For starters, issues with cash flow are common. If you only receive payment for your product or service on a monthly basis, it can be difficult to expand your business. Customers may also pay late creating a serious knock on effect for your cash flow.

Managing recurring bills can also be a problem, especially when dealing with multiple customers on different billing cycles. That's a whole lot of paperwork you need to handle that costs a lot of money and time.

For businesses that sell big-ticket items, equal challenges are faced. Thanks to longer sales cycles in B2B and higher purchasing risk for customers, selling more expensive items can be an uphill battle. Customers are far more weary of parting with that amount of cash.

This is why Two has launched Instalments by Two!

What are Instalments by Two?

Instalments make it easy for businesses to sell rental services, subscription plans, and big-ticket items on trade credit with terms that suit the buyer and the seller.

The option to split payments across 3-24 months makes purchases easier for the buyer. And of course, for you that means everything from higher conversion and retention rates to less admin and improved cash flow!

Here's how it works:

1. When a customer chooses to pay with Instalments, they choose the repayment terms that suit them. Their monthly repayment terms are transparent and visible to them straight away.

2. Two instantly credit checks the buyer and handles ID-verification using sophisticated industry-leading methods.

3. Once the customer is approved for credit, you fulfil the order and get paid out in full by Two.

4. Your customer receives a single, updated invoice every month showing any changes they’ve made to their order. All changes to a customer’s order are handled directly by Two. If your buyer decides to cancel their subscription at any point, a final invoice will be updated automatically.

Recently, we caught up with Sami Bournemom, CEO and Founder of HOFY. Having just started offering Two’s Instalments solution to his business customers, he had this to say:

Instalments is ideal for splitting larger purchases or securing annual contracts for rental and subscription services. But what are some of the core benefits to you, the seller?

Upfront payments

As mentioned above, you receive upfront payments for any sale processed through Instalments. This drastically improves your cash flow by ensuring you get paid straight away instead of waiting each month.

No admin

Two automatically reconciles payments for invoices, tracks late payers, and monitors the remaining balance of long-term purchases. This means you can say goodbye to setting up credit line agreements with your customers.

Buyers can also add new items to their rental or subscription contracts at any time. Any new items will be added as a new instalment plan by the buyer and invoiced?together with existing subscriptions. All without any work from you.

Only pay for what you use

Many services charge for simply using a platform. Not with Instalments. Only pay for what you use.

Grow B2B sales

With Instalments, you make your business the leading choice for long term B2B purchases and the easiest to afford. This leads to higher conversion rates and sales for rental services, subscription services, and big ticket items.

Learn more about Instalments

To learn more about how Instalments can help your business, make sure you check out our dedicated product page. And if you'd like chat to us about it, speak to one of our experts!