Ship Now Pay Later

Introduction

SNPL solutions are Backed by NBFC for Logistics service providers (3PLservice providers, Freight forwarders- IATA, consolidators) is gaining the momentum, owing to a desire for more convenient budgeting tools. The COVID-19 epidemic has also played a significant role in promoting this new habit. SNPL services are totally digital, with quick access, and they serve both main agents and sub agents.

Eonepay is serving the Logistics service providers sector, which is neglected by the big banks and financial institutions — by introducing SNPL providing them access to affordable finance but also helping them benefit from the digital revolution underway globally, financing of B2B transactions, both large and small. Supply chain financing; involve the corporate buyer (Anchor) initiating the invoice funding process on behalf of his consumer (Sub-Agent)

The business model

NBFC’s enables their Fintech Partners networks to offer as direct providers' SNPL solutions through Eonepay as aggregators , and the retroactive provider's category involves mainly issuers that offer financing options to cargo agents for all freight charges made on their credit card or otherwise. Main agents pay the sub-agents a certain discount amounts in freight charges as advance payment. SNPL providers charge interest of 1.5 to 2% on the amount, based on the customer's credit and the duration of repayment. SNPL providers don't charge any additional interest rate as long as there are no delays in paying the installments or repayment. Consumers often set up accounts via the provider's app or website. Main agents enter into agreements with SNPL providers and pay processing fee for accepting SNPL payments, which tend to be high relative to the cost of accepting debit and credit card payments. These services can also be offered through virtual cards via the providers’ app, and they can be used for both in-store and online purchases.

The SNPL Company provides the Sub agent (consumer) with a virtual card. Consumer can also pay via installments with their credit or debit card. SNPL providers lend money to the sub agent charging one time processing fees. The Aggregator brings together the Main agents and the Sub –agent (consumers), and the payment is facilitated by the NBFC that Aggregator works with.

How it works-During checkout, the Sub-agent (customer) applies for a credit. NBFC performs a ‘soft’ credit check. NBFC through Partner Aggregator platform settles the full amount with the Main agents (Anchor) against his Invoice raised in favour of consumer and the loan is serviced directly by the consumer (Sub-agent)

Benefits

It offers a win-win situation for both B2B buyer and seller. Invoices, on the other hand, can be valuable way to growing businesses. The NBFC deploys automated risk analysis to address the threat of trade finance fraud and fake invoices, assessing the document against data-driven patterns and parameters while also verifying the invoice with the debtor themselves. Invoice finance can be a crucial way for small businesses to support financial health. By immediately cashing the receivable, they do not only get security over the payment, but can invest that money immediately to run their business, pay creditors, pay salaries, taxes or invest in the growth of the business.”

Another benefit of invoice financing is that businesses do not need to be concerned about late or nonpayment of invoices. Despite growing concerns about bad B2B payment practices, firms that use the invoice financing solution have debtors who have agreed to payment terms of 30 to 60 days, and those debtors "usually" pay those invoices to the bank on schedule.

EONEPAY’s Banking Management Team: “The benefit of the solution is that businesses can decide on a per-invoice basis and at a transparent fee if they need advance financing. This give them control over their cash flow.

Lengthening delays

Since the beginning of the pandemic, the number of businesses failing to pay invoices on time has strongly increased. The small business index showed that 51% of small businesses aren’t paying their bills on time.

Fast-growing businesses

Fast growers can use this immediate payment system to finance themselves with their own money. With the payments due from customers coming in immediately, the business was able to finance the purchase with its own money rather than taking out a loan. Understanding that difference between long payment terms or late payments is crucial to understanding how to support small businesses' financial health. Invoice finance is a tool used by small businesses to support the cash flow gap for businesses as they wait to get paid, but over the years, it is a financing tool that has developed a negative stigma.

Late Payments versus Longer Payment Terms

It is important to make the difference between late payments and longer payment terms typical of some of the largest corporations.

Longer Payments -- Longer payments have very complicated finance functions, as they require 120 days, or even longer. They simply have to ask their supplies to experience quite long payment terms. These are the situations in which invoice financing can be very helpful. Historically, these lengthy payment terms have generated barrier for small Asset owners/ IATA agents or consolidator to work with, what could be profitable and long-term corporate customers with big contracts to offer. By filling in cash flow gaps for invoices with a very less risk of nonpayment, those small businesses can take benefit of valuable clients without worrying about the cash flow gaps that might result

Late payments — Payments that arrive late — way after the agreed-upon due date — are one of the many threats to a small business's success, and invoice financing can help in these cases.

Supplier Invoice Finance : We believe there is a significant unmet need in supplier invoice finance, with over half of the market underserved. The company emphasized its solutions, particularly its Invoice Accelerator product, which allows invoices to be paid sooner than their due date.

Standard Term of Invoice Finance

● Payment instruments -Credit card, debit card, local e-wallets, direct bank debit, integration with PSP platforms
● Credit check –Yes
● Credit application-Yes
● Late fees-Yes, More information available upon request
● Interest rate-We do not view it as interest but a fee as a % of the transaction amount. The fee is between 1.5 and 2%.depending on plan and credit.

(SNPL); SME to IATA freight agents to carriers have formed partnerships with Invoice Finance to help with late B2B payments. Developing our technologies in order to strengthen our cooperation network in the Digital Supply Chain eco system

Formerly known as Invoice Finance product has been renamed " . Everyone buys the SNPL message, especially when missteps can be costly in terms of fees. SNPL is often promoted as a friendlier way to spend without racking up credit card debt. Dynamic discounting offers a solution for businesses to put idle cash to work in a way that improves the buyer and supplier's cash flow at the same time.

SNPL an Existential Lending

SNPL is a paradigm change that is here to stay. Traditional card issuers and Institutional lenders can't afford to ignore the SNPL trend. SNPL loans are a payment capability as well as a lending capability.. Even with the proviso that SNPL loans are frequently utilized for smaller freight payments rather than working capital loans and other secured credit that is phenomenal development in a state that could be a microcosm of the country.

is responsible towards freight forwarders and 3PL’s service provider. Allows Cargo Sub- agents to pay for their freight charges in installments or use as revolving credit ; Eonepay also helps customers with payments, documentation, and shipments tracking. It is true that typical SNPL plans are short term and option of having rolled over — though plan payments often can be made with credit cards.

SNPL is App based to Help Consolidators Track Plans

The SNPL services feature in the apps that track all of the individual Sub-Agent plans that the Main Agent / Consolidator has agreed to with the NBFC firm. Some companies argue that consumers can only have a certain number of plans active at any given time. Some Cargo Agents might get surprised by those penalties, as they may lose track of their payments or utilize more than one SNPL plan.

Opportunity for Main Cargo Agents / Consolidators

SNPL provides a comprehensive picture of all of your financial obligations. As SNPL can be used at both live and online checkouts, any such technology would almost certainly have to be mobile first. The current trend is to mix and match financial services that are disaggregated from a single provider to several could make it difficult for customers to manage their SNPL debt.

Main IATA agents can afford to have a higher loss ratio because they have more revenue pouring in, and they frequently are not paying for the credit bureau pulls. It's misleading to pay as much attention to the losses and default ratio that has been paid, because it is baked into the business model of the companies."

Niche SNPL Product

A longer-term SNPL has components of the current trend but is not like traditional installment loans. The Main Agent/Asset owners, as well as the interest-paying Sub-Agent, pay a portion of the cost. This is the optimum market for NBFCs that cater to necessities rather than desires. All these things that seem trivial are very important for the SME/SMB, so we want to be really like a suite of services where they basically have a bit like a cockpit of international trade.

In today's business ecosystem, SME want a digital path to growth, which includes quick turnaround times, flexible and competitive interest rates, minimal documentation, loan ticket sizes ranging from Rs 100,000 to Rs 50 lakh, credit profiles, and repayment flexibility. Eonepay is aiding a segment that has been overlooked by the big banks and financial institutions by offering SNPL, which gives them access to affordable credit while also allowing them to profit from the global digital revolution.

Non-recourse Export Factoring

1. Our process do not involved LC. We provide Invoice factoring to those who works on open term with their buyers. Means just on credit term of 30/60/90/120/150 days.

2. Exporters can provide any of their minimum 2 buyers. Maximum no Limit. The more buyers’ portfolio we get the best price we can offer. There are no obligation of country & all.

3. Rate of Interested will be changed slightly as per the portfolio of the buyers we get from an exporter. In all cases we will try to offer competitive price in Industry. Our charges would be Including Factoring fee + Interest per annum.

We offer trade finance solutions for emerging market exporters who sell to creditworthy international buyers.

  • documents and then collecting from the international buyer later at our risk.
  • We work with buyers across the USA, Middle East, Europe, Australia and Far East.(OECD Countries)
  • We support suppliers, factories, traders and buying house across India, Bangladesh, Pakistan and other emerging markets.
  • To get started , we first need to know the buyer background.

We will need details on the background of the relationship between the buyer and the supplier to access the eligibility as per Limit Application format-Link

  • From the Exporters we need buyers information in an attached Limit application form along with PO’s and Invoices
  • What goods involved, since how long trading, Incoterm, Limit required per month.
  • Buyer's Payment terms, typical monthly volumes
  • Any issues experienced with charge-backs or late payments in the last 12 months
  • Example or copy of an old PO and Invoice
  • Full legal name and address of the buyer, and a tax reference number or similar (so that we can make sure we have exactly the right company).
  • What to finance: The upcoming POs that you would like us to work on – this month/next month and an idea of the typical monthly shipped volume, number of shipments and number of invoices.

Typical Deal Parameters

  • Minimum invoices: $5,000
  • Cross-border sales/purchases
  • Trade in tangible goods
  • Payment method: open account, D/P, CAD, D/A, and sight and usance L/Cs

Benefits of Export Factoring

Can solve short-term cash flow issues by purchasing your company’s invoices in exchange for an advance of up to 95% of the total invoice value We collect the full amount from your customer upon invoice maturity. Once the invoice is paid in full, we transfer the remaining balance in your account.

  • You get paid within 24-48 hours of invoice submission instead of in weeks or months, or even faster in some cases
  • Our services are not loans so, for many companies, our financing doesn’t show up on their balance sheet as debt
  • We primarily finance based on the quality of your customers’ credit, not based on your financials
  • Our financing is scalable and can grow with your company
  • You have a streamlined workflow as we perform collections, dunning and bookkeeping on your behalf
  • You have peace of mind as we monitor the credit worthiness of your customers and assume the risk of shortfall of payment due to their insolvency
  • You can offer longer payment terms and therefore compete for larger buyers
  • The application and set-up process are faster and easier than when applying for a bank loan