- 65 per cent of small businesses don’t pay merchants on time
- 40 per cent of small businesses take longer than 30 days to pay
- Moula Pay will offer 12 mth terms that will allow small businesses to buy and received goods upfront from merchants and spread payments.
- 49 per cent of small business owners said they would spend more on their business if they had access to funds.
Taking a leaf out of the buy now pay later models so popular with consumers, fintech Moula has launched a new service, Moula Pay which will allow merchants to offer their small business customers affordable payment terms for goods and services up to the value of $250,000.
Businesses have 12 months to repay, and the first three months are interest and repayment free.
New research shows 65 per cent of small business customers don’t pay merchants on time, and more than 40 per cent take longer than 30 days to pay – highlighting how Moula Pay can remove the hassle of chasing debtors.
Over half of small business owners surveyed said they’d use this form of ‘buy now, pay later’ product for business purchase, and 2 in 5 small businesses would spend more on business purchases and order more stock if they had access to additional funds.
Moula CEO Aris Allegos explained Moula Pay was developed to address gaps in the small business to small business payment cycle
“We know how hard it is for Australian businesses to access funding to support day-to-day operations and there’s an opportunity on both sides of the merchant and business customer relationship with Moula Pay.
“Merchants are able to outsource their credit management functions more cost-effectively than typically administering payment terms in-house. They’ve also opened the door to the significant pool of SMEs seeking to spend more on business purchases if they had additional funds and longer to repay.
“We’ve evolved our data-driven business lending expertise creating Moula Pay to address SME payments pain points, effectively doubling support for good Aussie businesses by backing merchants and simultaneously getting behind their good business customers as well.”
Moula Pay merchant Harry Pourounidis, Managing Director and CEO of Bambis Imports, said he is excited to be able to offer his customers new extended payment terms.
“Moula Pay will enable Bambis’ customers to order all the stock they need, when they need it, with less concern over cash flow. Most of our customers are retailers who often need to plan 6 months in advance to purchase inventory for their campaign cycles. Moula Pay allows Bambis to provide a greater number of customers with the ability to buy more upfront and sell more simultaneously.”
Established businesses operating across a wide range of categories, including wholesalers, manufacturers, retailers, trade and professional services can apply to become merchants. Moula Pay can be used by businesses to:
- Get stocked as a retailer
- Buy business equipment
- Pay for services
- Buy materials for projects