B2B Buy Now, Pay Later Poses Threat to Small Business Bank Lenders

B2B Buy Now, Pay Later Poses Threat to Small Business Bank Lenders

This IDC Perspective looks at the changing face and disrupting forces of small business working capital lending. The key disrupters are fintechs that have digitized the legacy lending processes used by many banks. Small firms, especially new ones, face hurdles in obtaining working capital funding that is critical to operating an ongoing business. This document identifies B2B BNPL as an emerging threat to banks with small business client relationships and lists reasons why it will continue to grow on a global basis.According to Raymond Pucci, research director, Worldwide Consumer and Small Business Lending Digital Transformation Strategies at IDC, and coauthor of this document, "Banks that traditionally have provided small business working capital loans have been caught flat-footed by fintechs that have transformed small business lending. While B2B BNPL is a clone of the B2C version, B2B commerce represents a much larger global market opportunity for lenders."

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