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How BNPL differs from bank loans and credit cards

Small businesses survive by being agile, but if you’re only relying on bank loans or credit cards for funding, you may not have the flexibility you need to compete. A buy now, pay later (BNPL) solution like hummpro provides an alternative.

Accessing finance has always been difficult for small businesses. Before COVID-19, around one-fifth of small businesses found it relatively difficult to access finance at competitive rates, and post-pandemic, it’s the number one challenge.

And despite pressure on banks to change their lending practices, there’s still an estimated $80 billion gap between the amount of credit that small businesses need and what’s available to them. As a result, many small businesses rely on personal credit cards to pay for business expenses.

It’s clear that small businesses need more access to funding, but should it really come from the traditional financial services industry? Some small businesses have started to question whether they actually want to take out a bank loan or sign up for a business credit card – even if they could get approved for one. 

When you take out a loan or sign up for a credit card, you’re locking yourself into a source of finance that could limit your ability to access capital down the road, and you could end up paying interest or fees even when you’re not actively using those funds. 

What you really want is access to flexible finance that you can draw on when you need to, but won’t impact your business or cost you anything when you don’t. That’s what you get with hummpro. 

Access to flexible finance

As a BNPL solution, hummpro gives you access to up to $30,000 in interest-free finance, which you can use for a wide range of business expenses, whether online, in-store, or via invoice. 

It only takes a few minutes to apply, and a virtual card will appear in your digital wallet as soon as you’re approved, so you can actually use your funds when you need them, instead of days or weeks later.

Unlike a loan or credit card, you don’t need to choose between minimum repayments that accrue a lot of interest or paying the entire balance, which impacts cashflow. With multiple repayment options, you’re always in control.

And the fee structure means you only pay for the service in the months when you use it, so you always know how much you owe.

Having access to finance is key to growing your small business, but even more important is access to flexible finance. Find out how you can get the best of both worlds with hummpro. 


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