How to use BNPL for ongoing cashflow management

If you think buy now, pay later (BNPL) apps for small businesses are just for purchasing big-ticket items, it’s time to take a second look. They’re also valuable tools for managing your cashflow on an ongoing basis. Here’s how.

BNPL is often marketed as a new way to buy big-ticket items. Instead of having to save for weeks or months before you have enough cash to cover the cost, you can use a BNPL app like hummpro to buy what you need to run your business, even if you don’t have the full amount in your account. You can simply pay for it later, without accruing any interest in the interim. 

This is a significant improvement over traditional finance options like bank loans and even credit cards, which force you to choose between making big repayments to pay down your debt and minimum repayments that rack up interest. So it’s no wonder people tend to focus on this feature. But there’s another benefit of BNPL that’s worth noting: it can be a useful way to manage cashflow. 

Managing your cashflow

Many small businesses have their cashflow balanced on a knife’s edge, and it doesn’t take much – a sales slump, or a sudden increase in the cost of goods – to tip you into the red. Nearly half of small businesses in Australia have experienced negative cashflow, and it’s among the top four factors impacting small businesses in New Zealand. 

The implications of low or negative cashflow are serious. If you don’t have the funds to buy new stock, pay your staff, or replace a critical piece of equipment if it breaks down, it could be hard to grow your business – or even keep it afloat. Even more than profit, staying on top of your cashflow is critical to your success. 

One way to do so is by using a BNPL app like hummpro to pay for your everyday business expenses, such as software subscriptions, utilities, rent, office supplies, professional memberships, trade fairs, and other items. All your transactions within each month are bundled into a single balance, which you have at least 30 days to repay interest free. 

This makes it easy to keep track of how much money is flowing out of your business, so you can spot potential cashflow issues in advance and take steps to avoid them, such as deferring your repayment for a month, or splitting it up into smaller instalments over 6, 9, or 12 months. You can find out more about hummpro’s flexible repayment options here. 

It also gives you peace of mind. Rather than having to think about your cashflow every time you make a purchase, you can spend a little easier knowing that you have some breathing room if a trade partner is late paying their invoice, or a big bill unexpectedly comes due. It won’t impact your cashflow straightaway. 

If you’re looking for a less stressful way to manage your cashflow, try using a BNPL app like hummpro. 

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