Business lender Moula announce Buy Now, Pay Later product for business
Australian business lender Moula today announces the strategic evolution of its business lending portfolio with the launch of Moula Pay, a way for merchants to offer affordable payment terms to business customers, whilst getting paid upfront.
Solving merchants’ needs to meet the increasing demand for instalment-based payment terms, Moula Pay allows merchants to provide pre-approved businesses the ability to purchase up to $250,000 worth of goods and services, and removes their hassle of chasing debtors.
Merchants get paid upfront by Moula, and business customers benefit from improved cashflow by having 12 months to repay, with the first three months interest and repayment free.
Moula’s quarterly study of 500 business owners across Australia revealed that more than 40 per cent take longer than 30 days to pay, reinforcing the need for extended payment terms.
At the same time, the majority of business owners in the merchant category are struggling to administer extended payment terms in-house due to cashflow concerns, limited credit expertise and prohibitive overhead costs.
Moula CEO Aris Allegos explained Moula Pay was developed to address gaps in the SME to SME payment relationship dynamic.
“We know how hard it is for Australian businesses to access funding to support day-to-day operations and there’s 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.”
Bambis is a wholesaler of brands including globally recognised Salt&Pepper homewares and Curtis Stone cookware and kitchen collection.
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
In line with Moula’s commitment to lending responsibly, Moula Pay is only available to businesses with an active ABN or ACN, 6+ months in business and $5,000+ in monthly sales.