Understanding B2B Financing and Self-Serve Financing:

B2B financing refers to the provision of credit to businesses by other businesses or financial institutions, enabling buyers to make purchases and pay for them over time. Self-serve financing, in a similar vein, allows customers to access financing options directly through an online platform, facilitating seamless and convenient transactions. Both options play a crucial role in boosting sales and promoting business growth.

Benefits of B2B Financing and Self-Serve Financing:

• Improved Cash Flow Management: Businesses can conserve their working capital and allocate it to other critical areas such as expansion, R&D, or marketing. Buyers can access the products or services they need without depleting their cash reserves, enabling them to maintain a healthy cash flow.‍
• Increased Sales and Revenue: B2B financing and self-serve financing eliminate financial barriers for potential customers, resulting in higher conversion rates. Businesses can reach a wider customer base, including those who don’t have the means to purchase upfront by offering flexible payment options.‍
• Enhanced Customer Satisfaction and Loyalty: Buyers appreciate the convenience and flexibility of financing options, leading to higher customer satisfaction. Providing accessible and hassle-free financing options establishes trust and fosters long-term customer relationships.‍
• Competitive Advantage: B2B financing and self-serve financing differentiate businesses from competitors by offering a value-added service. Companies that embrace these financing options position themselves as customer-centric and forward-thinking and accommodating, attracting more clients.

Example: Keeping the money moving

Let's consider Company NewCo, a software development firm specializing in enterprise solutions. They wanted to upgrade their infrastructure by investing in advanced servers and software licenses, which would require a substantial upfront investment. However, ongoing operational expenses limit its available cash flow.

By purchasing from a vendor who utilizes B2B financing from a trusted provider like Vartana, NewCo can acquire the necessary technology and pay for it over time. This move allows them to preserve their cash reserves and invest in other areas crucial to their business growth. NewCo’s infrastructure is now improved and they also have the financial flexibility to pursue marketing campaigns, hire additional talent, and expand its customer base.

What’s Pushing the B2B Financing Trend?

In today's digitally-driven marketplace, businesses must align with evolving consumer expectations to remain competitive. Aside from the benefits listed above, two macroeconomic reasons for this shift may be:

• A changing economic landscape: Uncertain economic conditions and fluctuating market dynamics have prompted businesses to seek alternative financing options. B2B financing provides stability and flexibility, mitigating the risks associated with economic volatility.
• Adaptation to modern consumer expectations: As technology advances, buyers expect frictionless purchasing experiences, and the expectation is now that purchasing a high dollar product should fit the needs of the buyer, not the needs of the seller. B2B financing solutions align with the evolving customer expectations and enhances the overall buying journey for any customer.

Why Buyers are Willing to Pay Financing Fees:

In B2B financing, financing fees refer to the costs associated with accessing and utilizing the financing services provided by the financing provider. These fees are typically applied total cost of the loan in exchange for the benefits and convenience of accessing funds for their purchases. So how do the benefits outweigh the cost?

• Accessibility and convenience:

Buyers understand that financing fees are a small price to pay for the ease and convenience of accessing products or services immediately. Non-traditional borrowing alternatives, such as Factoring or ARR financing, often involve extensive paperwork, stringent eligibility criteria, and longer processing times.

• Flexibility

Financing fees are often outweighed by the flexibility of payment terms, enabling buyers to tap into future budgets and spread costs over a manageable period. Customizable repayment schedules allow businesses to align their payments with their cash flow, minimizing financial strain.

• Speed and efficiency

Self-serve financing has one major leg up over traditional financing in its ability to expedite the buyers approval processes, allowing buyers to make quick purchasing decisions. Businesses can secure the funds they need promptly, accelerating their growth potential by removing offline financing hurdles.

‍

Why Vartana

Vartana has established itself as a leader in the field of B2B financing, backed by extensive industry expertise. A deep understanding of various industries enables tailored financing solutions for businesses across a myriad of sectors. This expertise allows Vartana to provide customized financing options that align with the unique requirements of each business and includes:

• A Seamless Digital Experience: Vartana offers a state-of-the-art digital platform that simplifies the B2B financing process. Through an intuitive interface, businesses can complete applications quickly and easily access funding with minimal effort. This process enhances efficiency, saves time, and enables companies to focus on their core operations.‍
• CRM Embedded Financing Options: The Vartana checkout experience embeds an a sellers SFDC, Microsoft Dynamics or Hubspot CRM to provide sellers access to real-time financing options when they need them most–right at the point of sale. With Vartana, sellers have access to pay now, pay later (defer payment up to 120 days) and pay in installments (monthly, quarterly, bi-annual). This flexibility at checkout makes closing a high dollar transaction easier than ever before.‍
• Competitive Rates and Flexible Terms: Businesses require financing solutions that are both affordable and flexible. Competitive rates and flexible payment terms allow businesses to access the necessary funds without burdening their financial resources. Transparent and fair pricing ensures businesses make informed decisions and choose options that align with their budget and financial goals.‍
• Commitment to Customer Success: Vartana prioritizes building long-term client relationships and dedicates itself to customers' growth and prosperity. Our team of financial experts provides personalized support and guidance throughout the financing process, helping businesses navigate hurdles and make strategic decisions.

How Vartana Changes the B2B Game:

Let's imagine Company TechPro, a tech hardware manufacturer that specializes in high-performance laptops and computer systems. It recognized the growing demand for its products from hospitals, dental offices and urgent care facilities.

To cater to these customers and boost sales, Company TechPro partnered with Vartana to provide B2B financing options throughout the sales process, not only at the end of a sale. Buyers can now choose flexible payment plans, or customized financing terms based on their needs and financial capabilities.

This initiative proved highly successful for Company TechPro. Healthcare providers rely on the latest technology to provide the best possible care and they are used to payment plans to access premium hardware without a significant upfront investment. The availability of B2B financing options empowered these customers to make a purchase, resulting in increased sales and revenue for Company TechPro.

Moreover, the financing options offered by Vartana allowed Company TechPro to showcase its commitment to customer satisfaction and flexibility. By understanding the financial restraints faced by their target audience and providing tailored financing solutions, Company TechPro gained a competitive edge in the market and solidified its position as a trusted hardware provider.