PYMNTS-MonitorEdge-May-2024

Tabit and Lenovo Partner to Offer B2B BNPL in Canada

Tabit  and Lenovo have partnered to offer business-to-business (B2B) buy now, pay later (BNPL) in Canada.

With this collaboration, Tabit’s B2B BNPL payment method will be integrated into Lenovo’s offerings so that the latter’s business customers can access fully automated financing at the point of sale, the companies said in a Tuesday (March 14) press release.

“With the world’s widest portfolio of technology products, Lenovo can provide solutions, software and services that small businesses can leverage to fulfill their potential — now with flexible payment options that allow businesses to invest in technology while managing their cash flow,” Lenovo Vice President, eCommerce North and Latin America Carlo Savino said in the release.

As PYMNTS reported in January, a spate of funding rounds and partnerships heralded a banner year for bringing BNPL to B2B payments.

While negotiating terms of 30, 60 or 90 days is about as old as business itself, it’s inefficient at best and an egregious drag on creditors’ cash flow at worst.

For firms selling to enterprise clients — and embracing BNPL as a payment option — there’s the benefit of being paid at the time of the initial transaction. For the buyers — the ones choosing to pay in installments — there’s predictability in the timing of cash outlays through deferred payments.

The new B2B BNPL solution announced by Tabit and Lenovo will enable Lenovo’s business buyers to get terms of up to 12 months, including a 30-day option at 0% interest, according to the press release.

Tabit’s solution leverages data and experience to eliminate the credit risk suppliers traditionally face, while also offering buyers an application process that is user-friendly and can be approved in as little as 30 seconds, the release said.

“Through our partnership with Lenovo we are proud to be offering an automated financing option for businesses at the point of sale,” Tabit CEO David Gens said in the release. “These past few years have been incredibly volatile, whether it be the effects of the COVID-19 pandemic or turbulence in financial markets, and quick access to financing is paramount in helping small businesses navigate these rapidly changing environments.”

This partnership comes just over a year after Tabit began operations and billed itself as Canada’s first point-of-sale (POS) BNPL offering for the B2B space.

PYMNTS-MonitorEdge-May-2024