Business buy now pay later.
Spread the cost of stock, equipment, software, supplier invoices and professional fees across instalments instead of paying in full on day one, so a single purchase does not absorb a month of cash flow.
Quick estimate
See an indicative repayment
Indicative monthly repayment
£4,500 to £5,625
Illustration only, based on a range of typical total costs. Actual pricing depends on trading history, sector, term, amount and credit profile, and differs between providers.
Buy now pay later in a business context means using a commercial facility to settle a purchase now and repay it across agreed instalments. The supplier is paid on normal terms while the business holds on to working capital.
It suits predictable, invoiced purchases where the benefit arrives before the full cost would otherwise be paid. These are commercial agreements for business use only, assessed on trading and affordability, and the full amount remains contractually due.
Best suited for
- Stock and seasonal inventory buys
- Equipment, tools and fit-out purchases
- Annual software or subscription renewals
- Large supplier invoices and professional fees
How it works
Tell us the purchase
Share the supplier, amount and what the spend is for, along with a few details about the business.
Underwriting sizes the facility
Bank conduct, turnover and existing commitments are reviewed to set an instalment plan the business can service.
Settle and repay in stages
The purchase is funded and repaid across the agreed instalments set out in the written terms.
Eligibility at a glance
A short list of the information commonly considered. Eligibility and available terms depend on the individual business and facility.
- UK-registered limited company or LLP
- Trading for at least 6 months
- A UK business bank account
- Purchase is for legitimate commercial use
- 3–6 months of business bank statements
- No active formal insolvency proceedings
Careful with your data, clear about your terms.
Commercial lending sits outside the FCA perimeter, so the protections of a regulated agreement do not apply. We set out how we work so you can judge it for yourself.
Your data is used to assess your enquiry, never sold or passed on for third party marketing.
Every page and every submission is served over TLS.
Where used, access is read only through FCA authorised providers and can be revoked at any time.
Finance for UK registered businesses and business purposes, not consumer credit.
The initial form is an enquiry. If a credit search is needed later, its type and impact will be explained first.
Total repayable, term, fees and any security stated in writing before you sign.
How pay later works between businesses
In a B2B arrangement, a funder settles the invoice with the supplier and the buying business repays across instalments. The supplier is not waiting on payment, and the buyer keeps cash available for payroll, rent and day to day trading.
The commercial logic is timing. Stock bought in March may not convert to revenue until June. Spreading the cost across that window lines the outflow up with the income the purchase is meant to generate.
What it actually costs
Cost is usually expressed as a fee or a rate applied across the instalment period. A short plan can look cheap in percentage terms because the term is short, while the same amount over a longer facility may cost more in total but far less each month.
Read the written terms for three figures: the total repayable, the instalment amount, and any charge for settling early or late. Comparing only the headline percentage between different term lengths is misleading.
There is no universal cheapest option. A large equipment purchase may be better served by asset finance, a recurring cash gap by invoice finance, and a card heavy retail business by a revenue linked facility.
When to use something else instead
If the purchase is a long life asset, asset finance is usually a closer fit because the term can be matched to the useful life of the item rather than a short instalment plan.
If the pressure comes from customers paying late rather than a single purchase, invoice finance addresses the cause directly by releasing value from unpaid invoices.
If the need is general working capital rather than one identifiable purchase, a short term facility or a fixed term business loan gives more flexibility over how funds are used.
Pay later compared with other UK business funding
| Feature | Business pay later | Asset finance | Invoice finance |
|---|---|---|---|
| Best for | Known purchases and invoices | Equipment and vehicles | Unpaid customer invoices |
| Repayment shape | Fixed instalments | Fixed instalments | Settled as invoices are paid |
| Typical term | 1–24 months | Matched to asset life | Rolling facility |
| Security | Depends on offer | Usually the asset itself | The invoice ledger |
| Cash flow effect | Spreads a single cost | Spreads an asset cost | Shortens the payment wait |
Explore by need
What do you need funding for?
Bridge a cash flow gap
Cover a quiet month or a slow paying customer.
See options →Pay a VAT or tax bill
Spread a large HMRC bill over a set term.
See options →Buy stock or equipment
Spread the cost of a known purchase.
See options →Card takings business
Repayments that follow your card sales.
See options →Grow online revenue
Funding linked to monthly revenue.
See options →Expand or hire
Fixed monthly repayments over a set term.
See options →Frequently asked
What is buy now pay later for businesses?
It is a way of spreading the cost of a business purchase over a set number of instalments instead of paying the full amount at once. In a B2B setting it usually works through a finance facility that settles the supplier and collects repayments from the business.
How is it different from consumer buy now pay later?
Consumer schemes are regulated retail products offered at checkout to individuals. Business arrangements are commercial agreements between companies, assessed on trading and affordability rather than personal credit alone.
What can be spread this way?
Common uses include stock, equipment, software subscriptions, professional fees, marketing spend and supplier invoices, where the cost is known and the purchase supports trading.
Is it cheaper than a business loan?
Not automatically. Short instalment plans can look inexpensive because the term is short, while a longer facility may cost more in total but less per month. Compare total repayable and monthly impact together.
What do I need to apply?
Usually company details, three to six months of business bank statements, director identification and details of the purchase or supplier invoice being funded.
Related guides
Authoritative UK references
Independent sources cited on this page.
- British Business Bank, finance options British Business Bank
- GOV.UK, business finance and support GOV.UK
- FCA, Register of authorised firms Financial Conduct Authority
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