Resolve brings B2B net payment terms to e-commerce
As part of its formal spinoff from consumer lender Affirm, B2B e-commerce platform Resolve is launching automated payments that offer extended net terms for product buyers.
Characterizing traditional B2B financing as slow, inaccurate and time-consuming because of its reliance on e-mail, call centers, faxes and manual invoicing, Resolve says its payment automation will help provide faster business cycles and increases in sales.
Resolve assumes all repayment risk for approved clients, providing suppliers full payment, minus fees, as soon as an order is placed. It then manages customer billing and collections.
"Much of B2B e-commerce is still managed in archaic, outdated ways and this sector needs its tech moment in order to fully reach its potential," Affirm CEO Max Levchin said in a Tuesday press release. "Resolve's ability to power automated payment approvals and terms will help deliver on this promise of adoption and scale."
Levchin, a founder of PayPal, started Affirm more than five years ago to introduce consumer finance services for e-commerce merchants. The company has also dabbled in its own mobile payments schemes and accompanying plastic cards.
Resolve targets manufacturers, wholesalers and distributors as clients that could benefit by extending net payment terms to their customers.
Once a business completes an enrollment customized for business type and size, it can deploy Resolve and offer 30-, 60- or 90-day payment terms to customers. Buyers pay zero interest if accounts are repaid within the agreed-upon terms.
Resolve payment plans are offered at sub-credit card fees and can be integrated into both offline and online sales channels.
"Resolve made it easy for us to boost conversion, revenue and loyalty by offering extended net 60 payment terms," said Niclas Brandrup, founder and president of Hyperikon, after his LED-light manufacturing company began using Resolve.
"We now stand out in the marketplace because distributors know they can order more though us with fast, accurate financing decisions," Brandrup said in the release.