Amazon was secretly working on its innovative solution to attend to the customer’s emergency needs. Recently, Amazon began rolling out its first buy now, pay later checkout options for small business owners. Under this facility, millions of buyers would benefit from the service.
Company partnership with Affirm will expand in other verticals of the firm such as Amazon Business, E-commerce platform, and many others.
After the official announcement from Amazon, the share price of Affirm jumped over 19% in a day. The company serves large enterprises and private sector companies to acquire new customers. Service has been tested in many countries. Thus, the partnership between Affirm and Amazon would help both companies to serve customers with better products and services.
Affirm offers a loan against your purchase, which you can pay in easy installments. Every buyer would be eligible for the loan, ranging between $100 to $20,000, depending on your credibility. The service is primarily designed for sole proprietors and small business owners and a single person as well.
Facility adoption shows that the demand for such loan facilities is considerably high. Fintech features exploded during the pandemic because people were struggling with the fresh cash flow in the business.
However the business had the potential to serve millions of customers, but there were times when Affirm was going through a breakdown. Businesses saw a rapid drop in adoption, and investors were skeptical about future growth.
But as we see, the services are kept 100% transparent compared to traditional credit cards. Because of this point, the customers became more loyal to the new facilities offered by Affirm. Furthermore, the interest rate was much lower than credit cards, making it more convenient to take a loan and pay it back in time.
All of these features made the Affirm services more impressive. Businesses going through financial stress could benefit from the excess cash using the services.
Small businesses are the worst hit when the market suddenly breaks down. We mostly hear from small businesses that they produce more debt than their cash flow. It is tough to manage cash flow when the demand is low.
Joining Affirm loan facilities keeps you eligible for the immediate cash supply. Instead of using credit cards for making urgent payments, you can opt for a small loan to deal with short-term payments. Credit card companies are charging hefty interest on the EMI. Instead, a loan from Affirm comes with a pay-over-time facility.
Amazon’s business was started back in 2015. The company began selling retail products and office supplies with the bulk purchase facility. The division has now achieved the milestone of $35 billion in sales. Also, the company has more than 6 million customers globally.
The customer is given the option on the payment page to pay the product amount with the Affirm. Once the customer is approved, they can pay the total amount in the installment and choose three to 48 months. The company charge interest rate between 10% to 36% on an annual basis. Also, Affirm does not charge late fees, and there is no hidden charge above the price disclosed on the payment page. You pay what you see during the payment.
The final loan amount allowed to the customer is based on their purchase habit and ability to repay the installment. There will be a limit on how much installment or the amount is allowed per person.
The local financial companies need more essential features, and they make the credit facility more complicated. You may realize the hidden charges and add on interest rate after taking the loan, which may result in frustration. Because now you have to pay the company additional charges for the small amount you have taken to support your business.
Also, the long documentation process, branch visits, and many barriers are added to the credit facility. Banks only provide the loan once you reach their branch. Affirm is reducing the time it takes to get the loan with the instant dispatch facility. Thus, customer can fulfill their emergency cash need and help their business to grow. It would be helpful to manage their cash flow and stay ahead of the curve.
Ties between the Affirm and Amazon will open new doors to small businesses and proprietors. The relationship is crucial for the development of the economy and offers small businesses more chances to sustain into the rising competition.
Next time you buy something from the Amazon store, check the Affirm buy now pay later options. Remember that the option is currently given to the small business owners and the individuals who run the proprietorship company. Take advantage of the facility and grow faster.
