Francesco Burelli, Partner, and Malte Thom, Associate at Arkwright Consulting discuss one of the biggest current developments in the BNPL market - B2B payments, and whether they live up to their promises. The business-to-business (B2B) payment credit landscape has long been stable. Still, traditional lenders have neglected certain segments due to high service costs, risk concerns, and difficulties in addressing the needs of businesses often categorised under retail banking. Small-to-medium enterprises (SMEs), particularly micro and small companies, universally face challenges in accessing credit. B2B Buy Now, Pay Later (BNPL) solutions are gaining traction as potential disruptors – can they reshape how small businesses handle payments and financing?. In essence, B2B BNPL is a hybrid solution that blends traditional credit tools (including purchase-on-account, trade credit, and factoring) and makes them available through various channels, often as an Embedded Finance solution at the point of purchase

In March 2024, Hokodo secured a £83 million debt facility from Viola Credit, a global credit investment manager.