CareCredit - Women's Health April 2024

FashionGo Adds Net Terms Solution to B2B Marketplace

FashionGo has launched a net terms solution for buyers on its online B2B wholesale marketplace for the fashion industry.

The new Dynamic Net Terms solution is tailored to meet the needs of wholesale buyers — a segment that is traditionally underserved — and offers dynamic net terms and payment options that adjust to each buyer’s profile and needs, the company said in a Monday (March 18) press release.

“Buyers shouldn’t have to manage a business on yes or no,” Paul Lee, CEO of FashionGo, said in the release. “We are taking on the costs to deliver this game-changing solution, investing on behalf of both buyers and vendors so they can ignite their business growth.”

FashionGo’s Dynamic Net Terms uses each buyer’s business profile and financial history to qualify them for funds, according to the release. It will enable them to access net 60, 45 or 30 days, with no penalties or late fees. As buyers build their order history and maintain on-time payments on the FashionGo platform, Dynamic Net Terms will increase their credit.

This solution is meant to provide an alternative to the traditional net terms underwriting process, which often disregards the “true creditworthiness” of small boutiques and specialty retailers in the fashion industry, the release said.

FashionGo aims to attain an approval rating that is from five times to six times higher than the industry standard, per the release.

To deliver this solution, FashionGo partnered with Balance, a FinTech company that addresses the financial requirements of B2B businesses, according to the press release.

“Our focus is on enabling FashionGo to build a platform that facilitates the growth of all retailers in online wholesale purchasing, overcoming the limitations of the existing payment solutions today,” Bar Geron, CEO of Balance, said in the release.

PYMNTS Intelligence has found that new solutions like buy now, pay later (BNPL) could help small businesses overcome the complications common to B2B payments. BNPL offers many of the same benefits for B2B payments as it does for individual consumers, according to the PYMNTS Intelligence and Splitit collaboration, “Is BNPL the Next Driver for B2B Growth?

In another recent development, Balance said in January that it added a suite of products that span the B2B transaction lifecycle, from order placement to payment settlement, aiming to help brands and marketplaces reduce the inefficiencies and costs of business payments.

These products include artificial intelligence tools encompassing net terms assessment and financing, payment cost optimization and accounts receivable automation.