Why Zip’s new business plan can help your business prepare for what’s next

It’s imperative that small businesses are prepared for and have the stock on hand to facilitate a surge in buying: and it’s Zip’s mission to help them get there.

If there’s one thing small-business owners are reaching out for at the moment, it’s some support and understanding.

The last 18 months have been tough, and ventures that may have taken off under different circumstances have collapsed under the weight of social uncertainty, restrictive trading and, in some cases, a complete inability to function in the current environment.

But, as Australia steps closer to a reopening date the retail industry is due for a surge in spend: online has managed to keep many afloat, but, if the end of past lockdowns are any indication, a flood of in-store spending is likely just around the corner.

It’s imperative that small businesses are prepared, and have the stock on hand to facilitate a surge in buying, and it’s Zip’s mission to help them get there.

The finance company recently unveiled a new product – buy now, pay later designed specifically for small businesses – which aims to help SMBs get back on their feet and trading, while also helping to manage their cashflow by spreading larger purchases over a period of time.

“Zip was founded around the idea of helping connect a buyer and seller around that golden moment of checkout,” said Zip Business’ General Manager Geof Alexander.

“What we’re doing now is an extension of that. We’re taking the benefits that we already give to individual customers, and extending them to small businesses.”

The Zip Business Trade product is always interest free, and businesses can repay purchases of up to $3000, while the Trade Plus product allows up to $150,000 in purchases to be repaid over the course of four monthly instalments.

According to Alexander, 70 per cent of Trade applicants get a decision made in minutes, while Trade Plus users will have a decision made within 24 hours.

And, it’s able to be used anywhere that accepts Visa payments with a Trade Plus account.

“If you have an outstanding invoice that you need to pay, for example, you can forward that to us and we’ll pay that on your behalf and give you an extended [payment option],” Alexander said.

“It takes the benefits of our consumer product, and expands them out to hit on what is actually needed for businesses right now.”

Many businesses are under pressure in the current environment to pivot to a more workable model – be it a bar that has started to offer take-out food in order to keep some cash coming in, or a pureplay business looking to expand its operations due to demand – and this product allows them to do that, said Alexander.

“Small-business owners are entrepreneurial. They’ve taken a risk, it’s probably their passion, and they’re seeking out these opportunities,” Alexander said.

“We want to support these [business owners]. We want to help them with cashflow control, and provide them with the ability to get paid and connect to our two and a half million customers.”

And, the products can also take away some of the busy work associated with trade payments by making the overall act of buying something for a business much simpler and easier for both parties.

“It allows merchants to bring all their expenses together, and cut out what’s not a core part of their business – which is underwriting, trade accounts, and collecting on accounts,” Alexander said.

“For us, that’s what’s really exciting.”

To learn more about how Zip Business Trade or Trade Plus could help your business expand, pivot, or prepare for the year ahead, click here.