Intuit Integrates Buy Now, Pay Later Option to Boost SMB Cash Flow

In an era where cash flow management is paramount for small and mid-sized businesses (SMBs), Intuit has partnered with Affirm to enhance financial flexibility. This multi-year arrangement will allow QuickBooks users to incorporate Affirm’s “pay-over-time” solution directly into their transactions, providing an innovative way to improve payment methods and boost customer engagement.

Managing cash flow proves challenging for many SMBs, with recent studies indicating that approximately 56% of these businesses are owed significant amounts due to unpaid invoices—averaging about $17,500 per business. Intuit aims to alleviate this burden through its collaboration with Affirm, presenting a practical solution for businesses that need to collect payments efficiently while offering their clients more flexible options.

David Hahn, Intuit’s EVP and GM of Services Group, highlights the significance of this integration: “By partnering with Affirm to bring native, pay-over-time functionality to QuickBooks, we are giving businesses a powerful new way to increase conversion and improve cash flow, while offering their own customers flexibility.” With this partnership, QuickBooks will not only streamline invoice management but also drive higher sales through improved payment options.

The practical implications of this new feature are immediate and compelling. Businesses that opt to use QuickBooks Payments will soon be able to offer customers the chance to split payments into manageable installments. Options can include plans with interest rates as low as 0% APR, allowing customers to spread their financial commitments over time without worrying about late fees or hidden charges. This functionality is designed to enhance customer experience, increase average order values, and ultimately lead to improved conversion rates.

Pat Suh, SVP of Revenue at Affirm, reinforces the value of transparent payment systems: “Integrating Affirm directly into QuickBooks Payments will give these businesses another lever for growth — offering customers a transparent, responsible way to pay over time while the business continues to get paid upfront.” Here, Affirm takes on the risk associated with lending, as they will manage applications, underwriting, and transaction approvals, freeing business owners from the complexities of maintaining payment plans.

However, while the integration promises numerous benefits, small business owners should remain mindful of some potential challenges. Implementing a new payment solution can involve time and adaptation, especially for businesses where owners or employees are not thoroughly familiar with financial tech products. It is crucial for business owners to ensure they leverage the system effectively to truly realize the benefits.

Despite the learning curve, the partnership poses an attractive proposition as Affirm’s pay-over-time offerings will be available for eligible U.S. QuickBooks Online customers who use QuickBooks Payments. With no additional setup required and immediate payments for businesses, many may find this a straightforward way to enhance their customer relations and increase cash flow mechanisms.

As businesses increasingly adopt digital solutions, the integration of tools that provide financial flexibility will likely be crucial for sustainability and growth. Thus, it becomes pivotal for small business owners to investigate how tools like Affirm can enrich their offerings while easing the pressure of cash flow concerns.

For more insights on this partnership and its implications, you can read the original press release here.

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This article, "Intuit Integrates Buy Now, Pay Later Option to Boost SMB Cash Flow" was first published on Small Business Trends

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