US-based enterprise-grade payment processing and ledger infrastructure provider Episode Six has launched the Business Now, Pay Later solution. The new solution reportedly seeks to enable commercial banks to secure new revenue streams by fulfilling the working capital needs of small and medium-sized enterprises (SMEs) via customised instalment offerings within their business banking channel.

As cited in the official press release, a 2022 report on world payments carried out by Capgemini revealed that 89% of SMEs consider that they are not receiving the right level of service from their primary banks and are exploring the possibility of switching to a new provider. By introducing its latest Business Now, Pay Later solution, Episode Six banks on the current demand for more flexibility that SMEs express when it comes to the working capital solutions that they access. Even more to this point, the official statement further suggests that the economic downturns that ultimately led to rising rates are only strengthening the need.

What does the new Business Now, Pay Later offering entail? Business Now, Pay Later purportedly caters to the needs of SMEs by banking on the conventional Buy Now, Pay Later (BNPL) model and customising it for commercial banks and their customers. By leveraging it, financial institutions are expected to tap into an underserved market by providing SMEs products that can help them manage their cash flow. What is more, this offering is said to also enable banks to extend loan products specifically addressed to their clients’ needs and risk profiles.

As a direct result, it is anticipated that commercial banks will strengthen and grow their balance sheet. Business Now, Pay Later will purportedly allow banks to offer instalment loans to businesses at any stage of their buying journey. As underlined in the official press release, payments can be made no matter the method selected – real-time payments, ACH, wires, or cards.

The bank then sets and manages the repayment options, which vary depending on the need and risk profile of the customer. When it comes to the implementation of this latest offering, banks that want to do so without disrupting their infrastructures can reportedly leverage Episode Six’s TRITIUM platform. Earlier in 2023, it was revealed that First Fidelity Bank joined forces with Episode Six as part of an effort to launch a new BaaS solution.

What is more, the payments and banking infrastructure provider announced that it raised USD 48 million in a Series C funding round. .