Buy Now Pay Later service Zip partners with Facebook to support eCommerce businesses

By Katherine O'Chee · · 3 min read
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eCommerce business owner on laptop

At a time when online shopping is surging and eCommerce has become an undeniably crucial avenue for reaching customers, two companies have joined forces to help Australian small businesses pay for their social media advertising with Buy Now Pay Later (BNPL). 

BNPL service Zip today announced it has teamed up with social media giant Facebook to allow small to medium enterprises (SMEs) to use Zip Business when funding their marketing campaigns on the platform. 

Zip Business gives SMEs access to unsecured business loans of up to $500k, with interest only charged on the amount you end up using (not the total amount you’re approved for). 

According to Zip’s co-founder Peter Gray, the partnership is part of efforts to address cashflow issues that might hinder many small businesses from taking their digital operations to the next level. 

“92% of small businesses believe they would have generated more revenue in the previous year if their cashflow was better,” he said. 

“Partnering with Facebook is an important step not only in the expansion of Zip Business, but in helping small business owners to capitalise on the recent growth in the eCommerce sector and to get ahead.

“With 14 million Australians using Facebook every day, the social network is an increasingly important advertising channel for small businesses.” 

The Zip-Facebook service is still in testing, with the roll-out to start initially with Facebook’s prepaid advertisers. 

This marks the second big collaboration for Zip Business, which launched back in August to offer lines of credit to SMEs on eBay.

Cashflow tips for your eCommerce business

Of course, there’s more to an eCommerce business than social media advertising. So what are some other ways to keep your cashflow healthy and intact? Whether you’ve just opened your digital doors or you’ve been in the business for a while now, here are a few more tips to have up your sleeve:

  • Apply for extra finance: Business investments don’t come cheap, so rather than trying to cover the entire expense out of pocket, a short-term business loan can help you spread the cost across a number of months. This finance option is taken out over a short period of time (say, 3-24 months), with fast approval speeds so you won’t need to wait for ages to hear back. Interest is usually paid daily or weekly instead of fortnightly or monthly. Besides Zip Business, there are plenty of other Australia-based business lenders to pick from, so compare your options below.

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  • About Great Southern Bank
    Business+ Vehicle Loan

    No upfront deposit and no extra security. Fixed rate for the life of the loan giving you cash flow certainty. Quick quotes and apply online in 20 minutes. Balloon payment available. Can be used for new and second-hand vehicles up to five years old that are bought from a dealership.

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  • About Lumi
    Unsecured Business Loan

    A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.

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    from 9%
    -
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  • About Bizcap
    Unsecured Business Loan

    Business Loans from $5,000 to $5,000,000 with high approval rates. Access to funds on loans up to $500,000 in as little as 3 hours. Cash flow friendly repayments and open minded offers.

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  • About Prospa
    Prospa Plus Business Loan

    Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.

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    3.5%
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  • About ScotPac
    Boost Business Loan

    Whether you’re looking for a quick cash boost for your business or are ready to invest in growth, ScotPac offers a range of unsecured and secured loans from $10,000 up to $500,000. For loan terms of 6 months to 3 years. No application or account keeping fees to pay. Funds available in 24 hours or less once approved. Repayment options available.

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  • Access your product lineup: Think of this as a ‘health check’, where you’re evaluating all of your current goods and services to identify which ones aren’t selling well despite being expensive to make. Sometimes less is more - so if you don’t see a clear, cost-effective way to help the product perform better and enhance your brand, then it may be time to let it go. This is an easy way to cut down on expenses without affecting the core of your business too much.
  • Expand your checkout options: Online shoppers are getting savvier by the day, with many now embracing payment methods beyond just the standard credit card or debit card. Think: PayPal or BNPL services like Afterpay and ZipPay. Part of generating more income is giving your customers more choice when it comes to paying. So while some of these payment gateways may come with a merchants fee, it could be a small price to pay to give yourself a competitive edge over other eCommerce businesses.
  • Improve your online and offline support: When your service isn’t face-to-face, it can be hard to build trust with your customers and retain their loyalty, which is why having good communication via other means is an absolute must. That means being able to support your customers over live chat, email or phone whenever they encounter an issue or concern - an area of investment which shouldn’t be overlooked, as it could save heaps of money and trouble in the long run.

For more tips, read our article on how to boost business cash flow during challenging times, like COVID-19.

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