Study shows more than half (53%) of Canadian business owners are considering new financing options
Tabit — Canada’s first B2B Buy-Now-Pay-Later (BNPL) solution offered at point-of-sale — launches, bringing the consumer check-out experience to the business to business (B2B) space. By partnering with suppliers of all sizes, Tabit helps provide small businesses with flexible and easily accessible payment options by integrating a credit offering at point-of-sale. Tabit addresses a gap in the alternative lending market in Canada, building on the strength of an industry seeing explosive growth internationally, and offering a unique credit option for a digitally-savvy generation of buyers.
“Bank loans for small businesses are notoriously hard to get. It is also very difficult for many small businesses to obtain credit from their suppliers. Tabit was created to fix that”
“Bank loans for small businesses are notoriously hard to get. It is also very difficult for many small businesses to obtain credit from their suppliers. Tabit was created to fix that,” said Merchant Growth and Tabit Founder & CEO, David Gens. “We are seeing a new generation of small businesses come to the forefront. They want flexibility and a seamless digital experience, just like they’re experiencing as consumers. These small businesses increasingly value point-of-sale BNPL solutions and see these payment options as a significant growth driver — allowing them to increase their purchasing power without needing capital up-front.”
A recent survey, conducted by Tabit in conjunction with Angus Reid Surveys, found that over half (53%) of Canadian small business owners would consider a financing solution at checkout where payment installments are made over time. As the pandemic and market fluctuations keep buyers and sellers on their toes, Tabit’s entry into the Canadian commercial lending/payment landscape offers companies of all sizes a digital-first solution.
Additional key survey findings include:
- Young business owners (18-34) are twice as likely as those aged 35+ to say they would “definitely” consider using this type of financing solution.
- Business owners of companies with 10+ employees are twice as likely than those with smaller employee bases to say they would “definitely” or “probably” consider this financing solution.
- One-in-three (34%) business owners say this type of financing solution would make them more likely to make larger purchases for their business, and this rises to 44% among younger respondents (18-34) and 42% among respondents at larger companies.
“When it comes to buying inventory and other critical purchases businesses need to manage and grow, there’s been a clear lack of commercial payment options,” said Tabit Executive Vice President, Elias Beaino. “Tabit approves buyers instantly, turning the purchase process into an easier decision. This also solves the counterparty risk issue for the seller, making the Tabit payment option a ‘win-win’ for both buyer and seller.”
Leveraging Merchant Growth’s data and 12-year history of underwriting small business risk, and supported by a recent equity raise of $4.1M, Tabit eliminates the traditional credit risk faced by suppliers, offering a user-friendly application process that can generate approvals in as little as 30 seconds. The result is a mutually beneficial option for both buyers and sellers of all sizes across multiple industries. Tabit gives small businesses the same advantages as large businesses — helping them improve their cash flow and increase their purchasing power — and makes it easier for sellers to convert sales without the risk.