Buy now and pay later. How does that sound?
A Black-owned fintech company, Novae L.L C, is offering Buy Now, Pay Later (BNPL) services to online and offline merchants under the brand Novae financing.
The move by the company is to allow entrepreneurs and customers to make purchases and pay later as part of its contribution to help fight the inequality minority entrepreneurs face, according to the firm’s CEO Reco McCambry.
“If millions of people can finance a college education to get a job, then why can’t the average entrepreneur finance a course to help them excel in their business?” COO Shaneé McCambry said in a statement. “This will make life-changing information more accessible, the goal is to help customers invest money now, so they can make money later and pay off the debt early.”
According to a report by BNPL giant Klarna, businesses which add the option of Buy Now, Pay Later to their online store usually see that at least 35% of their customers are more likely to make a purchase and spend averagely 45% more.
Also, Novae’s BNPL moves fall in line with McCambry’s pledge to make access to finance more affordable for Black and minority entrepreneurs who historically struggle to raise money to invest in their careers, businesses, homes, family, and education due to decades of discrimination and oppression.
“Financing up to $100,000 for consumers depending on the industry, Novae Financing approves consumer applications with credit scores as low as 515 and offers 6, 12, and even 18 month same-as-cash (no interest) options,” the company said in a statement.
A report by Guidant Financial has observed that the biggest challenge faced by 38 percent of African Americans includes a lack of capital and cash flow. However, Novae CMO Haziq Ali said that his outfit was doing more than just finance.
“This is reparations preparation,” said Ali. “If we have nothing but emotion and passion and no economic plan—we end up like Haiti. We all know the middle class is in danger, but awareness isn’t enough—so Novae’s plan is to prepare our people for home and business ownership excellence.”
The move, said to be the first of its kind in the industry, also offers access to educational courses and information to help entrepreneurs succeed. Thus, Novae’s focus is to approve trainers, speakers, coaches, and consultants as merchants to finance its high-ticket programs to help entrepreneurs get their businesses off the ground and grow.