New York-based online banking company Ampla Technologies recently launched a new extended payment terms solution called Ampla Pay Later.
This comes after an acquisition of Upside Financing in the past two weeks that will allow Ampla customers to upload invoices.
Ampla investor of Infinity Ventures, Jeremy Jonker, Co-Founder and Managing Partner and Former SVP at PayPal, said moving into the BNPL space was a can’t-miss opportunity.
“We’ve seen buy now, pay later explode in popularity in the consumer space, but there is a unique opportunity to build leadership within the enterprise world, and this acquisition does just that. The opportunity to scale this type of offering has never been more salient given the challenges brands face across their supply chain.”
How does it work?
- Ampla Pay Later syncs all your systems to pull the data they need to create your offer.
- You gain visibility into your inventory credit limit and the transaction fee to unlock payment terms ranging from 30 to 120 days.
- Ampla Pay Later pays 100% of your vendor invoices directly.
- Once your terms are up, you pay them back.
Users must have Ampla banking
Ampla is most known for its line of credit for financing inventory, marketing, and vendor payments. They also offer credit cards. However, to use their products, companies must have Ampla banking.
What’s in it for Ampla to pay 100% of invoices for you?
Mike Grillo, V.P. of Marketing and Communications for Ampla, said, “We charge a flat fee for each invoice that we pay on our client’s behalf, and it is a percentage of the total amount due.”
“Yes, there is an inherent risk with any lending platform. We’re confident because we are paying vendors that these brands need. If they don’t pay us back, they will get cut off from their manufacturers.”
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Ampla is confident in their clients, and the risk profile based on the default rate is very low single digits and the extensive underwriting for each. There is an extended wait list for Ampla Pay Later, and they will launch their new product in mid-December.
Spring delivery planned
They will be onboarding their new B2B clients between now and then. Ampla Technologies’ goal is to be ready-set-go for a busy Q1, especially for their customers manufacturing in China, meaning client purchase orders will need to be in for their spring delivery.
“Ampla is laser-focused on consumer products and brands. Because we focus on consumer brands, we know the vendor landscape and the risk profile attached to these brands. We offer this broader financial platform; getting extended payments terms from us and on our banking platform, they can apply for our charge card, and they could even use our growth line of credit if their needs grow upon the initial pay later,” said VP of Marketing and Communications for Ampla.”
