Invoice financing: buy now, pay later

Pay Later is a payment option that allows you to acquire products or services immediately and defer payment to a later date. This can be in the form of instalments or a later one-time payment.

Pay Later is often offered in online shopping and can help manage larger expenses without having to pay the full amount upfront.

The time until instalment credit is credited to your account can vary. Typically, it takes between a few days and a week from application to payout. This depends on the speed of credit review, completeness of your documents, and your bank's processing time.

At Qonto, the approved amount is immediately available in your bank account, allowing you to use it directly to settle invoices.

With Pay Later, eligible users can directly finance and pay incoming invoices, even if the Qonto online business account is not sufficiently funded. Here's how it works:

- the available financing limit is visible in the Qonto app under Financing → Pay later;

- you can pay invoices in instalments from €150. The maximum financing amount is €50,000, but it may be lower depending on creditworthiness and individual conditions;

- after electronically signing the instalment payment contract, funds are immediately available. You can use them in the Financing → Pay later section or directly when paying a supplier invoice via transfer;

- repayment is made in 3, 9, or 12 equal monthly instalments (depending on the chosen term), automatically debited from your Qonto account. The first instalment is due 30 days after payment, the second after 60 days, the third after 90 days, etc. The monthly interest rate starts from 0.62% and is applied to each instalment;

- your eligibility and credit limit are regularly reassessed based on your account data and repayment capacity.

Companies meeting the following criteria can apply for the Qonto instalment credit:

- you have been a Qonto customer for at least 6 months;

- your company has been registered for at least 9 months;

- the company is based in France, Italy, Germany, or Spain;

- two-factor authentication (2FA) is activated in the Qonto application.

Additionally, Qonto regularly calculates the credit limit for instalment payments based on account data. Eligibility must continuously be maintained to use the feature. Qonto may revoke access if the company is, for example, seized for debts or the business account is not funded at repayment time.

Alternatives to an installment credit include:

- overdraft credit or current account credit (overdraft loan);

- business leasing;

- factoring;

- crowdlending or crowdfunding.

Each of these financing forms has specific pros and cons, which should be weighed based on financial situation and need. Overdraft credits offer quick access to funds but often have higher interest rates. Leasing is ideal for using vehicles or equipment, while factoring allows you to obtain immediate liquidity through the sale of receivables. Crowdlending offers financing through a variety of private investors and can provide a flexible alternative.