FASHIONGO Unveils The First Dynamic Net Terms for Wholesale
Dynamic Net Terms disrupt traditional binary qualification by adjusting terms and payments dynamically to individual business needs, offering greater fund accessibility and flexibility
LOS ANGELES–(BUSINESS WIRE)–FASHIONGO, the leading online B2B wholesale marketplace that enables the fashion industry to connect and discover new opportunities, today announces Dynamic Net Terms, an unrivaled tailored B2B net terms solution aimed to widen access to funds to a broad range of retailers and ignite their business growth amidst a turbulent and ever-changing economic climate. Available March 18th, 2024 to all FASHIONGO retail buyers, this solution is the first of its kind for the traditionally underserved wholesale buyers that offer dynamic net terms and payment options which adjust to each individual’s profile and needs.
FASHIONGO is tackling the challenge of traditional payment norms that have alienated many SMB businesses with stringent qualification criteria of an outdated binary “yes they qualify” or “no they don’t” decision model to be approved for funds. These practices disregard the true creditworthiness of smaller boutiques and specialty retailers resulting in lower approval rates ranging from 5%-15% due to limited data sources. Through Dynamic Net Terms, FASHIONGO is paving the way to a novel approach to traditional net terms approvals. Uniquely customized based on the individual business profile and financial history, buyers who may not qualify in the traditional net terms underwriting process, FASHIONGO would qualify those buyers to either net 60, 45, or 30 days with zero penalties and late fees. FASHIONGO will ultimately maximize cash for all by targeting an approval rating of 5-6x times above the industry standard, opening up greater access to funds.
Beyond the accessibility of Dynamic Net Terms lies its payment flexibility. Buyers can effortlessly use both net terms and credit cards together for a single order, giving them the freedom to pay their way. This innovative approach supports businesses to grow their inventory by enabling them to place more substantial orders and pre-orders by combining different payment methods.
In an effort to bolster buyers’ purchasing power on FASHIONGO, Dynamic Net Terms automatically increases buyers’ credit as they continue to build their order history and maintain on-time payments on the FASHIONGO platform.
FASHIONGO, with over 20 years of B2B expertise, has partnered with Balance, a leading fintech company, that specializes in addressing the comprehensive financial requirements of B2B businesses. Global enterprises use Balance to accept, finance, and manage B2B payments digitally. FASHIONGO’s extensive understanding of the retail business purchase journey and needs, together with Balance’s risk evaluation parameters and B2B-first payment processing has resulted in a level of payment flexibility never before possible for online retailers. Unlike traditional fintech and online wholesale platform approaches, FASHIONGO’s Dynamic Net Terms focuses on understanding the customer’s purchase journey and providing innovative solutions to address real needs and demands.
“Dynamic Net Terms is not just a payment solution; it’s a catalyst for growth, designed to empower retailers who have historically been underserved,” says Paul Lee, CEO of FASHIONGO. “Our commitment remains in supporting our buyers and the wholesale ecosystem at large in an impactful way by broadening access to critical funds for smaller retailers, thereby increasing their purchasing power on the FASHIONGO platform. We understand that retail businesses of all sizes matter and are equally valuable in this economy. Buyers shouldn’t have to manage a business on yes or no. We are taking on the costs to deliver this game-changing solution, investing on behalf of both buyers and vendors so they can ignite their business growth.”
Bar Geron, CEO of Balance, adds, “The launch of Dynamic Net Terms, powered by Balance’s Zero Decline™ model, is critical to support FASHIONGO’s mission of providing solutions for all customers, not just a select few. To do this, we knew it had to start with a holistic credit and payment offering. Net 30 or Net 60 may be industry standard but they don’t begin to cover all the use cases for what buyers can be approved for. Thanks to The Zero Decline™ Model, buyers on FASHIONGO will be given a number of both real-time and deferred payment options. Our focus is on enabling FASHIONGO to build a platform that facilitates the growth of all retailers in online wholesale purchasing, overcoming the limitations of the existing payment solutions today.”
FASHIONGO is no stranger to innovation. For over 2 decades, FASHIONGO has been at the forefront of empowering businesses by leveraging rich data, deep industry insights, and innovative approaches to its tools and solutions. FASHIONGO remains committed to continually investing in solutions that are most impactful to success for the entire industry. Dynamic Net Terms will catalyze growth and empower retail buyers with greater purchasing power to position them for success in an ever-changing and turbulent retail landscape.
To find out more information about Dynamic Net Terms, visit here.
About FASHIONGO
FASHIONGO is the leading B2B wholesale online marketplace that enables the fashion industry to connect and discover new opportunities. Established in 2002 in the heart of the Los Angeles Fashion District, FASHIONGO supports the global wholesale industry to buy and sell the latest trends in fashion & lifestyle on a one-stop platform. With thousands of brands and close to 1 million registered retailers, FASHIONGO provides powerful tools, best-in-class service, and insightful data. Driven by technology, FASHIONGO is how buyers and sellers of all stages shop smarter, sell more, and grow faster. FASHIONGO is part of NHN Global.
About Balance
Balance is the leading financial technology company that helps mid-market and enterprise brands, distributors, and marketplaces at every stage of their business transactions. With a foundation built on years of payment expertise, Balance provides sellers with an all-encompassing suite of software and APIs, fostering seamless digital trade in goods on a global scale. Merchants leveraging any of Balance’s B2B products, including B2B Payments, Digital Trade Credit, AR Automation, and Marketplace OS, experience growth in revenue and profitability. For buyers, Balance ensures a frictionless payment experience that not only cultivates loyalty but also boosts purchasing power. For more information, visit getbalance.com.
Contacts
Natalia Dinsmore
Head of Communications
[email protected]
