Financial Leverage for Ukrainian Businesses: How Activitis is Developing B2B BNPL, Enabling Companies to Buy Now and Pay Later

Adequate and timely financing is the lifeblood of a business, according to the team at the Ukrainian financial company Activitis. The ideal entrepreneurial scenario is when an owner can cover all their company’s needs as quickly as possible without having to choose what to forgo due to a lack of funds.

The team at Activitis, where all specialists come from the banking sector, has always understood the necessity of sufficient business financing. That is why the company has focused on fast and beneficial credit products for small and medium-sized businesses (SMBs).

Activitis implements initiatives that enable Ukrainian SMBs to access financing through B2B installment plans, loans, and factoring. In January 2022, the team began developing the idea for a digital solution for businesses—B2B BNPL. With the onset of full-scale war in Ukraine, Activitis became even more convinced of the need to implement such a solution. In 2023, Activitis launched the digital B2B BNPL service eDilo, allowing businesses to buy from each other now and pay later. The ongoing war did not halt Activitis' ambitions, and with the support of the USAID AGRO Program, the online service WEAGRO was created—a specialized installment platform for agribusiness. "Buy now, pay later" is the guiding principle behind both eDilo and WEAGRO. More details on these services and their benefits for SMBs during wartime can be found in the Forbes BrandVoice explainer.

Convenient Factoring and Cashback – The Two Pillars of the eDilo Platform

Activitis defines its mission as providing innovative and convenient financial services for SMBs, which are the backbone of national economic growth. “The uniqueness of our business offerings lies in their collateral-free nature and the speed of financing,” says Viktor Vilchynskyi, Business Development Director at Activitis. “Collateral requirements can be misleading, giving a false sense of security in transactions. Often, a collateral-backed loan turns into a trap for the lender. That is why we offer non-collateral financial products that are fast, convenient, and economically effective.”

At the beginning of 2022, Activitis once again analyzed the financial services market and found that while there were plenty of BNPL solutions for individuals, there were no such offerings for businesses. Ukrainian companies also faced difficulties accessing financing for several reasons, one of which was the sluggishness of traditional lending: requiring bank visits, long approval processes, and excessive paperwork.

This led to the idea of Ukraine's first B2B BNPL solution. It allows selling businesses to quickly and conveniently carry out B2B transactions while enabling buying businesses to make purchases more easily, even with limited resources. Through collaboration with FINTECH PRO, the eDilo platform was launched—the first B2B BNPL service in Ukraine. Using factoring, it allows businesses to seamlessly sell B2B goods and services with deferred payments or installment options.

The national eDilo platform is designed for small and medium-sized businesses operating throughout Ukraine, except within a 50-kilometer zone of active combat areas. By joining eDilo, such companies can act as both sellers and buyers of various goods and services. A seller (eDilo partner) can be any manufacturing or supply company, or even a service provider that has been continuously operating for more than two years. The company must be engaged in B2B sales of goods or services and provide support and warranty services if required by the product.

A buyer can be any representative of a Ukrainian SMB who wishes to purchase goods or services from eDilo's existing partners. The purchasing process is no different from regular business transactions, except for the inclusion of a payment schedule in the sales contract.

How the eDilo Platform Works

• Stage I. The business buyer selects a product or service from the seller’s website and opts for deferred payment or installment payments via eDilo.
• Stage II. The seller submits an application to eDilo specifying the buyer and the required installment amount.
• Stage III. Within 30 minutes, Activitis informs the seller whether the transaction can proceed.
• Stage IV. The seller finalizes the sales contract with the buyer, including a payment schedule. The seller receives payment from Activitis the same day, while the buyer pays Activitis according to the agreed installment schedule.

To qualify for installment payments, the buyer must provide consent on the eDilo platform for personal data processing. This ensures transparency and confirms the buyer’s purchasing capacity.

Infographic on Four Installment Payment Options Based on These Data:

Benefits for the Seller Company:

Increased Sales Conversion. The likelihood of a customer completing a purchase increases with the ability to buy goods or services on installment and pay later.

Attracting New Customers. Lowering financial barriers helps draw more customers to the business and makes its products more accessible.

Higher Average Transaction Value. Business customers who can defer payments tend to purchase 30% more and opt for higher-priced goods or services.

Optimized Financial Management and Improved Customer Loyalty. The ability to delay payments allows clients to manage their finances more efficiently, reducing negative impacts on cash flow. This creates a positive experience and fosters long-term B2B relationships.

“Using eDilo is a key competitive advantage for a Partner business, as the service helps boost sales and increase customer loyalty.”

Benefits for the Buyer Company:

Maintaining Liquidity and Optimizing Cash Flow. The ability to purchase goods or services now and pay later helps businesses preserve liquidity.

For example, a business with a limited procurement budget can use eDilo to make necessary investments while preserving some of its funds for future needs.

Deferred payment for goods or services helps businesses optimize their financial flow by spreading acquisition costs over a longer period.

Increasing Purchasing Power and Stimulating Business Growth. SMB representatives can make more purchases or choose higher-quality and more expensive goods and services without worrying about negative impacts on their balance sheets.

For example, if a business manufactures finished products, it can use eDilo to select more expensive but higher-quality materials, enhancing the final product's quality and significantly improving its market competitiveness.

Such options foster growth by enabling enterprises to invest in expanding or improving their operations, helping national producers manage costs effectively and increase their purchasing power.

Pavlo Matiash
CEO of Activitis

"We understand how SMBs operate, which is why we offer solutions specifically optimized for them. Our products are always clear for businesses. We do not impose additional services or manage accounts—we simply provide high-quality and fast financing. With its existence and growing popularity, the eDilo platform promotes the adoption of B2B factoring among Ukrainian entrepreneurs."

With the support of international partners, Activitis has introduced a cashback option to encourage women-owned businesses and businesses that create new jobs. The maximum possible cashback is up to 12%. Timely payments earn buyers a 2% cashback, creating more than two jobs adds 5%, and another 5% is granted if the business owner is a woman. The full cashback amount is available to women-owned businesses that participate in installment or deferred payment transactions, have created at least two new jobs, and have met all contractual obligations on time.

Viktor Vilchynskyi
Business Development Director at Activitis

"Factoring as financial leverage is the lifeblood of the economy. In Poland, factoring accounts for 15% of GDP, in Belgium—19%, while in Ukraine, it is only 0.2%. However, we have the potential for growth; all that is needed are convenient tools. With the eDilo platform, Activitis creates seamless financial interactions between businesses to bridge cash flow gaps and ensure uninterrupted operations for both suppliers and customers, thereby promoting B2B factoring in our country."

WEAGRO: Agribusiness Installment Plan Details

An exclusive project by Activitis, developed with the support of the USAID AGRO Program, is WEAGRO, an online installment service for agribusiness. The official launch took place on March 13, 2024. The goal of WEAGRO is to provide farmers with a hassle-free way to purchase goods with deferred payments.

Viktor Vilchynskyi
Business Development Director at Activitis

"We noticed that farms under 500 hectares are often excluded from financial services and lending markets. For banks, working with such clients is costly in both time and money. Additionally, these farmers frequently cannot purchase fertilizers and seeds directly from manufacturers, forcing them to buy at significantly higher prices. As a financial company, we found a way to support this entire segment of farmers by creating WEAGRO, offering an alternative financing tool alongside traditional bank and trade credit options."

WEAGRO’s target audience consists of small and medium-sized agricultural companies. Farmers can pay for their purchases in installments or at the end of the installment period. The decision on granting an agribusiness installment is made within 30 minutes, and payment processing takes no more than two hours.

For WEAGRO, Activitis has set a financing limit of 2 million UAH per transaction. "If, after analyzing a client, we determine that they genuinely need more financing and our internal liquidity allows for it, we will set the necessary installment limit," emphasizes Viktor Vilchynskyi.

It is expected that within the first year of operation, 250 agricultural producers will gain access to financing through the platform.

The benefits of using the service can be divided into three key areas. First – the speed of interaction allows farmers to free up time for managing their businesses. Second – farmers can purchase everything they need immediately, without being constrained by their available funds. Third – WEAGRO ensures ethical cooperation between producers and end consumers.

Infographic Comparing WEAGRO and Traditional Lending:

Pavlo Matiash
CEO of Activitis

"The mission of Activitis is to create an ecosystem that enables agribusinesses to quickly and transparently purchase equipment, seeds, fertilizers, and services without collateral, paperwork, or delays. We already have more than 20 partners on the platform offering agricultural installment services to their clients."

The total number of applications received through the WEAGRO service is 366, of which 60 applications came from women-owned farming enterprises. The approval rate stands at 57%, or 209 applications. In terms of purpose, 72% of these applications were for fertilizers and seed materials, while 28% were for equipment and machinery. The average farmland size of participating farms is 871 hectares.

The leading regions in terms of installment applications are Odesa, Dnipro, Mykolaiv, Kyiv, and Poltava oblasts, accounting for over 50% of all applications.

While women represent about 16% of the agribusiness sector, on the eDilo platform, the percentage of women-owned businesses is 40%. This indicates both the growing presence of women in business and their readiness to adopt modern financial solutions.

Source: https://forbes.ua/preview/22189?hash=693b328fa1a1cfa7eaee31b1f7b277a8