31 March, 2023

6 minutes of reading

Written by: Alice Casagrande

Payment Installment plan for Businesses: Meaning and Examples


The term "payment installment plan" isn't a novel concept within businesses, which have always utilized instruments like RIBA and 30-60-90 day transfers to receive payments from clients. However, the rising expectations in flexibility and security make it essential for new, more agile deferment methods, such as the Buy Now Pay Later.

Payment Installments: What Does It Mean?

The concept “payment installment plan” has long been employed by businesses of all kinds to cater to their clients' payment needs. This mechanism allows an amount to be divided into manageable installments. In this way, someone purchasing a product or service can pay in small tranches spread out over time, without necessarily having the full amount on hand immediately.

The key advantage lies in the ability to distribute payments flexibly and conveniently, thus minimizing cash flow imbalances.
On the other hand, sellers offering this payment method meet their clients' needs, increasing the chances of concluding a sale and enhancing customer loyalty.

What Are the Traditional Forms of Installments?

In today's globalized and digital world, companies seem to cling to traditional methods, at least when it comes to payments, primarily using bank transfers. That said, installment remains a common practice in every business. Let's examine the most utilized methods by businesses to offer deferred payments to their clients.


RIBA, an acronym for bank receipt, is a financial instrument whereby the creditor, in our case a selling company, submits a tax receipt to their bank, declaring entitlement to a specific sum from their client. This document obligates the debtor to settle the amount by a specified date and authorizes the bank to collect it.

Invoice Advance

This is a financial tool typically provided by traditional financial institutions. A company with credit towards its clients asks the bank to "advance" a portion of these funds until the invoice due date. Upon the client's settlement, the bank retains the advanced amount, granting the company the retained percentage (typically between 10% and 20%). To this, one must subtract the interests owed to the financial institution. If the client defaults, the bank charges the company the previously advanced amount.


Factoring is an instrument similar to invoice advance but more structured, based on an ongoing relationship. In factoring, there's a specialized operator, termed Factor, who acquires some commercial credits in advance, following a careful assessment of the reliability of debtor clients. The credit assignment can occur in two distinct manners:

  • Pro solvendo, when the company assumes the risk of potential client insolvency.
  • Pro soluto, when the Factor takes on the risk of insolvency of the transferred debts.

30-60-90 Day Transfers

This method allows for a debtor's payment to occur 30, 60, or 90 days after the invoice issuance date. It's a deferred payment in a single installment and can be executed directly via transfer.

Installments with Buy Now Pay Later

Traditional installment methods have multiple limitations, primarily their lack of immediacy and automation. Today, new solutions aim to streamline and expedite those procedures that divert time from other strategic business activities.

Increasingly popular is the Buy Now Pay Later (BNPL), a short-term financing type allowing consumers to purchase a good, online or offline, paying an initial installment at order placement and subsequent ones typically 30 days apart. Predominantly found in the consumer market, it's now also available for business clients.

Addressing the needs of this target audience is precisely the goal of Opyn Pay Later, the innovative "buy now pay later" service specifically geared towards the Business-to-business world

Opyn provides a flexible and modular payment installment solution suitable for any company type. This means that using the platform, B2B suppliers can choose, for every individual transaction, both online and in-store, various payment options to offer to their clients in a tailored manner.

The benefits of Opyn Pay Later

The advantages of Opyn Pay Later compared to traditional methods are countless, here are a few:

  • A 100% digital experience: through Opyn Pay Later, you can generate a payment link in a snap and get paid in just a few clicks. Customers just need to insert a debit or credit card and subsequent installment charges are automated.
  • Enhanced security: Opyn Pay Later offers a safe service where you can receive and monitor client payments without issues, all from a singular platform.
  • Fewer defaults: with our platform, you receive on-time collections and enhance treasury flows by reducing the risk of defaults, thanks to Opyn's credit expertise. We'll handle the soft collection!
  • No fixed costs: no subscription or activation fees. You pay commissions only if your customers conduct transactions.
  • Increased flexibility: for every sale, you can select the installment method you desire and propose it to your clients in a customized way.
  • An all-in-one solution: With Opyn Pay Later, you'll have access from a single platform to various services related to managing your B2B sales. This will allow you to enhance cash flows, reduce administrative costs and credit risks.

Ready to ditch old installment methods and start selling more through Buy Now Pay Later? Request Opyn Pay Later now.