As part of its commitment to supporting small- to medium-sized businesses, FashionGo has introduced Dynamic Net Terms, a payment solution that offers retailers flexible terms ranging from 30 to 60 days [f5287eba]. This innovative program aims to address the challenges faced by retailers who struggle with access to funds, allowing them to make larger orders and grow their businesses. The approval process for Dynamic Net Terms is based on individual business profiles and credit levels, providing greater flexibility and accessibility compared to traditional net solutions. The program offers three levels of terms: 60 days, 45 days, and 30 days. If a retailer doesn't qualify for 60 days, they may qualify for 45 or 30. FashionGo bears the cost of the program, recognizing the financial constraints faced by small- and medium-sized businesses. Retailers can use Dynamic Net Terms without any additional fees, while FashionGo generates revenue by taking a commission from the vendors [f5287eba].
The introduction of Dynamic Net Terms is expected to significantly increase retailers' purchasing power on the FashionGo platform. Retailers who are approved for the program can make larger orders across eleven different product categories, allowing them to expand their inventory and meet customer demand. The approval rates for Dynamic Net Terms are projected to be five to six times higher than the industry norm, indicating the program's effectiveness in providing accessible financing options for retailers [f5287eba].
In addition to offering flexible payment terms, FashionGo's algorithm will automatically suggest increases in term limits based on retailers' platform history and on-time payments. This feature enables retailers to gradually increase their purchasing power over time, providing them with even greater opportunities for growth and success [f5287eba].
For retailers who are not currently using FashionGo, the platform also allows them to place an order and defer payment for 30 to 60 days, with the remaining balance being paid on their credit card. As retailers make on-time payments, their term limits will increase, enabling them to place larger orders and benefit from the advantages of Dynamic Net Terms [f5287eba].