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According to Klarna, a Swedish fintech company, when companies add a BNPL option to their online stores, customers are 35% more likely to make a purchase and, on average, spend 45% more. BNPL simply means, “Buy Now, Pay Later.” As of this year, Novae LLC has become the first Black-owned fintech company to offer this service. They are available to both online and offline merchants under the brand Novae Financing. CEO Reco McCambry believes that these services are the first of their kind. And are designed to fight inequality faced by minority entrepreneurs by drastically increasing sales for these merchants.
BNPL allows entrepreneurs and customers to make purchases and pay for them later without interest or pre-qualification through credit checks. “This is reparations preparation,” says CMO Haziq Ali. “If we have nothing but emotion and passion and no economic plan – we end up like Haiti. We all know the middle class is in danger, but awareness isn’t enough. So Novae’s plan is to prepare our people for home and business ownership excellence.”
“If millions of people can finance a college education to get a job, then why can’t the average entrepreneur finance a course to help them excel in their business?” COO Shaneé McCambry told Black Business. “This will make life-changing information more accessible, the goal is to help customers invest money now, so they can make money later and pay off the debt early.”
Novae’s BNPL is part of McCambry’s pledge to make financial success more affordable for Black and minority entrepreneurs. Generally speaking, they have less money to invest. The Black community is lacking in their careers, businesses, homes, family, and education due to decades of discrimination and oppression. Additionally, Novae offers access to educational courses and information to help entrepreneurs succeed. Novae has a number of trainers, speakers, consultants, and coaches to help entrepreneurs get their businesses off the ground and grow.
One thing that really stands out to me about Novae's mission came when I visited the About Me page on their website. Not only is it full of faces that represent our culture, but I see the foundations of generational wealth as well. The Business Funding Manager is simply “Reco Jr”. He began with the company doing simple filing and mailing, he's now worked his way up. It's a beautiful thing to see the CEO's passion being played out in real life. He's not just preaching of wanting to provide opportunities to his own, he's showing it.
And aside from being the first Black company to offer BNPL, Novae is having a great year all around. In August of this year, they earned another major distinction. They made Inc’s list of the 5,000 fastest growing companies in America. The Inc 5000 list measures business growth over a three-year window and compiles an annual list of the fastest-growing employers in America. Founded in 2014, Novae's revenue has more than doubled each year since the introduction of its Business Credit & Funding and White Label Franchise Programs in 2018. Also a training company, Novae provides seminars, workshops, webinars, and free conference calls to train and inspire entrepreneurs across America.
And now with Novae's BNPL going even better than expected, it could possibility result in an 200% increase over the initial projections for 2021. Offering business owners a totally automated financing solution for high ticket products and services. And the process approves credit worthy customers online in just minutes. In addition, qualifying credit scores can be as low as 515. Financing is available up to $100,000 for consumers depending on the industry. Novae Financing approves consumer applications with 6, 12, and even 18 month same-as-cash (no interest) options. Due to the rapid growth in these programs, Novae ranks 2,307 out of more than 7 million employer firms in the US.
Customers can expect much easier access to BNPL financing than in the past. And interested retailers can feel good about offering a social justice oriented BNPL option. And to top it off there’s no need to worry about nonpayment with BNPL technologies. In a standard BNPL system, retailers pay a fee for access to the BNPL system. This in turn generates profit for the BNPL’s lending partners. The lending partners then guarantee that the bills get paid. And retailers generally recoup more than their access fees in the form of improved conversion rates and larger average purchase sizes. Companies are always looking for ways to improve conversion rates.
SOURCE Novae LLC
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