Alibaba.com Taps Balance to Launch AI BNPL for SME Cash Flow

Small and medium-sized enterprises (SMEs) are getting a new financial lifeline as global supply chains continue to face economic uncertainty and rising buyer expectations. Alibaba.com has partnered with Balance, a financial infrastructure platform, to introduce "Pay Later for Business" – a tool that gives US-based businesses more flexibility in how and when they pay for goods purchased on the platform.

AI-Powered Credit at Checkout

Balance, which uses artificial intelligence to handle B2B transactions, now powers the embedded Buy Now Pay Later (BNPL) feature on Alibaba.com. This allows eligible US buyers to access instant credit directly during checkout, targeting SMEs that traditional financing providers often overlook. The solution helps these businesses fund purchases without needing upfront cash or credit cards.

The AI technology evaluates credit risk instantly, enabling quick approvals while keeping the operational burden and credit risk off sellers' shoulders. This flexibility proves particularly valuable in cross-border supply chains, where longer delivery times and currency conversion challenges often require upfront capital that smaller businesses may not have readily available.

Addressing Economic Pressures

Bar Geron, CEO and Co-Founder of Balance, emphasises how current economic conditions make financing access crucial: "In tight economic conditions, and especially with the added strain of tariffs, access to financing can make the difference between surviving and thriving. We're proud to partner with Alibaba.com and power a solution that helps its US users grow their businesses with confidence."

Balance's broader platform helps businesses manage payments, offer net terms (allowing customers to pay invoices over a set period after delivery), and automate accounts receivable processes. These features reduce payment costs, improve cash flow, and simplify collections – especially important for sectors that rely on regular orders and large-volume purchasing.

Yiran Li, Head of Customer Retention Strategy at Alibaba.com US, highlights the importance of payment flexibility: "Flexible B2B payments are essential for business customers who want to grow. By embedding Balance directly into our checkout, we're making it easy for customers to buy on their terms, without being limited by cash flow constraints."

Expanding B2B Buy Now Pay Later

This partnership continues Balance's expansion into B2B commerce, building on its earlier collaboration with Instacart Business, where it powers embedded invoicing and net terms for more predictable payment schedules. With Alibaba.com now on board, Balance operates across a wider network of platforms offering seamless invoice-to-cash processes.

Unlike traditional lending approaches, Balance's AI system analyses multiple data points to make instant decisions, improving approval rates for SMEs that older financial models often exclude. Sellers on Alibaba.com also benefit by outsourcing risk assessment and collection to Balance, allowing them to offer credit to more buyers without taking on the uncertainty themselves.

For supply chain managers and SME owners, this means fewer obstacles to importing goods and better opportunities to negotiate favourable payment terms with manufacturers. Buyers can also respond more quickly to demand changes without halting production or missing procurement opportunities.

CoCreate Competition Spotlights SMEs

The Pay Later for Business launch coincides with Alibaba.com's rollout of CoCreate Pitch – a global competition designed to help SMEs bring new products to market. Timed with World Micro, Small and Medium Enterprises Day on June 27th, the contest offers nearly £750,000 (US$1m) in prizes plus access to Alibaba.com's sourcing tools.

UK and European SMEs can now submit product ideas, with two Grand Champions – one each from Las Vegas and London – set to win approximately £150,000 (US$205,806). Twenty additional global winners can receive up to £30,000 (US$41,161). All participants receive complimentary access to Alibaba.com's supplier network, making product development and sourcing more accessible.

The competition culminates at live CoCreate events, where finalists pitch to industry leaders and investors. These events in Las Vegas and London bring thousands of SMEs together to exchange ideas, build supply partnerships and identify growth opportunities.

Kuo Zhang, President of Alibaba.com, explains what makes this year's CoCreate Pitch special: "The pitching competition has always been a highlight of CoCreate, and it's great to see the entrepreneurial energy and passion SMEs bring to developing their innovative product ideas.

"This year, we're thrilled to open this opportunity to entrepreneurs in Europe and the US, and look forward to seeing the product dreams of the brightest SMEs and entrepreneurs coming to life on stage."