Are you protected when you use a vendor pay later option?

Are all Pay Later options the same?

The Buy Now Pay Later (or BNPL) concept has revolutionised several industries by providing customers with an option to buy a product or service without having to worry about the costs upfront.

The real estate industry is no exception when it comes to deferring vendor paid advertising.

With a Pay Later option, a vendor doesn’t have to worry about the marketing budget for a campaign before a sale is secured. Fees for this offer can be settled at an agreed time, making the financial arrangement convenient for both vendors and agents. As a result, agents get the funding that they need even if their vendors are not ready to settle fees upfront.

Given the popularity of these Pay Later services, there are a lot of alternatives that have entered the market. 

But the question is: how do you know that you are choosing the right BNPL option?

What should you look for when selecting a Pay Later partner?

You want the brand that offers the best for you, your agency and your vendor.

There are a few considerations with this. Firstly, the diversity of payment options to suit the needs of every vendor is important and secondly, it's crucial to understand how protected you and your vendor are in relation to financial regulations.

First, the diversity decision

There are many Pay Later options on the market, but most offer just this: one Pay Later option to fit every vendor.

Campaign Flow is different. It provides an unrivalled Buy Now Pay Later solution. 

We recognise that every vendor has their own unique circumstances and preferences when it comes to their finances. In order to help agents cater to everyone, we offer three convenient, versatile payment options that suit all needs. 

With Campaign Flow, vendors can: 

(1) Pay Now and conveniently settle the marketing cost upfront.

(2) Pay Later to align marketing budget repayments with the settlement date, or 

(3) Pay On Success: pay the marketing costs ONLY when the property sells, and in the unusual circumstances that a property does not sell a vendor DOES NOT pay their marketing.

Regardless of the choice made by your vendor, you get the funds within 24 hours so you can kick off the campaign and focus on what you do best.

So, Campaign Flow gives you and your customers the ultimate flexibility and versatility. But that’s not everything we bring to the table. We care about the vendors we work with, so we also offer security and assurance.

Here’s what we mean. 

Secondly, how protected are you?

The BNPL industry in Australia has been continuously growing over the past few years. 

Experts attribute this rise not only to its appeal to customers, but also to a lack of oversight from authorities. As it stands right now, BNPL providers are not subject to regulation as they are not covered by the provisions of the Australian National Consumer Credit Protection Act of 2009. The law does not apply to short-term interest-free credit - which is the very nature of BNPL solutions.

Australian regulators, however, have noticed how this grey-area may be harmful to customers. As a result, the BNPL industry has adopted a code of conduct for self-regulation. To ensure that customers are protected from unexpected and unnecessary charges, operators are required to do regular financial checks on individuals to ensure they do not overextend themselves.

But what about the real estate sector?  

Australian law states that credit cannot exceed past 62 days unless the lender has an Australian Credit License (ACL). However, as agents ourselves, we’ve seen first-hand that not all properties are exchanged and settled within this timespan placing vendors at risk of a loan in default if their property has not settled within the 62-day window.

This is why Campaign Flow operates as a fully credited and regulated, non-bank lender under an Australian Credit Licence. This means we can pay your agency upfront and defer your vendor's loan until settlement when they have the funds to repay. 

With an ACL, you know that we not only take care of the property marketing costs, but we also make sure that we are compliant with all Australian regulations, so your agency and your vendors are protected

Not all Pay Later options do this – and it’s important you know the difference. 

ASIC and Australian financial regulators are starting to focus on the Pay Later market, and they are beginning to investigate non-compliant providers to protect customers. 

When you choose Campaign Flow, all our payment options are regulated, so you can be sure that you, your agency and your vendors are already fully protected with compliant loans.

So – which Pay Later option are you going to choose?

Sign up today so you can buy now, pay later and stay protected with Campaign Flow. 

For more information, visit our website here.

Or get in contact with us today to learn more.
Phone: 1300 665 136
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