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What is Qonto’s Pay later feature, and who can use it?

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Qonto’s Pay later feature - also known as purchase financing - is a financing solution integrated into your app. It unlocks credit to finance your supplier invoices, allowing you to pay the amount back later in 3, 6 or 9 installments.
 

If you're eligible, you can activate your credit through your Qonto app from 2 sections:

  • Financing > Pay later
  • Transfers > SEPA transfer by invoice upload > Pay later

The credit is the total amount at your disposal to finance your purchases with the Pay later feature.

 
To use your available credit, simply upload a supplier invoice (through SEPA transfer) to your Qonto app. We will then credit the exact amount to your account and set up an automatic transfer from your account to pay your supplier immediately. This ensures that your account balance remains the same after the operation.
 
Once you have funded an invoice with Pay later, the repayment is automatically scheduled in 3, 6, or 9 installments (for example, for 3 installments: at +30 days, +60 days, and +90 days).
 

The interest rate applied to the financed amount can vary depending on the eligibility criteria of your account. Different factors such us your previous financings, your incomes and overall company financial stand, may influence the rate you receive. To find out the specific interest rate applicable to your financed amount, please check the Pay later cockpit within your Qonto app.

Note: To increase your chances of becoming eligible or increasing credit limit you can link your external accounts where your company has income streams.

 
At each installment, the amount will be automatically debited from your main Qonto account.
 
Therefore, it's important to ensure you always have enough funds to meet your installments. For more details, please refer to this article.
 
☝️ Good to know: The APR (Annual Percentage Rate) is an actuarial rate. This means that the monthly rate is calculated as the equivalent rate over a period of 90 days (3 months), 180 days (6 months) or 270 days (9 months).
 

How can the Pay later feature improve my business’ cash management?

The Pay later feature offers numerous practical benefits, including optimizing cash management, providing solutions for financing supplies, facilitating tool investment, and managing unexpected expenses.
Here is a list of examples where you could use it:
  • Financing supplies or inventory. You can make timely rental payments to secure a stable business infrastructure for construction activities for instance, or purchasing furniture, paying for auction fees or restocking.
  • Investing in new tools. You can buy goods and services aimed to support and expand your business.
  • Emergency purchases. You can use it to replace broken furniture, tools and services, or for repairs.
 
 

Who can use the Pay later feature?

It is available subject to eligibility and only accessible to Qonto account Admins and Owners who hold Corporate Officer roles.
 
We take into account criteria to assess your eligibility and calculate the amount of credit you can use.
If you meet the conditions, you will then need to sign a contract.


What are the main eligibility criteria in Italy? 🇮🇹

Risk score

Qonto utilizes external data sources to establish a risk score. These data may include elements such as:

  • the latest published financial statements
  • your sector of activity
  • the company history
  • your aggregated accounts

Additional (global) criteria

  • Your company must be registered for at least 9 months.
  • You must have been a Qonto customer for at least 6 months.
  • Your company must be domiciled in Italy.
  • Nonprofit organizations are not eligible.
  • Your company must be fully operational and not in the process of closing.
  • 2-step authentication must be activated on your Qonto account.
  • If you are or have been the subject of seizure following a debt contracted with a company, an individual or the financial authorities in your country, your access to the Pay later feature will be revoked.
  • If we are unable to debit an installment on the scheduled date, you have a grace period of five days to fund your account to regularize the situation. Beyond this period, access to the Pay later feature will be permanently revoked (more details here)

☝️ Good to know: we assess your repayment capacity on a daily basis, that’s why your eligibility and the amount of credit you can use may evolve. A potentially non-eligible organization may become eligible, and vice versa. Qonto reserves the right to revoke your access to purchase financing at any time, in accordance with your contract terms.

 

What if I’m not eligible?

If your company is older then 6 months, you have as well the option to potentially increase your credit and eligibility by connecting your external accounts to Qonto. Read more in this article.

If you do not qualify for Qonto’s Pay later feature, you can explore other financing solutions from our partners, in the Financing > All partners section of your account. And keep in mind that, as your business evolves, you may become eligible to pay later with Qonto in the future.