“0 %” BNPL for Inventory: The Hidden Price Tag

Suppliers love to advertise “0 %” Buy-Now-Pay-Later plans for stock purchases. Look closer and you may find an 8 % mark-up baked into the invoice.

Reality Check Example

Item	BNPL Price	Cash Price
Inventory PO	AED 100 000	AED 92 000

On a 90-day term, that hidden mark-up equates to roughly 18 % APR.

Smart Buyer Playbook

1. Ask suppliers to quote both cash and BNPL prices.
2. Compare embedded mark-up with the cost of a short-tenor working-capital loan.
3. Choose the cheaper option and keep the spread as extra margin.

Keywords: BNPL fees UAE, supplier financing, hidden cost inventory, working-capital comparison
Hashtags: #KlubAI #BNPLTruth #InventoryFinance #CostOfCapital #SMESavings

Disclaimer: Example numbers are illustrative; negotiate terms directly with your suppliers.