Ukraine’s first-ever online Buy Now, Pay Later (BNPL) service for businesses is changing the landscape of working capital management. By offering a transparent, fast, and convenient platform for buy-and-sell transactions, eDilo is empowering entrepreneurs to achieve growth.
The full-scale war in Ukraine has created a severe financing gap for businesses, particularly impacting micro, small, and medium-sized enterprises (MSMEs). This lack of access to capital threatens their survival and could lead to a broader economic crisis. Therefore, new fintech projects are stepping in to help businesses secure the funds they need to build long-term strategies for their further growth and development. One such solution is eDilo, a collateral-free BNPL service for businesses from Activitis, that connects suppliers and buyers while implementing innovative risk hedging models and an advanced document flow system.
Limited Choices: Overview of Ukraine’s MSME Lending Market
The war has significantly altered Ukraineʼs financial market. Commercial banks, traditionally the primary lenders to MSMEs, have shifted their focus towards buying government securities, limiting their lending to businesses. The main players in financing businesses are banks that have joined the Affordable Loans 5-7-9% program. However, they mostly lend to medium-sized and large enterprises, while micro and small businesses remain overlooked. Additionally, the government’s ʼVlasna Spravaʼ program, which supports micro and small businesses by providing financial grants to entrepreneurs, has a limited scope.
Small businesses need financing to purchase goods, repair equipment, and respond to currency fluctuations. Non-bank institutions can potentially offer faster and more flexible working capital compared to commercial banks’ financing procedures. However, Ukraine’s non-bank financing market is still at its nascent stage. The demand for effective solutions is growing, but the domestic market is not ready to offer many financial instruments.
One of the promising solutions is factoring. «Factoring is a powerful financial instrument to access working capital quickly and reduce cash gaps,» points out Rostyslav Dyuk, Chairman of the Ukrainian Association of Fintech and Innovation Companies (UAFIC). However, factoring is still underdeveloped in Ukraine. In European countries, it accounts for a significant share of the business financing market. For example, in Poland factoring accounts for up to 15% of GDP, while in Ukraine, it represents only 0.18% of GDP. The Ukrainian market is in its transformational phase. Traditional banks are struggling to meet emerging challenges facing the banking sector, which creates opportunities for the growth of microfinance companies and the development of alternative financial instruments.
eDilo as a New Tool for Business
«The outbreak of a full-scale war became a crucial point for many businesses,» says Viktor Vilchynskyi, Activitisʼ Director for Business Development, «We noticed that Ukrainian companies, despite difficulties, remained loyal to their partners who provided support and flexible cooperation terms and conditions. Business is not only about finance but also about trust between partners. This idea laid the foundation for our new service, B2B BNPL, which offers an alternative to bank loans and traditional trade factoring.»
The eDilo service allows businesses to purchase essential goods and services without intermediaries with the option to pay in installments. This flexibility is especially beneficial for companies looking for investments in equipment or infrastructure while retaining working capital for their strategic investments. For example, cafes can now purchase generators in installments, ensuring uninterrupted operations during blackouts.
eDilo operates online, allowing both parties, the seller and the buyer of goods/services, to register and access their personal accounts with all the necessary information, such as payment schedules, reminders, and contract terms and conditions. All transactions are executed in a digital format. Sellers can enter into factoring agreements and receive quick payments for their goods/services without long delays, and buyers receive goods immediately while paying for them gradually.
The service makes financial relations between companies more transparent and efficient. By eliminating the need for bank applications and collateral, it saves businesses valuable time and resources. This approach preserves liquidity, allowing companies to invest in their development without depleting their cash. Itʼs a win-win strategy: sellers get new orders, and buyers gain access to resources on favorable terms.
«We place an emphasis on the digitalization of processes,ʼ points out Viktor Vilchynskyi, ʼThanks to the use of technologies, in particular digital signatures, we have created a platform that brings together buyers and sellers in a virtual space. A careful selection of partners allows us to ensure the high quality of the eDilo service and long-term cooperation.»
Effective Instrument for Businesses and Partners
In Ukraine’s modern business environment, eDilo service is gaining popularity as an important tool for businesses of all sizes. Currently, about 70% of the B2B installment service use falls on partner enterprises, and the remaining 30% is on active clients (buyers).
«We started with six bicycles and a garage, i.e. with the minimum resources, like most small businesses did,» Oleksii Kushka, owner of Veliki.ua, recalls. The first investment in the future bike rental company was $600, which was spent on purchasing new bikes and accessories (racks, helmets, and a child seat). Over time, the business grew, and new customers appeared, including entrepreneurs from the Bukovel resort who urgently needed electric bicycles. However, it was not easy for them to invest $5,000 in new equipment at a time. «They contacted us with an order, and we advised them to use the eDilo service to pay in installments,» explains Kushka. «In two days, we agreed on all the documents, the clients signed the contract with a digital signature, and in summer, the bikes were already available at the resort.» Now the company also sells generators, inverters, and solar panels. This energy-efficient equipment is very relevant for homeowners associations (HOAs) as the bills for energy rise, but they cannot pay for their purchases quickly – it takes a long time for residents to vote and collect money. But with eDilo, these processes can be expedited, and people can satisfy their needs faster.
«We are striving to further develop our business and see great potential in cooperation with eDilo,» Oleksii Kushka shares his plans.
Cooperation with eDilo has also opened up new opportunities for another Ukrainian business. «Our story is evidence of how professional knowledge can turn into a successful business,» says Oleksandr Pogulyayko, CEO of Kyiv Weight Plant, LLC. «We started with the installation of scales and became a leader in Ukraine’s weighing equipment market. However, the company’s customers, in particular, farmers, cannot always pay for their orders in advance, as they only generate their earnings after the harvesting. That’s where eDilo comes into play, where farmers can pay in installments for property that they buy.» Political instability makes customers frugal with finances, reducing the demand for lending,» adds Pogulyayko. «But we have numerous orders that have been postponed to the spring of 2025. I am confident that the market will recover, and eDilo will help clients resume their postponed projects.»
Support from USAID and Strategy Going Forward
To further develop the eDilo service, the Activitis finance company entered into a co-financing program with the USAID Investment for Business Resilience (IBR) activity. This partnership allowed eDilo to offer more favorable financing terms and conditions for small and medium-sized businesses. Seller companies benefit from factoring services at a favorable price, as the IBR and Activitis co-financing program subsidizes the service fee, while buyer companies can receive up to 12% cashback, including 2% for timely payments, 5% for hiring new employees, and an additional 5% for women-owned businesses.
Rafael Jabba
Chief of Party, USAID Investment for Business Resilience Activity
«USAID has traditionally supported entrepreneurs that create new jobs, and especially those who have women actively engaged in business. The IBR Activity also aims to expand access to capital for small and medium-sized businesses (MSMEs), develop new financing products, and promote sales in this segment. eDilo program allows sellers to receive financing at a reduced price almost immediately, and buyers to purchase goods paying in installments. Furthermore, if buyers pay according to the schedule, they can receive additional cashbacks of up to 12% of the contract value. Through the eDilo B2B factoring program, we plan to unlock around $9 million to support 450 MSMEs, including at least 25% of women-owned businesses. This is not just financial support, but also an important step towards stabilization and growth of Ukraine’s economy.»
The service also ensures top-tier data protection, making it easily scalable internationally. Aligned with global embedded finance trends, it enhances the customer experience by integrating diverse financial features—positioning it as a strong, future-ready solution for competitive growth.
«The key advantage of eDilo is its unique value,» emphasizes Rostyslav Dyuk. «It’s not just about being first; it’s about delivering efficient performance—completed transactions proved the efficiency of eDilo. This opens new horizons for Ukrainian businesses, empowering entrepreneurs with essential tools to grow and adapt within today’s economic landscape. eDilo is more than a service; itʼs a strategic enabler, driving sustainable growth and supporting businesses as they navigate new market realities.»
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