Nav's New Program Lets Small Businesses Bank on Each Other

SAN MATEO, CA – December 16, 2025 – Financial health platform Nav has launched a pilot for its new Payment Terms Program, an ambitious initiative designed to empower small businesses to extend trade credit directly to their peers. The move marks a significant expansion for the company, aiming to bring structure and simplicity to the often-fragmented world of business-to-business (B2B) payments.

The program leverages Nav's decade of experience in business credit data and infrastructure to create what the company calls a "two-sided credit ecosystem." By providing a platform for vendors to offer net terms to their customers, Nav hopes to solve a persistent challenge for small business owners: managing cash flow and risk while fostering growth within their own communities. The pilot is currently underway with a select group of businesses ahead of a planned public launch in early 2026.

"Small businesses have told us for years that they want to support other small businesses like them - but extending credit has always been messy, fragmented, and difficult to manage," said Levi King, CEO and co-founder of Nav, in the announcement. "Nav has spent more than a dozen years building the infrastructure and partnering with the entities that make this possible, and we're excited to bring structure to the most fragmented part of the small business economy."

Addressing a Critical B2B Pain Point

For many small and medium-sized businesses (SMBs), offering trade credit - such as net-30 or net-60 payment terms - is a double-edged sword. It can be a powerful tool to increase sales, build customer loyalty, and remain competitive. However, it also ties up crucial working capital and exposes the seller to the risk of late payments or defaults, creating significant cash flow strain. Industry data consistently shows that managing accounts receivable and the manual processes involved in vetting credit applications are major operational burdens for SMBs.

Nav's Payment Terms Program aims to alleviate these pressures by automating much of the process. According to the company, vendors using the platform can offer custom payment terms without the need for manual application processing. Buyers, in turn, complete a simple online application hosted by Nav. A dashboard then allows the vendor to approve or decline applications in minutes, with Nav managing all automated communications.

The early results from the pilot phase suggest a strong demand for such a solution. Kayla Palmer, Executive Director of pilot participant Nine to Five Essentials Plus, has seen immediate benefits. "Within less than two weeks, the business received more than 80 applications from customers seeking payment net-30 terms," the company reported.

Palmer highlighted the efficiency gains, stating, "Before Nav, it would take multiple steps to fully assess an application for net-30 and still leave gaps in understanding if that business could pay. With Nav my time spent evaluating applications has decreased, giving me more time to focus on my business. It's a win on all fronts!"

Entering a Crowded FinTech Arena

While Nav's initiative is a significant step for its platform, it enters a B2B payment landscape that is already active with FinTech innovation. The problem of delayed B2B payments and cash flow crunches has attracted numerous players, creating a competitive market for credit and payment solutions.

The field includes established invoice factoring companies, which purchase unpaid invoices at a discount to provide businesses with immediate cash. More direct competitors have emerged in the form of B2B "Buy Now, Pay Later" (BNPL) and trade credit platforms. Companies like Resolve, Credit Key, and Balance offer services that automate the extension of net terms, often assuming the credit risk and providing upfront payment to the seller. These platforms are designed to embed seamlessly into a merchant's checkout process, boosting conversion rates and average order values by offering flexible payment options.

Nav's strategic advantage may lie in its established ecosystem and unique focus. For over a decade, the company has cultivated a user base of small businesses actively engaged in understanding and improving their credit profiles. This new program is a natural extension of that mission, transforming passive credit monitoring into active credit facilitation.

A key differentiator is the program's handling of declined applications. Rather than a simple rejection, Nav provides guidance to applicants on the specific factors that led to the denial and offers a roadmap to strengthen their credit profile. This approach not only serves the individual business but also aims to expand the pool of credit-ready businesses over time, reinforcing the community-centric ethos. "Vendor credit can be just as powerful as any loan," King noted, emphasizing the program’s potential to unlock growth.

The Risks and Rewards of a Peer-to-Peer Model

The program's vision - enabling small businesses to effectively act as lenders for one another - carries both immense promise and inherent challenges. The primary reward is empowerment. By simplifying trade credit, Nav could unlock a powerful, self-sustaining growth engine for the small business economy, reducing reliance on traditional loans and fostering stronger commercial relationships.

However, facilitating credit, even between businesses, requires navigating a complex web of risk management, data security, and regulatory considerations. The platform's success hinges on the strength of its underwriting model. Nav states it uses "proprietary data and partner sets to verify both buyers and vendors," assuring participants they are dealing with creditworthy entities. The robustness of this verification process will be critical in minimizing defaults and maintaining trust within the ecosystem.

Data security is another paramount concern. The program will handle highly sensitive financial information from both buyers and sellers. Protecting this data from breaches is non-negotiable. As a financial technology firm, Nav is expected to adhere to stringent security protocols, including end-to-end encryption, multi-factor authentication, and compliance with data privacy regulations like GDPR and the California Consumer Privacy Act (CCPA).

While B2B lending is generally subject to different regulations than consumer lending, the legal landscape is evolving. A growing focus on transparency in small business financing means platforms like Nav must ensure their processes are fair and non-discriminatory. The program's commitment to reporting payment histories to business credit bureaus adds another layer of responsibility, as this data directly impacts a business's future financing opportunities.

As the pilot progresses toward its 2026 launch, Nav's ability to balance this powerful peer-to-peer model with rigorous risk management and security will determine its long-term impact. "Nav's Payment Terms Program is a revolutionary concept that puts more power in the hands where it belongs - small business owners," King concluded. The coming months will reveal if this revolution can deliver on its promise to help small businesses grow together.