eBay buys BillMeLater from Amazon

Just to show that there are opportunities even in times of recessions and economic downturns, eBay buys BillMeLater from Amazon, First Data Corp, and half a dozen other major investors.

The concept of BillMeLater, as the name implies, is that you can purchase and enjoy a product now and then not receive a payment for up to 90 days. As the world observed, we experienced a major credit crisis in New York City and Washington DC in the last week of September 2008.

One of the significant issues of the credit crisis is that businesses operate on credit in order to buys the goods and services they need now in order to conduct business now or in the future. Typically, businesses will perform services and then collect money afterwards. Consequently, they are always trying to play catch up with their cash flow. This is why a strong credit market is vital to conducting business.

BillMeLater is a secondary credit market that allows people and businesses to procure goods and services now and then pay later. BillMeLater offers short-term, 90 day liquidity in an otherwise credit and cash strapped economy.