Costco may be best known for bulk deals and warehouse savings, but its influence extends well beyond retail. Over the years, Costco has strategically extended into financial services, offering valuable tools and resources tailored to both individual consumers and businesses.
Through partnerships with trusted providers like Citi, Elavon, Affirm and CIBC, Costco offers a range of business financing solutions – including credit cards, payment processing and flexible purchase financing. Whether you’re managing expenses, upgrading equipment, or improving cash flow, Costco’s business financing programs are designed to help you save time and money while fueling growth.
Buy Now, Pay Later with Affirm
Costco has partnered with Affirm to offer a flexible “Buy Now, Pay Later” (BNPL) option for online purchases. This program allows Costco members to finance purchases ranging from $500 to $17,500, with repayment terms spanning 3 to 36 months. Annual Percentage Rates (APRs) vary between 10% and 36%, depending on the customer’s creditworthiness and the selected term.
Key Features:
- Flexible Financing: Choose from repayment plans of 3, 6, 12, 18, 24, or 36 months.
- Transparent Terms: No hidden fees; customers undergo a real-time eligibility check during checkout to view available payment options.
- Online Exclusive: This financing option is available exclusively for purchases made on Costco’s website and is not applicable to in-store purchases.
- Wide Product Eligibility: Applicable to a broad range of products, including appliances, furniture, electronics, and more.
This BNPL option provides Costco members with an alternative to traditional credit, enabling them to manage larger purchases with predictable monthly payments. It’s particularly beneficial for those planning significant expenditures and seeking budget-friendly payment solutions.
Business Services and Payment Processing
Costco partners with Elavon to offer exclusive payment processing solutions for members, including smart terminals, mobile POS systems, and competitive transaction rates. Executive Members enjoy waived application and statement fees.
Additional business services include:
- Business checks and forms
- Bottled water delivery
- Small business health insurance
These services are designed to help Costco members streamline operations and save on essential business needs.
Financing for Small Business Vendors
Supplying a major retailer like Costco can unlock significant growth for small businesses—but it often comes with steep financial demands. Vendors must be ready to scale quickly, manage large inventory volumes, and meet strict delivery timelines.
One of the biggest challenges is access to capital. Traditional loans may be slow or require collateral that many small businesses don’t have. At the same time, costs for raw materials, packaging, and logistics can pile up fast.
That’s why financial preparedness is essential. Small vendors should explore flexible funding options like lines of credit, invoice factoring, or short-term loans tailored for rapid growth. Having capital in place before a big order can make the difference between seizing the opportunity—or missing it.
Pros and Cons of Costco Business Financing
Pros:
- Competitive cash back rewards on gas, travel, dining, and Costco purchases (via Citi and CIBC business credit cards)
- Flexible financing options like buy now, pay later with Affirm for larger purchases
- Exclusive member rates on services like payment processing, checks, and insurance
- Seamless integration of membership perks and financing tools in one platform
Cons:
- Membership required to access financing benefits
- Purchases often limited to Costco or its approved partners
- Credit approval needed for most financing programs, including credit cards and Affirm
While Costco’s financing programs offer solid value for members, they’re best suited for businesses that already rely on Costco for regular spending or operational needs.
How CapFlow Compares
While Costco business financing offers convenient options like cash-back credit cards and installment plans through third-party partners, it’s primarily suited for purchases made within the Costco ecosystem. In contrast, CapFlow Funding Group™ provides customized, flexible financing solutions designed to support real business growth—beyond just purchases. With CapFlow, businesses can access working capital through invoice factoring, lines of credit, and other funding tools tailored to cash flow needs, not tied to specific vendors or spending categories. If your business needs funding to expand, cover payroll, or bridge gaps between payments, CapFlow offers faster access, fewer restrictions, and real support—making it the better choice for real-world financing.
Key Take-Aways
Costco offers a range of business financing solutions—from cash-back credit cards and payment processing to buy now, pay later options through Affirm. These programs, available exclusively to members, are designed to support business growth with competitive rates and convenient access to capital.
By leveraging Costco’s trusted partnerships with providers like Citi, Elavon, and Affirm, business owners can streamline expenses, improve cash flow, and earn valuable rewards. If your company regularly shops at Costco or needs reliable operational financing, it’s worth evaluating how these tools align with your business goals.
