Splitit Payments, a global instalment payments solution company, has launched Business Payments, its first business-to-business (B2B) payment platform.
The solution is designed to enable manufacturers and suppliers to offer buyers of inventory or services an interest-free, instalment credit solution using their existing business credit cards. It enables buyers to purchase goods and services with existing business credit cards for zero-interest transactions and delivers improved cash flow and guaranteed timely payments to suppliers.
“The US$120 trillion B2B payments market has suffered from a lack of innovation for decades,” said Gil Don, CEO and co-founder of Splitit. “With Splitit’s patent portfolio for credit card-based transaction financing, we can finally get beyond antiquated invoices, purchase orders, credit verification, factoring, payment/collection systems and overstaffed accounts receivable departments.
How it works
Splitit Business Payments is an extension of the company’s consumer instalment payments platform that gives shoppers the ability to pay for purchases in interest-free monthly instalments using their existing Visa or Mastercard accounts. Both B2C and B2B payment schemes are global in nature and can readily support cross-border transactions.
Once a buyer and a supplier agree on terms for an order, the buyer can choose Splitit Business Payments instead of a purchase order, making a deposit (often up to a third of the value of a contract) or working through a factor. The seller then puts a hold for the full amount of the order on the buyer’s business credit card in lieu of a deposit. Both sides agree to the terms of a monthly instalment plan.
Based on mutual agreement, the manufacturer can process an initial payment or wait until the order is shipped. Once triggered, the instalment plan is activated, and a first payment is automatically charged. At the same time, Splitit reduces the amount of hold on the credit card account by that amount. The entire process is designed to be risk-free to the supplier and continues automatically over the remaining months until the supplier is paid in full.
Buyers of goods and services are not required to submit an application, register or undergo a credit check, which translates to speedier and more efficient transactions. In addition, Splitit does not require them to sign a long-term contract.
Splitit Business Payments imposes no interest, charges no factoring fees and is more accessible than a conventional loan for B2B buyers. It also speeds and eases the reorder process.
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