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Moving the B2B Payments Ball Forward

Payments from businesses to vendors and suppliers remain a huge pain point in the payments ecosystem. I can speak from personal experience as a provider of B2B services. While most clients pay on time, the risks of late and non-payment can create a lot of anxiety. The pressure only intensifies for manufacturers of wholesale products, where the pressures of maintaining inventory and handling supply chain can magnify problems with cashflow.

Splitit has brought fresh and welcome innovation to B2B payments with the recent launch of Splitit Business Payments. I have had the pleasure of supporting Splitit in the planning and marketing of this launch, and helping create thought leadership around business payment pain points.

Splitit launched Splitit Business Payments in order to bring a category-leading alternative consumer financing model to the B2B world. Previously, there were only two main alternatives to traditional bank business loans for small to medium-sized businesses: alternative providers of short-term loans or lines of credit, and modernized versions of invoice factoring (also known as invoice financing). Read more:

They were able to do so by bringing the vital innovations they offer in B2C payments through their installment and related solutions. Unlike other “alternative financing” providers, Splitit allows shoppers to use their existing card balances for installments. No new credit applications, and greatly lowered risk to both parties in a transaction. With Splitit’s B2B offering, wholesale purchasers can unlock their existing credit to place orders and set up deposits and installment payments — the same simplicity that Splitit offers merchants and partners to make consumer purchasing more seamless. Read more:

One implication is that Splitit Business Payments helps avoid one of the messiest and most anxiety-filled elements of B2B purchasing, i.e., collections. A quarter of U.S. SMBs said they have been impacted by bad debt they consider uncollectible. And that’s below the global average of 33 percent! Holding entire order amounts on existing corporate credit cards means that suppliers do not need to engage a collections agency to recover unpaid order revenues. There is no longer any risk of lost revenues due to collections fees. As a result, suppliers can build relationships with new buyers with a higher degree of trust and confidence. It’s a much-needed innovation. Read more:

One of the most enjoyable aspects of my own work is the privilege of partnering with fintech innovators who help make people’s financial lives easier, whether in payments, securitizations, risk and compliance, or alternative investing. With Splitit, I look forward to helping them advance their vision for a better payment experience.

Want to know more about the installment payments landscape? Get Splitit’s latest whitepaper here:

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