Splitit is launching the first of its kind business-to-business (B2B) payment platform. Splitit Business Payments is going to allow manufacturers and suppliers to offer their buyers an interest-free, installment credit solution.
B2B Installment Payments
According to the company, this new solution is going to remove the barriers between SMB buyers and sellers. It will do so by addressing the inefficiencies and friction these two groups face when they conduct business.
Business credit is essential for small business owners, but getting credit is not always possible. The installment payment solution from Splitit looks to make B2B payments available to businesses without traditional methods.
In the press release, Gil Don, CEO and co-founder of Splitit, explains how Splitit is moving beyond the traditional ways of making credit available.
The B2B payments market is a multi-trillion-dollar segment, but according to Don, it is suffering from lack of innovation. He goes on to say, “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.”
Splitit Business Payments is the evolution of the installment payment solution the company announced for consumers in 2018. With that platform, consumers can split the purchase cost of an item into three interest-free payments. This gave retailers more purchasing power and revenue streams.
The goal of the new service is to do the same for manufacturers and suppliers. At the same time, it is going to give buyers the credit to make the purchases.
How Does it Work?
The process is similar to the consumer side service. If you are a buyer, you can choose to pay for your purchase with Splitit installments.
Once you agree with the seller on the installment period, the full amount is authorized on your business credit card. The transaction is initiated and approved, and the seller then ships the product to you.
Whether you are a seller or buyer, your business can streamline its cashflow with automated receipt of deposits and payments on schedule.
As a seller, you will always get paid on time. This is because Splitit puts a hold on the entire amount of the purchase on the credit card. The card issuer assumes the risk and the buyer will ultimately be responsible.
By removing the burdensome credit expenses and debt collection from the equation, Splitit provides a win-win solution for the buyer and seller. In the long run, both sides can grow their business and relationship because they are benefiting from the transaction.
You can request the demo for Splitit Business Payments here.