Splitit launches business credit card
Splitit Payments, an instalment payments solution provider, 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.
The B2B credit card 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 can 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 process is designed to be risk-free to the supplier and continues automatically over the remaining months until the supplier is paid in full.