Splitit launches first B2B credit card installment payment solution;

Splitit Business Payments enables manufacturers and suppliers to offer buyers of inventory or services an interest-free installment credit solution using their existing business credit cards. It resolves long-standing inefficiencies and frictions in the way small to midsize buyers and sellers conduct business. It allows buyers to purchase goods and services with existing business credit cards for interest-free transactions and provides improved cash flow and timely guaranteed payments to suppliers.

“The $120 trillion The 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 “With Splitit’s patent portfolio for financing credit card transactions, we can finally go beyond outdated invoices, purchase orders, credit checks, factoring, payment systems/ collection and overstaffed accounts receivable services.

“With Splitit Business Payments, we’ve created a simple yet highly effective solution that provides suppliers and buyers with a flexible, frictionless payment option that can truly improve their business relationships,” Don said.

How it works

Splitit Business Payments is an extension of the company’s successful installment payment platform that gives shoppers the option to pay for their purchases in interest-free monthly installments using their existing Visa or Mastercard accounts. B2C and B2B payment systems are global in nature and can easily support cross-border transactions.

Once a buyer and a supplier have agreed on the terms of an order, the buyer can choose Splitit Business Payments instead of a purchase order, by paying a deposit (often up to third of the value of a contract) or through a factor. The seller then withholds the total amount of the order on the buyer’s business credit card instead of a deposit. Both parties agree to the terms of a monthly installment plan.

Based on mutual agreement, the manufacturer can process an upfront payment or wait for the order to ship. Once triggered, the installment plan is activated and a first payment is automatically debited. At the same time, Splitit reduces the hold amount on the credit card account by this amount. The whole process is risk-free for the provider and continues automatically over the remaining months until the provider is fully paid.

Buyers of goods and services are not required to submit an application, register or undergo a credit check, resulting in faster and more efficient transactions. Moreover, Splitit does not require them to sign a long-term contract.

Splitit Business Payments charges no interest, charges no factoring fees, and is more accessible than a traditional loan for B2B buyers. It also speeds up and facilitates the replenishment process.

Many advantages for buyers and sellers

Splitit’s B2B payment solution minimizes vendor cash flow issues that often arise from expenses incurred during the traditional 60-day billing period, including manufacturing, material, and labor costs.

New York City-based Miz Mooz, which served as a beta customer for Splitit, is a footwear manufacturer that creates stylish, quality women’s shoes at accessible prices using ethically sourced leather and working in European family factories. According to Miz Mooz President Ron Kenigsberghis brand now offers Splitit Business Payments to boutiques and mom-and-pop shops to meet their cash flow needs, many of which are often in high demand.

“Previously, when a customer ordered $10,000 shoes, we used credit cards to pre-pay for goods that can take 30-90 days to sell. But, when we are ready to ship, we sometimes get calls from our customers asking us to hold or split the shipment into parts so they can cover the cost of the goods. The problem is that it’s more work and expense for us to split the shipment, hold onto the goods, and then have repeated conversations about when to charge for them and ship the next batch.

“Now we can pre-authorize their credit, ship the entire order, and provide secure terms that take the risk out of us and help our merchants have more time to sell the shoes – one better situation at a time. for our business and our buyers.”

Ocean Rodeo, headquartered on Vancouver Island, British Columbia, Canadais an adventure sports and kiteboarding equipment supplier that successfully uses Splitit Business Payments to smooth cash flow by securing payment before goods are dispatched to retailers.

“Working with Splitit has been a great experience,” said John Zimmerman, President of Ocean Rodeo Sports. “The B2B offering has removed any inherent antagonism in our relationships with our customers regarding debt collection and on-time payments, making the day-to-day course of business with our customers smoother and more enjoyable, and allowing us to focus on growing sales and exploring new opportunities.”

PipeCandy, an e-commerce business intelligence company with US headquarters in Walnut, California (East Los Angeles County) and in Chennai, Indiabegan offering the Splitit B2B payment solution to its customers in September and sees it as a way to grow its business, especially with small businesses with limited customer resources.

“We believe the Splitit B2B payment solution will be very popular with the 20% of our customers who are small businesses where cash flow is critical,” said Ashwin Ramasamy, co-founder and CMO of PipeCandy. “We hope this will help us grow this segment of our business by 10-20% in the short term.”

“Splitit Business Payments creates a win-win situation for both parties in business transactions by removing costly credit expenses and potential debt collection from the equation, speeding up transactions and growing the business of both parties,” said Gil LevyVice President of Global Marketing, Splitit.

For more information about Splitit Business Payments, visit http://www.splitit.com/business-payments or contact the sales department at [email protected].

About Splitit
Splitit is a payment method solution that allows consumers and businesses to pay for purchases with an existing credit card by splitting the cost into interest-free, no-fee monthly payments, without the need for additional signups or applications. Splitit’s consumer solutions enable merchants to offer their customers an easy way to pay for purchases in monthly installments with instant approval, reduce cart abandonment rates and increase revenue. Splitit Business Payments enables manufacturers and suppliers to provide buyers with an interest-free installment credit solution for the purchase of goods and services using their existing credit cards. Serving many of Internet Retailer’s top 500 merchants, Splitit’s global footprint extends to over 500 merchants in 27 countries around the world. Based at New YorkSplitit has an R&D center in Israel and offices at London and Australia.

SOURCE Splitit Payments Ltd

Related links

http://www.splitit.com

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