THE SUPPLYCHAIN INTERVIEW
“ By paying tail-end suppliers with a card , our clients don ’ t have to onboard them ”
Billhop ’ s partner programme is seamlessly tailored for card issuers and solution providers seeking to enable card payments
SEBASTIAN ANDREESCU TITLE : CEO COMPANY : BILLHOP INDUSTRY : FINTECH
Andreescu founded Billhop over a decade ago . He is experienced in payments , financial services , financial technology , change management , business strategy , negotiations and strategic procurement . do not accept card payments – something that is true for the vast majority of B2B suppliers .
The fees that are involved in using card rails are often offset by the earlypay discounts that suppliers offer our enterprise clients as an incentive to getting paid faster .
For instance , Enterprise A will typically pay Supplier B after 60 days . Supplier B offers a 2 % early-pay discount if Enterprise A pays after 10 days .
Using Billhop , Enterprise A pays Supplier B after 10 days with the bespoke card they have received from their commercial bank , which has a 90-day interest-free payment period . The fee that is incurred for the card transaction – including Billhop ’ s margin – is lower than the 2 % discount offered by the supplier .
The enterprise client has effectively extended their DPO from 60 days to 100 days , paid their suppliers on time , and fully offset the cost of paying by card . ( Note : These figures are purely illustrative ).
22 December 2023