22nd June 2022

All business owners, regardless of their size and niche, know this: effective cash flow management is the cornerstone for the healthy growth of one’s company.

Yet, companies continue to be plagued with the question of how best to reduce the time between cash payables and receivables. It is especially challenging for small businesses to free up their working capital and combat liquidity shortages. This is where the use of corporate credit cards can provide an elegant solution to these problems.

Traditional Use of Corporate Cards

Corporate credit cards are traditionally used by employees for business-related and smaller T&E expenses. While using company cards is quick, fuss free and undercuts all the red tapes employees will otherwise be faced with to get their expenses approved, companies often find they are restricted to payments that provide a physical or virtual POS system.

Paying with credit cards can also allow you to bridge liquidity gaps without having to chase for payments. In the long run, this will help foster strong consumer-supplier relations. By using cards for larger B2B purchases, you can enjoy the same ease of transaction and gain greater control over your working capital.

Low Card Acceptance Rates

While using corporate credit cards may seem like the natural solution to many companies’ liquidity flow predicament, why aren’t more businesses paying their suppliers with credit cards?

It all boils down to one main pain point – card acceptance is lower than 15% within the B2B space. According to a survey conducted by First Annapolis Consulting, 67% of suppliers cited high credit card processing fees as the largest deterrent to offering credit card as a payment method. Chances are that your B2B supplier may be reluctant to invest in a system that accepts credit card payments.

Enter Billhop

This is where Billhop comes in. Register an account with Billhop and pay any invoice with your credit card, even if your supplier does not accept card payments.

As an added bonus, your end recipients and suppliers do not need to sign up for Billhop, nor do they need to make any changes to their existing payment processes in order to receive remittance.

Pay with Credit Card Today!

With the unexpected advent of working from home culture, more and more businesses are looking into hassle free, online payment suppliers that fit seamlessly in today’s increasingly digitised climate. Billhop’s payment platform brings the flexibility of card payments to any supplier or vendor invoice - without any onboarding or supplier action involved. This means that as a business you can access all the benefits that your existing credit cards offer without the hassle of coordinating with each of your suppliers.

For SMEs and startups, the added flexibility provided by their corporate credit cards’ grace period means being able to expedite the payment to suppliers while increasing their chances of accessing early payment discounts.

At the end of the day, if we can reap the benefits of making payments with credit cards as individual consumers, what’s stopping businesses from doing the same?

Pay your suppliers on time with Billhop today and enjoy all the perks and interest-free periods that your credit card has to offer.

Register for your free Billhop account or learn more here!

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Billhop AB is a Swedish payment institute, authorised and regulated in Sweden by the Swedish Financial Supervisory Authority. We are exempt from the prohibition, in regulation 138 of the UK Payment Services Regulations 2017, on providing payment services in the United Kingdom and we are not authorised by the UK Financial Conduct Authority. Billhop upholds industry best-in-class security standards including 2FA and issuer security solutions such as 3DS. All client funds are safeguarded through standard client funds account setup.