Commercial Cards Key Topic for B2B
In the past 15 years, the usage of commercial cards has grown considerably
When businesses began to use commercial cards, executives utilized the payment tool in a limited capacity. It was a piece of plastic that could be used by employees for small business expenses like client dinners or travel costs. Today, however, the use of commercial cards has expanded and has become a topic of conversation by executives who are trying to optimize it to improve supplier payment practices.
According to PYMNTS, the cost and administrative headaches that came with this type of card acceptance kept it at arm’s length for corporations who could not see the advantages. But shifting priorities among buyers and suppliers has pushed the opportunity for commercial cards to meet changing cash management needs in today’s B2B environments.
Advantages That Come with Corporate Cards
- 1. Ability to Guarantee Funds
Among the largest benefits of commercial cards is their ability to guarantee funds for a supplier once a payment has been submitted by the buyer and authorized. This is key for vendors who struggle to keep their business capital fluid while they are waiting for payments from their buyers. Funds may not actually be released by a buyer for 30, 60 or even 90 days after the payment has been made and the time lag puts vendors at risk. With commercial cards, the lack of predictability is eased for vendors.
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