Following the launch of its specialised networks for large enterprises and midmarket businesses, TreviPay has now met the needs of all businesses with its Small Business Supplier Network (SBSN).
The B2B payments and invoicing network has confirmed the launch of its SBSN across the United States.
As a fully integrated, end-to-end payments network running in parallel with card payments, the SBSN enables banks, as members of the network, to deliver a white-labelled structured financial service to small business suppliers that sell to business and government entities on invoice payment terms.
The launch will partner TreviPay with banks to offer flexible payment terms to the customers of small business suppliers, while ensuring that the supplier gets paid virtually without incurring debt.
TreviPay’s SBSN will allow member banks to tap into the small business B2B trade credit and business banking market with new small business product offerings.
Members can customise their solutions and go-to-market strategies, manage their risk policies and set supplier fees.
Additionally, banks can launch this new product without capital investments or technology integrations.
According to the company’s research, small businesses in the US with 100 or fewer employees extend approximately $5trillion in B2B trade credit to their business and government customers every year when allowing them to pay on invoice terms (e.g., net 30, 60, 90+ days).
Extending trade credit to business customers is commonplace and often considered necessary to remain competitive, attract new or larger customers, and deepen existing relationships, all while building loyalty and driving retention.
However, small business suppliers still fund most of the trade credit they extend from their own working capital. This long-standing, inefficient use of their limited cash flow is ultimately an impediment to their growth and resiliency.
The company’s SBSN sets to create the technological infrastructure and operating model to deliver a new structured financial solution capable of eliminating small business trade credit, which Rissi Lovern, the company’s head of small business markets, describes as “the same way the credit card networks virtually eliminated B2C trade credit for retailers.”
“Working together,” Lovern continues, “TreviPay and member banks have a real opportunity to transform the inefficient B2B trade credit market and give small businesses a better way to do business so they can re-secure their position in the US economy.”
“Over the last 20 years, we have seen the small business trade credit market become increasingly stretched with cash flow pressure building to intolerable levels. This is especially true when small businesses are on both the extending and receiving end of trade credit,” continued Lovern.
“With every recession or economic downturn, this phenomenon creates a long and arduous road to recovery. By combining the strength and reach of our financial institution members with TreviPay’s proven B2B payments network and our mutual care for the US small business market, we can strengthen the backbone of small businesses.”