1st Commercial Credit Affiliate Launches Digital Supplier Payment Platform
Vendor Pay Express, an affiliate of 1st Commercial Credit, has launched a digital platform for B2B transactions that provides faster payments to suppliers and interest-free credit lines to buyers.
With this new digital supplier payment platform, suppliers receive accelerated payments by accepting what the company describes as a small discount from the invoice amount, while buyers maintain their negotiated net terms and get access to an unsecured line of credit solely for vendor payments, the company said in a Friday (Aug. 22) press release.
The Vendor Pay Express offering is based only on the buyer’s creditworthiness and credit insurability, according to the release.
Buyers access this solution through an automated, online platform that provides real-time visibility to both buyers and suppliers, and they don’t need to deal with a lengthy application, liens or capital, the release said.
This solution is designed for the mid-market, including buyers with as little as $20 million in annual revenue, per the release. It is likely to be used by companies in the manufacturing, wholesale distribution, retail supply, produce, construction and service industries.
“Our goal is to simplify supplier payments while empowering buyers to keep cash flow intact,” Raul Esqueda, president of Vendor Pay Express and 1st Commercial Credit, said in the release. “Unlike traditional factoring or reverse factoring, our solution is interest-free for buyers and transparent for suppliers, building stronger relationships and supporting growth across the supply chain.”
The PYMNTS Intelligence report “2024-2025 Growth Corporates Working Capital Index: North America Edition” found that North American middle-market companies are making increasing and more strategic use of external working capital solutions.
The report found that 8 in 10 middle-market companies used working capital solutions, with the share of firms using them increasing 18% in the United States and 10% in Canada.
It also found that many expressed a desire for smoother, digital-first application processes and personalized, adaptable financing options.
In some other recent additions to its offerings, 1st Commercial Credit said in March that it began offering receivables-based financing for employer of record (EOR) companies as well as a program called 2nd Position Factoring for businesses that have an existing bank loan and require additional working capital without disrupting that lending relationship.
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