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Bryan Joy
Business Manager
Trade Credit Express

800-397-2380 x34
800-573-5402 fax
bjoy@vantagecard.com

Trade Credit Express

Trade Credit Express Brochure Trade Credit Express Demo Capital Flow Model Demo

Trade Credit Express is a business payment platform to outsource your accounts receivable administration and trade credit financing, providing your business with the payment speed of accepting a credit card while extending improved trade credit terms for you customers.

About Trade Credit

Accounts receivable (A/R), sometimes called trade receivables or trade credit, is the amount that customers owe a company for goods and services that have been provided. In most business entities this is typically done by generating an invoice and delivering it to the customer which is to be paid within an established timeframe called credit or payment terms.

Of the $45 trillion of debt in the U.S. economy, A/R (trade credit) is the only significant category that is not managed by financial institutions. Annual trade credit volume granted by sellers, at $3.2 trillion, is four times the total of all credit card receivables.

Why Trade Credit

Traditional availability of free and flexible trade credit is a primary source of funding of most businesses in the US . More than 90% of B2B companies depend on trade credit as their largest source of capital than any other source – more than bank debt or owner's equity. The reasons are simple: trade credit is free (interest is rarely charged), it is flexible (terms are regularly abused) and it is easy to get (if one vendor doesn't provide, the next vendor will). Business buyers will seek out vendors that give the longest payment terms because it is the easiest and least expensive way to fund a business.

Trade Credit Innovation

Tightening credit markets means changing policies. Small and midsized businesses (SMB) are finding it harder and more expensive to borrow as banks set higher rates, seek more collateral and lend smaller amounts. While financial institutions fund 97% of consumer credit in the United States , they fund only 15% of the trade credit, primarily due to the perceived risk associated with lending to SMB companies.

Using the credit guarantee and processing services of FTRANS, through the payment platform known as Trade Credit Express, the accounts receivables of a business client are transformed into a secure and liquid collateral against which the banks can lend with confidence. This is accomplished by having FTRANS purchase the account of the business client and thereby assume the obligation to pay to the lender the face amount of the invoice representing the account, less fees. Through this mechanism, FTRANS unlocks what is frequently the largest asset of a business to be used as secured collateral, thereby increasing the base upon which a bank can safely lend.

The FTRANS system enables B2B sellers to outsource their A/R (trade credit) to banks and A/R solution providers that can manage and fund credit more economically – on a larger scale with more expertise, better systems, and a lower cost of capital. This innovative credit system alternative is often less than the cost that many SMB suppliers currently pay to run their internal credit operation.

Learn More

As specialist in B2B payments, we understand the many challenges of running a successful business. We invite you to learn more about Trade Credit Express and discover the value that many other businesses are realizing. It's easy to get started and there are no long term contracts or cancellation fees. For personal assistance and review of a detailed proposal to outsource your trade credit administration and financing, please contact Bryan Joy.

Vantage also provides Level 3 purchasing card acceptance, so small and mid sized businesses (SMB) can take card payments and continue to offer trade credit. Both costs about the same and provides funds in about the same time.