Global B2B payments and invoicing network TreviPay announced the launch of its Small Business Supplier Network (SBSN) across the United States, the industry’s first payments network built for banks and their small business customers. Following TreviPay’s recent launches of specialized networks for large enterprises and midmarket businesses, the SBSN completes TreviPay’s objective to meet the needs of businesses of all sizes.
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 new white-labeled structured financial service to small business suppliers that sell to business and government entities on invoice payment terms. TreviPay, which has a legacy of being the preferred B2B payment method of thousands of corporate sellers and their buyers around the world, will partner with banks to empower small business suppliers to offer flexible payment terms to their customers while getting paid virtually real-time and risk-free without incurring debt.
According to research commissioned by TreviPay, American small businesses with 100 or fewer employees extend approximately $5 Trillion 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) – the original “buy now, pay later.” 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.
TreviPay’s SBSN allows member banks to expand their current small business product offerings by providing a safe and profitable way to tap into the largely unpenetrated small business B2B trade credit market, arguably the largest growth opportunity for small business banking. With SBSN, member banks can customize their solution, define and support their go-to-market strategies, control and manage their risk policies and set supplier fees, all while managing to their established exposure targets, growth rates, and profitability. Additionally, by joining the SBSN, banks can launch this new product without capital investments or technology integrations.
“Our vision for the Small Business Supplier Network is to create the technological infrastructure and operating model to deliver a new structured financial solution capable of eliminating small business trade credit the same way the credit card networks virtually eliminated B2C trade credit for retailers,” said Rissi Lovern, Head of Small Business Markets at TreviPay. “Working together, 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 U.S. 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 U.S. small business market, we can strengthen the backbone of small businesses.”
