Paying your suppliers by credit card is a smart financial move that is good for cash flow, financial management and overall expense reduction. But to access these gains, your vendors must first agree to accept your card payments.

1. 3 ways to sell
your suppliers on
credit card payments

2. 2
Paying your suppliers
by credit card can
benefit your business via:
Improved
cash flow
Better
managed
finances
Reduced
expenses

3. 3
Both you and your
bank can play a role
in making that
happen.
Before you can
unlock those benefits,
your suppliers must
agree to accept cards.

4. 4
Your bank helps through
“supplier enablement”
— working with you and your
suppliers to facilitate the transition
to electronic payments.

5. 5
Your most
important job?
See the issue from
your suppliers’
perspective — so you
can explain how
this change will benefit
them.

6. 6
#1
Shorter payment terms

7. 7
For example:
If you usually pay in 60 days
by check, offer 14 days by
card. That provides a cash
flow boost to offset the
payment fees.
Your suppliers will
incur a small card
processing fee.
Offer early payment
or shorten payment
terms so they can
further benefit.

8. 8
BONUS:
Those funds are
guaranteed and payment
is typically funded in 24-48
hours, unlike snail-mail
paper checks.

9. 9
#2
Simplified accounts receivable

10. 10
Checks require the supplier to:
1. Open envelopes
2. Reconcile payments
3. Endorse checks
4. Make deposits
5. Wait for funds from
check processing
Accepting cards
saves them time
and money.

11. 11
The best solution:
VCNs
Virtual card numbers (VCNs) are unique,
16-digit numbers generated for specific
transactions.
VCNs are the most secure and fraud-
preventative credit card transaction
VCNs make it easier to identify and
reconcile each payment.

12. 12
#3
A safer payment process

13. 13
Checks are
most vulnerable.
of companies
surveyed have
experienced check
fraud or attempted
check fraud.
71%
— Association for Financial
Professionals
2016 report
Q: Why should your suppliers
care?
A: If you are targeted, their
payment will be delayed while
you sort out the problem.
Card payments
reduce that
risk.

14. 14
Key takeaways:
 You can offset your suppliers’ transaction fees by
offering shorter payment terms.
 Card payments (especially VCNs) streamline
accounts receivable.
 Card payments are safer.

15. Facilitating new payment setup
3
15
Your bank may provide supplier enablement services like:
Explaining benefits
2
Contacting suppliers
1
But …

16. 16
… you can contribute by
understanding your
suppliers’point of view
and explaining how they
benefit.

17. 17
BONUS:
Enhance your supplier
relationships.
Creating a faster, more secure payment process can
strengthen your ties with suppliers — which is good for
your business and theirs.

18. SVB’s Global Treasury and Payments Advisors can share
more details about supplier enablement.
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Financial Group, used under license. B-16-15179 Rev. 02-16-17.
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