Spenda 7 December - 5 min read
Further to this, the BPSP agreement will provide in the near term the ability to interpose a funding partnership into the Customer to Supplier payment cycle and create B2B pay by installment services (or Buy Now Pay Later on standard cost of goods sold trade).
Under this approach, Suppliers would:
As Cirralto is the merchant on record for the payment services, it is able to offer the SpendaCollect service to Customers and enable the batch processing of accounts payments that are integrated with the buyers accounting software.
These funds are processed from the card in a single transaction then deposited into the Cirralto BPSP statutory trust account. To pay each supplier in the batch, the Spenda system then generates a series of credit transactions for each invoice and deposits each of these as unique transactions to speed up the suppliers’ reconciliation processes.
This collaboration between accounts payable and receivable delivers all the benefits to the customer of the ABA file EFT payments with the rapid reconciliation benefits of billing platforms for the seller whilst also creating real-time interaction points for each party to gain instant access to further working capital via instalment and invoice finance services.
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