January 13, 2015
Comdata, Behalf, MasterCard collaborate to help SMBs
Brentwood, Tenn.--Comdata is collaborating with Behalf and MasterCard to offer a more flexible and convenient way for small- and mid-sized businesses (SMBs) to pay their vendors. The initiative helps improve cash flow for SMBs by providing payment terms to SMB’s for their payments to merchants that currently accept MasterCard and are approved for participation by Behalf.
With Comdata and MasterCard’s partnership, Behalf’s product benefit adds the ability to use a unique, secure virtual card for both point of sale and online purchases while receiving convenient payment terms.
Currently, Behalf provides simple working capital lines to small businesses to help bridge the cash flow gap between when they have to pay a vendor for a purchase –typically within 30 days – and the time it takes to generate revenue from that purchase. To cover this gap, Behalf will pay an SMB’s vendor invoice of up to $10,000 per purchase, and the SMB then pays Behalf back over up to 120 days. SMBs receive favorable rates and terms while their vendors benefit from more rapid cash flow, lower risk of fraud, fewer credit losses and increased sales.
Bob Sneed, senior vice-president at Comdata, describes the business relationship as a win, win for small businesses. He noted that Comdata and Behalf share a common vision that innovation in payment technology can dramatically increase the rate of growth of small businesses.
“Our unique virtual credit card technology makes Comdata the perfect payment processing partner for Behalf’s expansion,” Sneed says. “Small businesses can pay their vendors quicker, while earning cash incentives just by paying their bills that can contribute to their bottom line. It’s a win for vendors as well as the small business.”
Behalf’s CEO and founder Benjy Feinberg notes that the growing demand for Behalf among SMBs is a clear indication of the critical need that it meets in the marketplace – simple, fast, flexible and secure purchase financing.
“Our partnership with Comdata and MasterCard will dramatically improve the usability, reach and security of what is already a great product,” Feinberg says. “We can’t wait to bring MasterCard’s merchants onto our vendor platform, making it easier for small businesses to purchase the goods, services and supplies they need.”