Customized B2B credit programs

Trade credit—or net terms—is a form of commercial financing that's required to be paid in full typically within 30, 60 or 90 days. The credit is often extended on an open account and payable via an invoice or statement, which can be paper or digital.

A credit card is a payment method used for making purchases at many vendor companies. It comes with a summary statement bill (with no purchase detail), which is payable all in one cycle or revolves with an APR fee. The credit line can be shared for all purchasing needs, which can limit available credit for business purchases with any one supplier. Capital One Trade Credit provides an open account between the seller and buyer with a dedicated line of credit for that purchasing relationship. It's underwritten on the business with a business-sized credit line. It can be billed by invoice for each purchase or as a monthly statement, which does provide purchase detail such as Level III data. Our solution also provides all necessary support, such as real-time decisioning, cardless omnichannel purchasing, upfront funding on the sale, billing, servicing, collections, cash app (to support the entire AR lifecycle) and account management tools for merchants and their customers.

With factoring, a company sells its invoices or AR to a third party, which provides cash up front to the company and then tracks down payment on the invoices. With our solution, we manage your AR for you and pay you up front, but we don’t purchase your invoices or AR. Instead, we partner with you through the longer term and manage all steps throughout your AR lifecycle. That includes mitigating credit risk and using technology and people to grow sales, improve processes and remove friction in the overall B2B experience. We also offer underwriting for customers and funding for merchants, which is not provided by factoring companies.

Automated AR software typically only specializes in one or two areas of AR, such as invoicing and payment portals. Capital One Trade Credit offers a full-service AR solution—everything from credit application decisioning and underwriting to invoice generation, cash application and collections. We can also service your customer base, reduce risk and provide fraud monitoring.