Payment solution provider Plastiq has teamed with accounts payable (AP) automation company Tipalti to let companies pay vendors with their business credit cards even if their vendors don’t accept credit cards, according to a Wednesday (Dec. 9) announcement.
The collaboration will allow Tipalti to offer greater value to customers in the mid-market by assisting in bolstering their payment power and cash flow — along with further convenience and increased access to card incentives, according to the announcement.
“Providing Tipalti customers with a flexible, cost-effective way to fund their payables transactions with Plastiq frees up funds to reinvest back into the growth of their business,” Tipalti Co-Founder and CEO Chen Amit said in the announcement.
Clients of Tipalti can unlock as many as 30 to 45 days of cash flow through invoice payments via their credit cards through Plastiq. They can also accrue rewards on costs to the business, including advertising, rent, equipment and inventory.
“The Tipalti partnership opens up a unique market for us for high-velocity businesses,” Plastiq CEO and Co-Founder Eliot Buchanan said in the announcement. “More businesses will be able to use their corporate cards as a funding source while both recouping their rebates and reducing risks associated with accounts payable processes while still automating workload.”
Plastiq has created strategic partnerships with firms such as Visa, Mastercard, US Bank and Silicon Valley Bank.
The news comes as Plastiq joined the U.S. Visa Small Business Hub, which would let it come together with other companies in providing novel, secure and virtual tools to small and medium-sized businesses (SMBs) per news in August.
The Visa Small Business Hub works to help SMBs with beginning, operating and expanding companies. “Helping small businesses is a part of our DNA, so we are thrilled to come together with Visa to support entrepreneurs as they start and grow their businesses in today’s challenging economic landscape,” Buchanan said in a release at the time.