The other main benefit comes from efficiency gains, as Corporate Cards are an automated payment channel that requires minimal manual processing. In this respect, cards compare favourably with traditional payments that include paper invoices, which are slower and costlier to complete due to the additional steps in the process. An automated payment solution reduces both processing charges and labour costs due to reduced time spent on the processing. These savings free up cash, adding to a company’s reserves of working capital.
Both benefits are evident when paying for your business’s digital advertising. Not only is online advertising a major marketing channel for companies across a wide range of industries, but major digital platforms accept cards as a form of payment.
When a company uses a Corporate Card to pay for an advertisement, the payment is settled in just two days. And with 55 days of interest free credit*, the company has nearly two months before it needs to settle the payment. The cash that would have otherwise been tied up in a traditional payment is now working capital that can be used to support other areas of the business.
The working capital gains are also compounded by automation, as straightforward digital processing contributes to cost savings with a reduction in manual invoice processing and payments.
These benefits can be realised in any purchasing category where suppliers take card payments. The result is that HSBC’s Corporate Cards are an easy and immediate solution that can help treasurers manage and optimise cash, with a positive impact that can be felt across the company. They can help improve cash yields and provide convenient financing.
To find out more about how HSBC’s Corporate Cards can help optimise your company’s working capital, please contact your relationship manager. In the next article in this series, we go into greater detail on how Corporate Cards can simplify the procurement process.