Businesses Seeking to Further Reduce Paper-based Check Payments
New J.P. Morgan report identifies opportunities for companies to broaden use of commercial card payments to improve working capital, increase rebates and pay suppliers sooner
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Eduardo Vergara
Filling in the Gaps
Single-use Accounts
- Companies are looking beyond traditional spend categories and targeting non-traditional suppliers for purchasing card payments. Some companies are capturing higher rebates and paying vendors more quickly by using purchasing cards to pay for temporary employment services, utilities, employee drug screening, on-premise security services, legal service providers, advertising and modeling agencies.
- Companies using single-use accounts report results such as more efficient A/P processing, improved fraud protection, increased working capital and larger financial rebates.
- Single-use account rebates can be significant. Some companies are earning 1 percent on their larger, indirect purchases.
- Participating suppliers can be paid 15 to 20 days earlier through single-use accounts, improving the company's days payable outstanding.
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