You're Taking My Loan?!

July 24, 2018 by Stephen K. Troy in with 0 Comments

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"You’re taking my loan?!"

That’s what AeroPay Express hears when they tell bankers about its new early pay service. 

AeroPay Express’ AP Quick Pay allows vendors to get paid early and still give buyers 'terms of payment,' of up to 90 days, to pay the invoice. Bankers panic when they hear that their customers can pay vendors with their AeroPay Express AP credit line and not use the bank’s credit line.

The truth is, bank customers are not using their credit line to pay vendors early. That credit line is not used unless they are paying COD, which is unlikely. Bank credit lines are being used for accounts receivable financing, expansion, and/or general working capital. A bank's customers’ AP is being financed by the vendors that the customer carries on their balance sheet as an accounts payable liability. It would be unnecessary to use their credit line to pay for goods whereby they are already getting free vendor financing. 

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What AeroPay Express is actually doing is replacing the vendor financing with AeroPay Express financing. Both are free to the buyer. When an AeroPay Express credit line is used to pay a vendor, it’s the vendor’s lender who is losing the outstanding loan, not the buyer’s lender. In essence, if a buyer uses AeroPay Express to pay a vendor, there is no AR generated on the vendor’s books for their lender to finance. The bank or financial institution financing the vendor has lost the collateral they would have used to lend. It is therefore the vendor’s bank that has lost the loan. What AeroPay Express does is to replace the AP on the vendor’s books from owing the money to the vendor to owing the same amount to AeroPay Express. 

If you are a lender and are providing AR loans, you might think about expanding your lending opportunities by offering AeroPay Express AP credit lines. You won’t lose your AR loans because buyers still need them. You will be adding an additional AP line of credit thereby generating new high yield income streams. 

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When was the last time you could offer your borrower a new innovative credit line for free? Yes, free to your customer! How? To get paid early, vendors must agree to take a small discount on their invoice for ‘Quick Pay.’ The discount ranges between 2%-3%, depending on the terms required by the buyer.  

How can a bank get involved with this AP financing? AeroPay Express, like Visa and Mastercard, has developed a co-branded, turn-key solution that the bank can use to electronically process invoices, payments, collections and statements. Through AeroPay Express’ Channel Affiliate Program, the bank has the ability to provide the customer a co-branded AP credit line from $50,000 to $5,000,000. There is zero investment on the part of the bank. When partnering with AeroPay Express, an automated back office is provided to approve loans, buyer and vendor onboarding, invoice and payment processing, and customer service. 

How is AeroPay Express able to provide all of this free? AeroPay Express gets paid at the same as you do by participating in the lending to your customer. When a credit line is established, AeroPay Express requires that we participate in 50% of the loan. That means we have the same amount at risk as our bank partners.  It’s a win/win for everyone. In essence, banks provide the marketing to find the customer and AeroPay Express delivers the servicing.  In addition, all loans are credit insured for safety by the nation’s largest credit insurer! 

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AeroPay Express’ AP Quick Pay is spreading fast throughout every industry. Home Depot, Walmart, T-Mobile, along with most of the Fortune 500 companies, offer early pay to their vendors. Visa, MasterCard and American Express, partnering with Chase, Citi, Wells Fargo, U.S. Bank and others are offering your customers credit lines to pay their vendors early. With AeroPay Express you too can offer a co-branded credit line.

AP Quick Pay is coming to a customer near you. “Don’t close the barn door after the cows have escaped.” Join AeroPay Express, the only co-branded system that allows banks and financial institutions  to partner in Early Pay Loans at no cost and no overhead. Take a minute, give us a call, 800-983-3726.  www.aeropayexpress.com. We will tell you more about how AeroPay Express Co-Branded Early Pay can increase profits and grow your business. 

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