Source: RightPath Payments
RightPath Payments, a company which combines online payment technology with bank credit, announced today that it has signed a definitive alliance agreement with Crowe Chizek and Company LLC.
Crowe will have an exclusive right to market and sell RightPath's flagship product, Business Payment Connection, to financial institutions in the United States.
Business Payment Connection (BPC) is a web-based payments solution that links buyers, sellers, and banks through a secure portal. Unlike other payments solutions, BPC uses bank credit to accelerate seller payments and provide longer terms for the buyer. BPC allows each party end-to-end visibility on all transactions. The companies will offer this application, through banks, to business customers burdened by paper-based processes and the need to extend interest-free trade credit.
"Crowe is the premier accounting and consulting firm for the banking industry. With this agreement, our companies have a unique opportunity to combine Crowe's industry knowledge and delivery expertise with RightPath's BPC to offer a high quality, much-needed product to banks' small business arsenal," stated Dennis Lynch, CEO and Chairman of RightPath Payments. "BPC will help small businesses grow by eliminating their need to extend interest-free trade credit to buyers and then wait up to several months for payment, "continued Lynch.
"BPC will offer financial institutions a unique approach to helping their commercial customers build sales and speed cash flow," states Terry Johnson, an executive with Crowe. "This solution will strengthen the relationships between buyers and sellers, while growing the financial institutions' small business market share. Banks will realize both interest income and fee revenue and add value to their small business segment."
Why should financial institutions care?
RightPath found that trade credit, despite its inefficiencies and negative impact on sellers' drain on cash flow, remains the dominant financing method for small businesses. BPC was designed to specifically replace traditional trade credit with a payments system that incorporates bank credit. RightPath's flexible technology strengthens the relationship between buyer, seller, and lender by giving all parties full online access to transaction information.