Priority Technology Holdings and its Priority Payments Systems and Priority Commercial Payments units are working with business-to-business credit provider Behalf Inc. to allow Priority clients to finance purchases at checkout through Behalf rather than through cash, check, or credit card.
The move comes as many small businesses continue to contend with the effects of the pandemic and the usual demands of maintaining their cash flow.
New York City-based Behalf, which started in 2011, says it extends no-fee terms and financing, for 30 to 90 days, to merchants. Behalf says its pays merchants directly. The financed amount is paid back weekly or monthly and is drawn from the business’s deposit bank account. Typically, the financed amount is assessed a 2% fee by Behalf, though that rate may vary.
“Businesses are looking for flexibility and choice of payment terms when paying their suppliers,” Christina Wagner, Priority Commercial Payments senior vice president, said in a statement. “Cash flow is top of mind, and Behalf offers an elegant way to improve working capital for our 200,000 business clients across the Priority family of companies.”
Sales agents, according to Behalf, can send merchants a link to apply for its financing. The merchant can choose to receive funds via a virtual card or automated clearing house payments, and, if approved, be funded on the next business day.