What is BlueTape Automated Trade Credit and How to Take Advantage of This Feature?
Automated Trade Credit accelerates payment processing by circumventing the need for prequalified customers to review and approve each invoice, enabling BlueTape to speed up invoice payments.
Why Use Automated Trade Credit?
With Automated Trade Credit, you’ll enjoy faster approval and processing times. You’ll also be able to rely on 3-business-day payment for approved invoices, barring any errors or disputes, which is much faster than in-house 30-day terms.
How Do I Use Automated Trade Credit?
Step 1. Turn on Automated Trade Credit
Automated Trade Credit is a special feature that needs to be enabled by BlueTape. This feature is selectively enabled to ensure it’s tailored to your needs.
To get started, provide the BlueTape Customer Success team with a list of customers that you’d like to put on the Automated Trade Credit program. You have the option to add all of your customers to the program or choose a select number of customers.
Step 2. Automated Trade Credit Default Settings
The default settings for the Automated Trade Credit feature are:
- Default amount for Automated Trade Credit is for invoices up to $10,000
- Default terms: 30 days - 0% fees for the customer
You have the option to customize the threshold amount and payment terms. Approval is subject to your pricing package and the customer’s risk profile.
Step 3. Send Invoices as Usual
After Automated Trade Credit has been activated for your customer(s), continue sending invoices as usual. BlueTape will approve the invoices without your customers having to log in to review the invoice first.
Step 4. Draw is Approved
BlueTape will receive immediate notification and start processing the invoice request. Upon approval, you and your customer will be notified that the invoice is being processed. You can check for a “Pending Disbursement” invoice status on your dashboard.
Step 5. Disbursement is on the Way
After four business days of approval, BlueTape will disburse the payment, and you'll receive another notification that the funds are on their way. You can also check the status of the invoice in your dashboard by looking for “Payment Processing”.
Please note: Your customer has 3 business days after the invoice submission to dispute the invoice.
Frequently Asked Questions
What if the customers reach their credit limit?
The credit request will be rejected if the amount exceeds the current credit available for the Line of Credit. The customer will be offered the option to pay in full with ACH or credit card.
Does Automated Trade Credit work for statements?
Yes, it will, once monthly statements are in place. Monthly statements will include all the invoices (please keep in mind that invoices should not be older than 30 days) that have been approved for Trade Credit during the month.