How HSBC’s B2B Payment Facility streamlines payments and enhances cashflow

The world of commerce is evolving rapidly, with supply chains being reshaped in an era where agility, flexibility, and resilience have become essential to competitive business strategies. As companies increasingly engage with complex global supplier networks – often comprising partners of varying sizes – there is a growing need for financing tools that offer reliability, speed, and versatility.

In recent years, the use of commercial card and virtual card payment solutions for large strategic transactions has accelerated. These methods deliver a range of significant benefits including enhanced fraud protection, improved payment terms such as early-settlement discounts, richer data to support reconciliation and the ability to free up working capital to support day-to-day operations.

However, card payments are not always an option. Some suppliers may be reluctant to accept cards – either because they prefer not to absorb transaction-related costs or because card acceptance does not align with their pricing model. This presents a genuine challenge for corporates seeking both efficiency and payment flexibility.

To solve the challenge of supplier card non-acceptance, HSBC UK has developed its B2B Payment Facility – a streamlined solution that enables customers to extend cashflow by leveraging their purchasing card credit line to make direct bank transfers to suppliers. This approach retains the benefits of early settlement while removing the barriers associated with traditional card payments.

The facility allows customers to fund transactions using their card credit line rather than a traditional card payment. This eliminates merchant transaction fees for suppliers and can reduce overall costs for customers compared to standard card payment structures. For suppliers, the experience is seamless: funds arrive directly into their bank accounts just like any other payment.

“Many of our corporate clients want the flexibility of card-based financing, but the issue of supplier non-acceptance has only grown in an era of increased supply chain pressures,” says Matthew Hall, UK Head of Corporate Cards, HSBC Global Payment Solutions.

“This facility allows them to keep the commercial advantages of card solutions while paying suppliers in a more convenient and frictionless way.”

A survey of business leaders by Mastercard found that nearly half of suppliers expect buyer demand for card payments to increase over the next five years¹. While the use of card payments can be valuable for suppliers seeking early and secure payment options, many are reluctant to fully embrace these methods. However, there is a growing appreciation of the need to meet buyer expectations while navigating the potential challenges of card acceptance.

On the buyer side, there’s growing recognition of the efficiency and cashflow advantages that come with improved payment processes, with 94% of business leaders saying that improving payment efficiency directly benefits profitability².

The B2B Payment Facility is particularly valuable at a time when payment flexibility and access to working capital are strategic priorities for many corporates. The supplier benefits from the receipt of timely payments without incurring transaction changes, while the buyer gains the ability to spread repayments over an extended period and potentially negotiate early-settlement discounts.

Powered by HSBC’s in-house technology, international payments expertise, and market-leading financing capabilities, the facility enables customers to use their credit lines more dynamically – without impacting working capital positions – all directly via HSBCnet.

“Corporates are looking for tools that help them unlock liquidity while strengthening supplier relationships,” adds Hall. “This solution gives them exactly that: a smarter, more flexible way to manage large-scale payments.”

The HSBC B2B Payment Facility is an important evolution of the payment methods supported within HSBCnet, and compliments existing products such as Purchasing and Virtual cards, and is a critical tool for working capital optimisation. Many clients use this facility to make strategic payments within the financial year as well as support daily supplier transactions, demonstrating the versatility of this solution.

By accessing the B2B Payment Facility directly within HSBCnet – subject to credit status – customers can extend Days Payable Outstanding (DPO) and strengthen supplier relationships as part of their existing financial workflow. This provides a comprehensive suite of payment solutions that empowers corporate treasurers to strategically manage liquidity and improve payment efficiency.

Important Note: Use of the HSBC B2B Payment Facility is subject to eligibility, credit approval and specific product terms.

¹https://www.mastercard.com/global/en/news-and-trends/stories/2025/commercial-card-acceptance.html

²https://www.digitalcommerce360.com/2025/07/30/commercial-card-payments-b2b