The Difference: Quartix Vs Traditional Credit Solutions
With so many credit products out there, comparing Quartix to other alternatives you might currently use or consider using could be confusing.
To help you navigate through these different options, we summarized the most common solutions and grouped them into 3 categories - receivable side solutions, payable side solutions, and direct credit solutions.
Here is how Quartix compares vis-a-vis these 3 groups:
Receivable side solutions such as AR-factoring:
These help you accelerate your customer receivables at a high cost to you (25%+ APR) and involve a lot of paperwork and friction for you and your customers.
Quartix operates on the other side of your balance sheet - the AP side. It allows you to pay your suppliers later at no cost to you (making it easier for you to successfully move vendors from Net30 to Net60 as an example, via the SCF product) or at a lower cost to you compared to AR-factoring rates (funding timely vendor payments through the BNPL product).
- Quartix is a solution for accounts payable, not accounts receivable.
- Quartix impacts your cash flow / working capital similarly - paying $1 30 days later has the same effect as collecting $1 30 days earlier.
- Instead of / in addition to paying 25%+ APR for an AR-factoring line, you can improve your cash flow / working capital with Quartix…
- At 0% cost to you - via our SCF product
- At mid- to high-double digit rates - via our BNPL product
Payable side solutions such as p-cards, dynamic discounting, 2/10/net30:
All of today’s payable-side solutions or arrangements have one goal - helping you capture early payment discounts. And, they do so by using your cash to fund these early payments.
Quartix takes a completely different approach.
Firstly, we use 3rd-party funds to pay your preferred vendors early on demand. This means that your vendors' early payments aren’t funded by your essential cash.
Secondly, Quartix gives you the flexibility to pay your vendors later - by either formally extending payment terms (using the SCF program) and / or by deferring payment using the BNPL solution.
- Today’s payable-side solutions are designed to help you capture early payment discounts using your own cash to fund early payments.
- Quartix uses 3rd-party cash for that, not yours
- Quartix benefits you differently - by providing you with ways to pay vendors later.
Direct credit solutions such as a credit revolver, ABL lines, term loans etc
Our BNPL product is also a direct lending product. However, while most popular direct credit products are secured, our BNPL is unsecured and operates side-by-side with these products. Since it’s unsecured, our BNPL product would typically be more expensive.
Our SCF product operates very differently from direct credit lines. Instead of funding you, it funds your preferred vendors (at their election) to make it easier for you to negotiate longer payment terms with them (increase your Days Payable Outstanding, or trade debt). For example, moving vendors from Net30 to Net60 provides you with 30 extra days to pay them at no cost to you. This means that SCF offers you 0% effective apr compared to direct credit solutions that charge you interest.
- Our BNPL product offers an unsecured credit line that’s easily available to you on-demand, however it is slightly more expensive than today’s secured direct credit products.
- Our SCF product operates very differently compared to direct credit lines. It offers you 0% apr effective financing costs since it helps you to negotiate longer payment terms with your vendors with greater ease.
To summarize, by combining technology, unsecured credit and your real-time payables data, Quartix offers a unique AP-side credit platform that unlocks two different ways for you to pay your vendors later.
Quartix is a flexible tool that can be used instead of / in addition to any traditional credit solution to enhance your financial performance, free up working capital and flatten your cash flow curve.