Trade Credit vs Card Credit: Why An Invopak Credit Account Is A Better Way to Grow Your Business

Once upon a time, “Cash was King”, but in today’s competitive markets, “Credit is King”. But not all credit is the same, and it pays to know the difference. A trade credit account offers businesses major advantages over bank credit cards when it comes to purchasing their rigid packaging. It can be a more powerful lever for your supply chain, cash flow, and overall business growth than a business credit card.

True 0% Financing (Avoiding High APRs)

Business credit cards offer a convenient payment buffer, but they come with a sting in the tail. If a client payment is delayed and you carry a balance over to the next month, you are instantly hit with high compound interest rates (often 20% to 30%+ APR).

A trade credit account gives you a guaranteed, interest-free payment buffer (Invopak’s standard credit term is 30 days from the date of invoice). This means you are effectively using your supplier's capital to fund immediate operations, allowing you to secure rigid packaging without paying bank interest.

Credit Limits Tailored to Your Growth

Banks tend to offer conservative credit card limits based on rigid algorithm standards or personal credit scores. A hard card limit can restrict your business if you suddenly need to scale up production for a major client contract.

As a leading rigid packaging supplier, Invopak looks at your actual purchasing volume and business potential. A trade credit account provides tailored credit terms that sync with your production runs, ensuring you always have the immediate backing to order the volumes you need. 

Supply Chain Security and Flexibility

An Invopak trade credit account brings flexibility to your supply chain. It allows you to stock up for busy seasons, helping you plan for demand peaks. It can also be a lifeline for newer firms, enabling them to secure the essential packaging supplies they need to operate.

A credit account can help ensure your packaging is delivered when you need it, so your supply chain keeps running smoothly

Eliminating Hidden Transaction Fees

Paying for large commercial orders via credit card can trigger merchant processing surcharges. These transaction fees can be as much as 2% to 3%. Businesses then either have to absorb these costs or pass them back down to the buyer, which quickly adds up over a financial year of high-volume procurement.

Trade credit eliminates this fee creep. Your billing relies on straightforward, fee-free bank transfers (BACS) against an itemised invoice, ensuring your capital goes purely toward your packaging, not bank transaction fees.

Optimise Your Cash Flow

Credit cards have static, rigid billing cycles that do not take into account production lags. Trade credit terms, however, begin from the explicit invoice date of your delivery.

This allows you to align your cash inflows perfectly with your outflows: you can receive your plastic tubs or metal drums, fill them, ship them, and even potentially collect payment before the invoice for your packaging is due. 

Get in touch with our finance team to set up your credit account

Ready to Upgrade Your Procurement Strategy? 

Setting up a trade credit account with Invopak is simple. You can either select the option to apply for credit at checkout, contact your dedicated account manager, or click the link below:

Click Here to Apply for Your Invopak Credit Account

Once our finance team has reviewed and approved your application, we’ll confirm your terms and set up your account.