Does your business belong to a consortium? Maybe it should, especially if the consortium is organized to put more money into your business each year, by making one small change in the way you pay for purchases.

The dictionary defines a consortium as “an association, typically of several business companies.” Nevada State Bank has established a payments consortium for healthcare providers, including physicians, dentists and veterinarians. There is also a consortium card for non-profits. Through their Consortium Commercial Card program, these companies can share the benefits of using a commercial card for purchases instead of writing checks.

The Consortium Commercial Card is a charge card, not a credit card — meaning cardholders pay off the balance routinely, sometimes several times a month. Paying by card instead of check has many advantages. With the Consortium Commercial Card, you can earn revenue share on expenses you’re currently paying by check.

That can include payments for medical supplies and equipment, as well as everyday purchases like office supplies, utilities, breakroom coffee, and printing. The card can also be used to pay for services like IT support, temp agencies, and legal services.

With the Consortium Commercial Card, your business can earn revenue share on every payment you make. And, aggregating your payment volume with the volume of other consortium members can increase the money you get back. Every time the consortium reaches a new payment tier, your individual rate of return grows.

“Look at your company's checkbook,” advised Kim Stiles, Nevada State Bank SVP/treasury management sales manager. “What’s the dollar amount of the payments you make by check? Would you like to get cash back for a percentage of all those expenses? With enough extra money, you might be able to offer additional benefits to your employees, upgrade your equipment, or hire more staff.”

Stiles added that writing a check is the most expensive way to pay a bill. “On average, it costs a business between seven and eight dollars for each check, counting the cost of supplies, postage and labor,” she noted. “In addition, you don’t get anything back when paying by check.” She added that Consortium Commercial Cards have no annual fees, and nearly all card services are offered at no cost to the cardholder.

The Consortium Commercial Card can also simplify expense management and increase efficiencies. Cardholders can track expenses and upload receipts by using an online expense management system or a mobile app. You can manage card accounts, set individual credit limits for employees, generate customized reports and more, from the convenience of your computer. You can import card information into most accounting systems, saving you time and reducing the chance of posting errors.

Support is a valuable part of being a Consortium member. A specialized support team can make implementation seamless and simple. You can also connect with other businesses like yours to share best practices and learn from one other about ways to increase efficiencies by using the Consortium Commercial Card. By joining with others in the consortium, you may even be able to negotiate better terms with high-volume suppliers.

For more information about the Consortium Commercial Card for healthcare professionals, visit nsbank.com/consortium.

 

The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank, a division of Zions Bancorporation, N.A. Member FDIC