Billing and Payment Methods – LBMX

The following are examples of payment, invoicing, and expense management methods used to improve efficiency and consolidate costs.

Model	Who issues the invoice?	Who receives the invoice?	Who makes the payment to the supplier?	Who carries the credit risk?	What the supplier sees	What the member sees
Direct Bill	Supplier	Member	Member pays supplier	Member (to supplier)	Many individual invoices & payments (one per member)	Normal supplier invoice; member pays supplier directly
Central Bill (a.k.a. Group Bill)	Supplier → Group (summary or line-item by member)	Group	Group pays supplier; Group re-invoices members	Group (primary), sometimes shared via guarantees	One consolidated remittance from the group, with detailed remittance advice	One statement/invoice from the group covering multiple suppliers; member pays the group
Central Pay (Payment Agent)	Supplier	Member	Group pays supplier on behalf of members (agent)	Member (primary); group typically no or limited credit risk	One consolidated payment from group with remittance by member	Member still gets supplier invoice (or copy) but pays the group (or funds via group); no re-invoice from group