Anyone in charge of accounts payable for a company that completes a lot of international B2B transactions knows full well this isn’t always the smoothest process. With the rise of globalization, cross-border payments are becoming the norm, yet the technology needed to make these transactions as efficient as possible is only now just starting to catch up to demand.
As companies transition from paper checks to electronic forms of payment, they are seeking to define the best way to work with international vendors and make the necessary cross-border payments. To this end, cross-border payments have a distinct advantage in some respects: The actual movement of money across borders is relatively simple and direct, with most payments made via wire. This means funds are transacted in virtually real-time, giving businesses access to the funds sent and received almost instantaneously.
However, the process to make cross-border payments is challenging and manual for most middle market companies.
The Challenges of Manual Payments
Automating accounts payable makes all associated processes more streamlined, reducing the amount of time companies have to devote to the more menial and error-prone AP work. This is especially true of handling cross-border wire payments. Indeed, many companies that haven’t automated their AP processes – and therefore have to handle cross-border transactions manually – experience significant difficulties because of the need to handle those payments one by one. Companies without streamlined cross-border payment processes in place often avoid working with international vendors. Even those with some degree of AP automation in place may still be shy about processing cross-border payments as it would require them to contact their banks, thus slowing the process and introducing complexity.
When companies automate cross-border payments – following a similar process as they might with a check or ACH payment – AP managers or controllers can expect greater accuracy on every one of those transactions. Even better, working with an automated payment solution like MineralTree eliminates the need to manually contact the bank handling the transaction, an action which creates critical vulnerabilities and opportunities for miscommunication. By utilizing tools such as accounts payable automation, these same companies can automate wire payments to their international vendors without having to contact their bank directly.
Automation as International Payment Facilitator
The fact is that AP automation has many benefits for companies looking to keep up with recent trends and get a better handle on their finances overall. And with international transactions only likely to become more common, companies can get out in front of the trend and adopt the latest accounts payable software to automate processes. By turning to an industry-leading AP automation solution, companies will be better off when it comes to handling the demands of modern business – both domestically and internationally.