4 Reasons You Need a B2B Payments Strategy “The most dangerous kind of waste is the waste we do not recognize.” – Shigeo Shingo
When it comes to B2B payments, there’s more at stake than you think.
While you may not realize it, there is tremendous economic upside if you take a strategic approach to processing B2B payments.
Every invoice your company receives represents an opportunity: an opportunity to capitalize on the rewards of sound planning and execution, or an opportunity to fall victim to the perils of disorganization.
Time spent digging through your inbox to track down loose invoices and chasing down approvals only begins to scratch the surface of the wasted time and energy that is currently victimizing finance departments everywhere.
New automated solutions are changing the way businesses are approaching business payments, and enabling companies to earn returns on every invoice payment that they make. Here are four reasons you should consider adopting the more strategic approach to B2B payments that automated solutions provide:
1. Paper checks are costing you too much
A study by the Credit Research Foundation found that almost 50% of B2B payments are processed with paper checks. MineralTree has found that among smaller businesses in its customer base, this percentage runs even higher.
When you think of all the highly advanced digital payment options in the world today, the idea of paper checks driving business to business payments can seem unfounded. When you think of the fact that digital B2B payments are estimated to cost 90% less to process than paper check transactions, this idea seems even more illogical.
If you’re looking to capitalize on major cost savings like this, switching to digital B2B payments processing should be an easy decision.
2. Time you spend manually entering data could be put to better use
Time is arguably the most valuable resource in the world; so wouldn’t you want your employees to spend it on more valuable tasks while automating accounts payable?
Running multiple processes for checks, ACH payments, and credit card payments is a lot of work and the time to manage each of these effectively starts adding up very quickly.
Establishing an automated invoice processing system has saved companies as much as 64 hours per month, and enabled them to redistribute their employees’ extra time to more strategic and value-added initiatives that ultimately move their business forward.
3. Your bottom line is missing the benefits of corporate cards
There are a multitude of business cash-back credit cards on the market today that can give your bottom line a steady surge of income to improve short-term cash flow, as well as provide working capital extensions available through their credit line.
In spite of these benefits, MineralTree found that one-third of businesses are not using corporate cards as part of their B2B payment system.
Making B2B payments with a credit card can quickly transform your accounts payable team into a tactical profit center.
4. You can capitalize on early payment discounts
The Association for Information and Image Management reported that achieving significant early payments discounts – which provide as much as 2% back on all spending – is an added benefit to implementing an AP Automation system.
In most cases, the only thing preventing companies from obtaining these discounts is the failure to have an organized and streamlined B2B payments process in place.
This is low-hanging fruit that drops right to your bottom line.