Technology has changed that way that B2B functions on a daily basis, making transactions and processes faster than ever before. The exchange of data saves businesses time and money and creates secure payment system that are easily managed. The B2B payment process relies heavily on technology working the way that it should; when there’s a glitch in the system, it can slow things down and create big monetary losses for businesses. When a company has issues with their payment functions, a small issue can turn into a major problem leading to lost revenue, frustrated clients and a breakdown in customer relations.
One of the biggest issues that B2B’s have is getting paid on time. Using E-invoicing is the most precise way to bill your clients accurately. E-invoicing gives your client an easy to understand invoice in a timely manner. Conversely, E-invoicing will make it easy for the accounts receivables department to track overdue payments and contact the appropriate parties.
Once E-invoicing is in place, it’s time to look at what kind of payments are received. Are clients paying by check, cash or money orders? Making it easy for the client to pay you should be a top priority. It’s possible that your clients want to pay you with a type of credit card that you don’t accept and it’s causing a problem for both of you. The solution to this problem is to take mobile payments. Apple Pay and Android Pay are gaining popularity because of they are easy to use.
Another issue that can occur in the B2B payment process is that there are too many people involved in the accounting functions of a single transaction. This can lead to frustration when something goes wrong and too much time spent trying to resolve the issue. B2B’s can solve this problem by using a corporate payment management platform. The idea behind the payment management platform is that it gives employees a complete picture of the transaction at hand. All the information is available such as the invoice total, payments due and who has been working with the invoice.
In today’s technologically advanced world, online security is a number one priority for B2B managers. Clients should feel protected knowing that your company is doing its utmost to secure their data in all online transactions. This is where blockchain technology comes in. Blockchain encrypts data before sending it and ensures that no information is deleted or added in the process. Using blockchain encryption is a must for today’s B2B.
Finally, there are costs involved with payment transactions that should be addressed. Payment by check is a favored payment method but the transaction cost is $3 per check processed. Debit runs at 1.5% of the transaction and credit is 2% of the transaction. Wire transfer fees are high at $14 per payment with ACH payments being very low at 25 cents. B2B’s should assess their needs to find the best payment methods for them.