Technology has changed how B2B functions daily, making transactions and processes faster than ever. The data exchange saves businesses time and money and creates a secure payment system that is easily managed. The B2B payment process relies heavily on technology working as it should; a glitch in the design can slow things down and create big monetary losses for businesses. When a company has issues with its payment functions, a small issue can become a major problem: lost revenue, frustrated clients, and a breakdown in customer relations.
One of the biggest issues that B2Bs 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 promptly. 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 determine the payment received. Are clients paying by check, cash, or money orders? Making it easy for the client to pay you should be a top priority. Your clients may want to pay you with a type of credit card you don’t accept, 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 they are easy to use.
Another issue in the B2B payment process is that too many people are involved in a single transaction’s accounting functions. This can lead to frustration when something goes wrong and too much time spent trying to resolve the issue. B2 B can solve this problem 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 working with the invoice.
In today’s technologically advanced world, online security is a top priority for B2B managers. Clients should feel protected knowing your company does 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 no information is deleted or added. 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 favored, but the transaction cost is $3 per check processed. Debit runs at 1.5% of the transaction, and credit is 2% of the trade. Wire transfer fees are high at $14 per payment, with ACH payments being meager at 25 cents. B2Bs should assess their needs to find the best payment methods.
