In today’s modern business world, the technology that now exists and allows for digital payments to be made delivers more than simple cost-efficiency for companies within the Business-to-Business Supply chain. It also creates better value by changing the way in which suppliers and buyers find each other and carry out business together. The right B2B payment systems, which harness the latest cutting-edge tech, can make an enormous difference in the way businesses operate within a competitive marketplace, and can have a major impact on the success of the organization in the long term.
The Challenge Of Traditional Payment Methods
A shockingly high number of major organizations around the country are still relying on traditional paper invoicing methods, as well as the BACS system, in order to pay suppliers. Although there are a few advantages to taking this approach, the way in which standard terms of payment are stretched in many sectors (and especially within the construction industry) causes problems for suppliers. Yet, while it seems obvious that a supplier is at a clear disadvantage when it only has access to the traditional B2B payment system, in fact, this model isn’t especially beneficial to buyers either. The large amount of capital required and human resources necessary to put in place and then maintain an administration-heavy process for supply chain financial matters means that buyers often find it difficult to get new suppliers onboard. This leads buyers to begin to resist change and limit their choice of suppliers to only a fraction of the market, restricting their options substantially.
The good news is that integrating digital forms of payment and the increasing popularity of accepting B2B credit card payments within supply chains has started to bring about dramatic changes. Through the efficiency and simplicity of an online payment platform, both suppliers and buyers can benefit.
By accepting card payments, huge chunks of the payment process is able to be streamlined and automated with the result that the administrative workload for both suppliers and procurement teams is significantly reduced. The best processing platforms for B2B payments are available to both suppliers and buyers 24 hours a day, seven days a week, and include all the details about previous and upcoming payments to remove complexity and uncertainty from payment processing.
Bringing Merchants Onboard
With onboarding services that are fully managed from end to end, an online payment platform can circumvent all the conventional process overheads that buyers usually face. This means that they can onboard merchants rapidly to create a connected business network and to bring fundamental change to the ways in which merchants and buyers are able to find and interface with each other. Streamlined payments play an influential role when it comes to selecting suppliers, and when they accept credit card payments, they put themselves in a more favorable position to become a preferred supplier.
In the end, using digitally integrated payment technologies goes far beyond simply improving efficiency and reducing cost. They also create further opportunities. All parties involved in the transaction also benefit from the added value, which can be accessed through smart application of today’s flexible technology that brings suppliers and buyers closer together.
BillingTree’s B2B payment systems are highly secure, fully compliant, and extremely convenient, enabling buyers and suppliers to enjoy a streamlined online approach to invoicing and revenue collection. With years of experience in the payments industry, BillingTree is well placed to handle all of your organization’s B2B payment needs and to give your business the advantage that it needs to stay ahead in today’s highly competitive business landscape.