While positive cash flow is a bottom line need for all companies, payment timing that works for one company may be a non-starter for another. That’s why adding dynamic discounting to your supplier payment options is a win-win for you and your suppliers. Dynamic discounting empowers both sides of the payment equation — you and your suppliers.
Suppliers don’t always understand or appreciate the benefits of electronic payments. Some suppliers may even view electronic payments as a negative. Unless suppliers agree to be paid electronically, you will not achieve the maximum benefit from your electronic payments initiatives. So how do you convince them?
When it comes to splitting restaurant checks, financing your college student’s Friday night pizza runs or paying for your gym membership, all you need is your phone and a Venmo, PayPal or Apple/Android pay app.
When it comes to paying your suppliers? Not so much.
In this instance, consumers are way ahead of corporations because electronic payments are significantly more secure than checks and even ACH payments.
You’re ready to dump paper checks.
But your suppliers aren’t.
What started out as a marriage of convenience — they invoice, you send a check — is rapidly descending into a nightmare of security risks, high costs and inconvenience.
Before you are tempted to divorce your suppliers over their love affair with paper checks, it’s worth investing some time and energy to understand how you can set your payments relationships back on the right track.
The benefits of card payment fees aren't limited to one side of the transaction. In this video, Jon Edelstein, Finexio's head of product, tackles the benefits for both buyer and supplier in B2B payments.
Finexio's Head of Product Jon Edelstein talks through the different types of pricing charged by merchant processors, and how businesses can use this fee structure to their advantage.
In a B2B environment, there's business value in making supplier payments via virtual card. Jon Edelstein, Finexio's head of product, introduces those benefits in our first installment of Finexio's whiteboard video series.