When it comes to your business, cash flow is extremely important. You need to make sure that you can meet the various payment obligations in a timely fashion without sacrificing your ability to fund other things. At the same time, though, you also want to make sure that you’re keeping as much money as possible by making sure that expenses are kept at a minimum and good deals are negotiated whenever possible.
A business-to-business (B2B) payment solution can help with all of these things and more, whether you have suppliers or customers outside your company. They can help streamline your b2b payment processing and make things easier for everyone involved, which will save you time and money in the long run. Here is why you should use a B2B payment solution if you fall into this category:
Streamline your processes
A B2B payment solution can simplify all of this by working with a variety of other systems and software that you already use in your company. It can integrate with everything from your accounting software to your shipping and inventory tracking system. One system that everyone on your team can access can make all the difference when it comes to streamlining processes.
Get better deals
As the old saying goes, “the squeaky wheel gets the grease.” This is especially true when dealing with suppliers. If you want something and are willing to negotiate, you will almost always be able to work out a better deal than if you just accept their initial offer. On the flip side, though, if you aren’t willing to negotiate and accept their first offer, you may be throwing money away and paying more than you should. Even if you have an established relationship with a supplier, you should always try to negotiate.
Help you manage cash flow
A B2B payment solution can help you manage your cash flow by helping you lock in supplier prices and creating payment terms that work for both you and your supplier. If a certain supplier regularly takes 60 days to get paid by you, they can’t take advantage of the fact that you need to pay them on the 15th of every month. You are now able to lock in their prices and pay them on the 15th, even though they aren’t expecting it.
Lock in supplier prices
If you are working with a supplier and negotiating better terms, you may be able to lock in their prices for a certain period. This may, in turn, allow you to negotiate better payment terms, as well. If you are buying equipment, for example, you might be able to lock in supplier prices for one year. This will give you time to pay off the initial purchase, but it also gives you a safety net in case the prices go up during that time.
Help you manage risk
When you first start, you will likely find yourself buying products and services from smaller companies that you trust and would like to support. But as your company grows, you will probably want to expand your purchases to bigger suppliers that can provide the same products at a lower price. One of the biggest advantages of working with a large supplier is that they may be willing to offer a payment term.
Fewer disputes and chargebacks
One of the biggest reasons for disputes and chargebacks is timing. If you purchase something and don’t pay the supplier on time, they could file a dispute or chargeback against you. Even if you have a good reason for why you weren’t able to pay them on time, you’ll likely lose this dispute. A B2B payment solution can help you make sure that you are on time with all payments, which will help you avoid these disputes and chargebacks.