Business-to-business (B2B) payment services are not a new option. They’ve actually been around for some time, providing companies with a fast and secure means of accepting and processing transactions with each other. As B2B payment services move online, however, businesses have more options and alternatives than ever to choose from.
Should You Consider B2B Payment Services?
If you’re still on the fence as to whether this option is right for you, consider the many different business types that regularly use this option: startups, small businesses, retailers, wholesalers, and more. B2B payments also differ from business-to-customer payments (B2C) in that they involve more steps to mitigate potential issues that can arise, so having the right provider with the right features can help your company boost efficiency. In addition, there are five main ways to send and receive B2B payments: checks, wire transfers, electronic bank transfers, credit cards and a payment gateway.
Biggest Benefits of Utilizing B2B Payments
If this solution sounds similar to what you’re looking for, the following benefits will help you better understand how B2B payments can help your company grow.
- Improve Cash Flow. One of the most daunting tasks a business owner – at any point in their journey – faces is cash flow. Of the many business ventures that launch each year, most of them fail within five years, citing cash flow issues as the reason behind closing their doors. Automating more of your B2B payments can help you easily identify patterns in incoming and outgoing cash flow. For example, if you have a few merchants that regularly pay you late, your B2B payment solutions can help you pinpoint where cash isn’t coming in and make it easier for those customers to pay you. In turn, you get money in your business bank account sooner and improve cash flow.
- Simplify Bookkeeping. Because B2B payment solutions help you automate so much of the process, it’s also a good way to simplify tasks like accounts receivable and accounts payable. It’s really easy to misplace cash and checks. B2B payment solutions, on the other hand, allow you to eliminate recording errors and store data via the software tool or app.
- Save Valuable Resources. Incorporating B2B payment solutions help you save time and resources for your business, your team, yourself and your customers. You not only reduce processing costs, but also cut down on the time it takes to complete processing tasks. Freeing up you and your team to spend more time on core products and services and growth efforts.
- Increase Security. Mail theft has been on the rise recently. Just another big reason to switch over the B2B payment solutions and automate processes. Of course, digital solutions can still fall victim to hackers and security breaches, but with the right provider, the risks are greatly reduced and you have a support team available 24/7.
Where to Secure B2B Payment Services
Your next big question is likely, where do I find the right B2B payment services for my business? It’s true that not all B2B payment solutions are created equal, and neither are the providers that offer them. It’s important to compare your options and research the features and services of the industry-leading providers today (e.g. pinwheel). The right provider can help you get paid faster, save time and resources and improve cash flow.
Content crafter Alex Wilmont has been active in the payments industry for over 15 years. He lives simply, gives generously and loves his 2 dogs. His mission is to enhance and innovate the fintech industry for years to come.