With B2B, there’s more to payments than paying or getting paid. That’s why we created this toolkit – to help you better understand the value of commercial cards and the B2B ecosystem.
Learn more about the buyer and supplier relationship, and how B2B transactions work.
Discover why commercial cards are beneficial to both buyers and suppliers.
Extend your payment window
With cheques or EFTs, you can’t pay your suppliers unless you’ve got sufficient funds in the bank. There’s also a tendency to put off the payment, holding your funds while potentially straining vendor relations.
With epayables and commercial credit cards, you can pay much sooner because the money isn’t coming from you, it’s coming from the bank. You only need to pay once you receive your card statement. This increases your payment window by 20 days on average. This extra time increases your working capital and buying power, while potentially improving your supplier relations.
Efficiencies that drive the bottom line
Making payments is more than cutting cheques. There are paper and mailing costs, running after signatures, gathering remittance data and other inefficiencies.
With Moneris B2B Pay, inefficiencies are reduced through seamless automation and detailed remittance data with every transaction. It's efficiency through automation.
Payments that earn points
When was the last time your business earned something off a B2B payment?
Similar to consumer credit cards, commercial payment cards offer buyer incentives such as points, rewards and rebates. Unlike other payment methods, you can receive something in return every time you pay.
It’s all in the details
It’s estimated 15%* of B2B payments require a follow-up by the supplier because the payment lacks remittance detail. With cheques, it’s just a stub. And with EFT, the money and the reconciliation data aren’t together.
With Moneris B2B Pay, each transaction includes a detailed remittance report. It means better reconciliation for suppliers, and a stronger working relationship.
*Source: Store Financial
Enabling Global Payments
Working with a foreign supplier can cause additional hurdles to making a payment. There’s the mailing costs, currency exchange rates and making sure you’re getting what you’re paying for.
With Moneris B2B Pay, you can pay your Canadian suppliers, so long as it’s in Canadian or U.S. currency, without spending time or money worrying about sending money via wire or the mail.
Increase your cash flow
Why can it take so long to get paid? Within B2B, this long wait has just been accepted as the cost of business. And the longer you wait, the higher the cost to your business.
By accepting commercial cards, you’re paid much faster – with money deposited straight into your account as soon as the next business day. Faster pay equals increased working capital to invest in your business.
Efficient and automated payment collection
Receiving payments is a laborious, inefficient process – from compiling remittance data to collection and tracking troubles.
Card acceptance speeds all this up. For example, Moneris B2B Pay includes straight-through-processing, or STP, which puts the money straight into the supplier’s account with zero effort on the supplier side, complete with detailed remittance data. So you spend less time collecting and more time earning.
Fast and secure payments
When you accept cheques, you accept risk. Bad debt, fraud, unpaid balances and other insecurities can harm your business. And the longer you wait for payment, the higher the risk of not getting paid.
Unlike cheques or electronic fund transfers, the bank is the lender when you accept cards or epayables, not the supplier, so there’s much less concern about certainty of payment.
It’s estimated 15%* of B2B payments require a follow-up because the payment lacks remittance detail. With cheques, it’s just a stub. And with EFT, the money and the reconciliation data aren’t together.
With epayables solutions such as Moneris B2B Pay, every transaction includes detailed remittance data. This means quicker payment reconciliation, freeing up your finance department to spend more time analyzing and forecasting sales, and less time searching for information.
Convenient options make it easy to buy
In the consumer world, customers expect to be able to pay for things in whichever way they prefer. The same is happening within B2B, with some buyers making card acceptance part of the RFQ process.
By accepting cards or epayables, you’re potentially increasing your customer base. And because it’s payment through credit, you’re increasing your buyers’ purchasing power, which may mean increased volume and spending capacity.
With buyers from abroad, getting paid can be challenging. There’s exchange rates to deal with, and some banks don’t allow electronic payments from foreign accounts. So you’ve got to wait for the cheque.
With cards and epayables, you can receive payment from any country, so long as it’s in Canadian or U.S. funds.
Know your B2B payment terminology
Where are B2B payments heading? What’s trending?Read our white papers and other articles related to B2B.