Many Canadian businesses are trying to find digital solutions to improve their productivity and become more competitive. This shift includes new ways to accept payments for goods and services and how to pay for anything from manufacturing supplies, raw materials or marketing costs.
Like consumers, businesses are pivoting away from traditional payment methods such as cash, cheque and wire transfer to embrace payment solutions that fit their needs.
Could electronic payment methods like commercial payment cards and ePayables be the right fit for your business too?
Receive payments faster
Business happens in real time, but when payments are made using old-fashioned methods, funds can take up to 60 days to go through. Companies no longer willing to wait for payment are turning to digital processes that speed up these timelines and improve cash flow. Depending on payment terms, companies accepting commercial payment cards and ePayables can access approved funds in days versus months.
Efficiency isn’t just about the speed of payment, it’s a process improvement for the finance team that results in increased accuracy. Finance teams can spend a significant amount of time on manual processes when it comes to issuing or accepting cheques. This can include setting up payables and payments, conducting background checks for new customers, printing cheques, coordinating the mailing of cheques, recording remittance data, and performing cheque reconciliation. Any missed step or error in these procedures can result in inaccuracies that can be both costly and time-consuming.
Paying with or accepting a commercial payment card or ePayable means that reconciliation improves while processes are streamlined or automated altogether. This can result in a potential reduction of soft costs and the ability to free up employee time to focus on more profitable tasks.
Every cheque carries a risk of non-payment or insufficient funds. Extending credit to potentially risky accounts means the possibility of a delay in payment or even the risk of having to deal with collections due to fraud. With commercial payment cards and ePayables, suppliers can be confident knowing that the payment is made as soon as the transaction goes through.
Gain a competitive edge
Perhaps the most significant reason that businesses are shifting away from traditional payment methods is the opportunities these new methods offer by way of boosting sales. With customers demanding more modern payment methods, it makes good business sense to listen and convert. From a practical perspective, electronic payments offer the option of higher credit limits which could improve a buyer’s purchasing amount or frequency. The availability of these payment options also improves the chances of being included in RFP selection processes, as many require the use of a commercial card.
With misconceptions about pricing, complexity, and lack of demand swirling around payment solutions like commercial payment cards and ePayables, companies are losing out on significant benefits. When embracing new payment options can positively move the needle on efficiencies, accuracy, protection and sales, this is one transformation businesses can’t do without.
The information in this article is provided solely for informational purposes and is not intended to be legal, business or other professional advice or an endorsement of any of the websites or services listed.