The strength of a business relationship can begin and end in the account receivables department. The relationship stays strong and intact if invoices are sent on time and payments are processed quickly. However, if there are invoice errors or payment processing issues, the relationship between the two businesses can be affected. Payment issues can unravel deals or lead to competition, turning a once positive partnership into an adversarial encounter.
As digital payment tools become more popular, accounts receivable functions are changing and becoming more efficient. With digital tools like electronic payment transfers, virtual credit cards, and more, it can be easier than ever for accounts receivable departments to reconcile invoices and bills. Without worrisome payment issues, B2B relationships can grow because mutual trust exists that all accounts will be settled. This also can remove the adversarial component of the relationship and allow the B2B relationships to prosper.
A recent article from Pymnts.com explored this situation a little more. A CEO quoted in the article said, “B2B payments were somewhat of a staring contest, where whoever has the biggest stick makes the other party conform to the way they want to do it — which is not sustainable and causes a lot of pain and migraines for organizations.” But now, that dynamic is changing for the better with digital payment tools.
So, how will the ease of digital payment tools change the B2B relationship? According to the article, it can only improve it. The article quoted Aanchal Kochlar, head of product at Capital One Trade Credit, who said, “You can delight customers and capture more customers when underwriting is seamless, the credit process is seamless, and how money flows is seamless and with less error. There is a lot of growth potential. Similarly, Shawn Cunnigham, managing VP and head of Capital One Credit, further sums it up by saying, “Business customers are no longer accepting of clunky manual processes long associated with B2B accounts receivables.”
Digital payment tools can allow B2B relationships to foster trust and open communication. Without the worry of receiving payment, it can be easier for B2B companies to share ideas and generate leads. This can also lead to repeat business because both organizations are assured of mutual revenue and stable payment options. Research from PYMNTS intelligence found that 89% of retailers using real-time payment solutions have built stronger buyer-supplier relationships. Similarly, 76% of the businesses receiving the payments felt the same. This data shows consistent and stable payment options, like the digital tools that are becoming popular, can positively impact a B2B relationship. So now is the time to make the switch to digital payment tools!
