Streamlined payments are what keep businesses alive and operating efficiently, making reduced payment errors a priority for business owners. In the U.S., there are more than $25 trillion in B2B payments annually and $120 trillion globally, and this number isn’t slowing down any time soon.
Many C-Suite-level executives consider slow payments a headache, with 70% of CFOs reporting payments delayed during the COVID-19 pandemic, according to research from PYMNTS. Digitization is rapidly changing the payments landscape, so don’t wait to capitalize on innovation that directly helps your business. Follow these tips:
Creation of the electronic exchange framework
An electronic exchange framework is a system where supporting payment information is shared between businesses electronically instead of manually. This allows businesses to give and receive more timely payments and better manage cash flow. A good electronic exchange network works similarly to signing up for an email provider like Gmail. Users sign up once and can have access points to easily receive and send data with contacts through a network.
Elimination of paper checks
Up to 25% of B2B payments are still made with paper checks, according to a PYMNTS study. This percentage varied by industry, with real estate using the most paper checks at 34%.
The use of paper checks in transactions opens the door for errors that cost your business money and client relationships. Modern-day payment automation efforts have eliminated the need for paper checks altogether and focused on online, automated payment portals. Since many employees continue to work from home, eliminating paper options further stops fatal payment errors.
No payment delays
Payment delays, although harmless in the moment, have a huge downstream impact on your business. These delays cause tension in client relationships and with your employees if you’re unable to offer them promised perks and benefits due to financial reasons.
Implementing artificial intelligence solutions is another way to avoid delayed payments by reducing human error. Half of all B2B invoices globally will be issued, processed and paid without human intervention by 2025, and AI technology will only continue to become more powerful.
If you need assistance with your payment processing strategy, be sure to reach out to me at Richmond Financial Solutions by visiting my website or calling 617-843-5700. As payment technology continues to grow and evolve, it’s important t to access if you’re paying too much now and how you can actively drive payment processing costs down. Let me do the heavy lifting while you get back to running your business. See you soon!
