4 Things You Should Know About Automated Payments Solutions
Automated payments are getting a lot of attention these days because they allow buyers to pay suppliers much more easily and reliably. With automated payment solutions, buyers simply provide a file of invoices to pay and sit back as the rest is taken care of for them. Funds are securely and electronically debited from their authorized bank accounts and then suppliers receive payment in the form of virtual card, ACH, and/or electronic check.
The key benefits: buyers don't have to cut checks manually, saving them lots of time and money, and suppliers avoid the unknown of mail float.
But not all automated payments solutions are created equally. Buyers should keep in mind the following four things as they evaluate potential e-payments providers.
Uses your own check numbers
Reconciliation can be tricky and time-consuming if your vendors receive check #4567 when your general ledger says check #1234 was sent. That’s why it’s best to choose an automated payments solution (like Nexus) that uses your own check numbers and debits your bank accounts directly, not mixes up your funds, and then issues its own checks.
Doesn't have any float or hidden fees
It’s your money. So your automated payments solution shouldn’t hold on to the funds for days/weeks or charge interest - before the money is sent to your vendors. Make sure there’s no float nor hidden fees.
Provides payments status at a glance
Sending payments to your suppliers shouldn’t be a black box:
- You should be able to view your payments through every step of the payment life-cycle, from the moment the payment is issued to the moment it’s settled.
- Your suppliers should be able to easily view their payments, 24/7.
- Your property managers and other authorized users should be able to see when the payment was sent.
Handles new banking relationships with ease
Banking relationships change. And you should be able to easily add or change the bank accounts that are debited to pay your vendors – without a lot of hassle. It's best to use an automated payments solution (like Nexus) where your authorized team members can make these changes themselves.
It’s your money. It’s your vendor relationships. And it’s your banks. Your automated payments solution should help you pay your vendors efficiently, cost-effectively, and on your terms. Not muddy the waters.
With the Nexus procure-to-pay platform, Real Estate companies can expertly manage their spend with clicks and keystrokes – all while maintaining complete visibility and control. The NexusPayments module – where Nexus pays suppliers electronically on your behalf – reduces manual check-writing and gives you more control over cash. Plus, it lets your team manage payments from anywhere.