Are Online B2B Payments Right for My Business?
When it comes to ditching in-house checks – in favor of automated B2B payments - you may have lots of questions. You may also be wondering if online B2B payments are right for your multifamily, commercial, or other Real Estate business.
You may be more ready to make the switch than you know.
Online B2B payments save you quantifiable time and money
Online B2B payments are not just an electronic alternative to manual check payments. They are a way to reduce the time and money spent on paying vendors. Based on Nexus data, customers using automated payments (NexusPayments) shave 50% off their time spent managing payments. They also shave about 40% off the costs as well. And they get far more visibility. So in-house checks and electronic payments are by no means an even swap.
Plus, if any of the following apply to your business, there could be other e-payment benefits in store as well:
Your business has a lot of monthly payments and/or changing suppliers
Your business values supplier relationships and wants to enhance them
Your business has a distributed/remote workforce
Your business has strict reporting/auditing requirements
Who needs online B2B payments?
1. Businesses with lots of monthly payments and/or changing suppliers
If you have payment volume creeping up – and/or an ever-expanding list of suppliers – you’ve probably noticed it’s taking even longer to get checks out the door. Automated B2B payments can offer you a way to manage this growth sustainably. And do it without dedicating more man hours to the task.
Payment approvals are taken care of online without needing to chase around different reviewers. You simply click a few buttons and send approved payment transactions to your automated payments vendor. From there, the rest is taken care of on your behalf. This means you can make thousands of payments just as easily as a few.
2. Businesses that value supplier relationships and want to enhance them
In Real Estate, it’s key to maintain tip-top relationships with HVAC, snow removal, and other vendors. After all, you want them to swing by quickly when your AC breaks during a heat wave, or your parking garage gets blocked by snow. And one of the best ways to keep your company in your suppliers’ good graces is to pay them on time. With checks, once they’re in the mail, neither you nor your suppliers have any visibility into when or even if the payment will arrive.
Online B2B payments, on the other hand, reach their designated recipients much more quickly. That's because everything is digital and there’s no snail mail lag-time. Plus, with Nexus, suppliers can log into a self-service portal to see the who, what, when, where, why, and how for every payment. No more guessing.
3. Businesses with a distributed/remote workforce
These days, Real Estate companies have all sorts of employee schedules and setups. Some are in the office full-time. Some require employees to come in only on certain days. And still others continue to work 100% remotely as we all deal with the pandemic. Lots of things are in flux too, so the configuration today may not be the same as it is tomorrow.
The Real Estate companies who have automated their B2B payments can handle this unpredictability with ease. They don’t worry about getting the right employee into the office on the right day to print off checks. Or scramble to figure out which stakeholders need to come in on subsequent days to sign checks. They can handle every step of the payment process virtually – from wherever. And do it whenever is convenient, too.
4. Businesses with strict reporting and auditing requirements
When you issue your vendor payments electronically, audits and monthly reporting requirements won’t cause you to break out in a sweat. That’s because every detail is tracked and stored online. You will always be able to see who was paid, when they were paid, who authorized the payment, what invoice(s) it covered, along with myriad other details. All the relevant information will be accessible in one place too. So, there's no more searching through filing cabinets or stacks of paper to find what you need.
Ready for online B2B payments – what’s next?
Even if online B2B payments are a perfect solution for your business, you may wonder about the effort and/or expense involved with ditching paper checks. The answers vary, sure. But the right payments provider will:
- Do the legwork to convert suppliers from check to electronic payments for you. They may also offer technical support to your suppliers. So, if suppliers have payments questions or need help using the online self-service portal, they'll have someone to call.
- Provide payments software that’s intuitive and user-friendly, so your AP team can easily adopt this new way to pay suppliers.
- Help you maximize online B2B payment rebates (often earned through virtual card payments) so you can actually offset any startup/licensing fees.
You’ll gain more control with online B2B payments
While it may seem counterintuitive, you’ll actually gain more control when automating payments, versus keeping them in-house. That’s because you’ll have more visibility into what’s paid, when it was paid, and who paid it. All of those details should be available online at a glance. No running down the hall to ask questions or going through piles of paper.
Moreover, with many B2B payments companies, you’ll be able to decide who gets paid through the automated payments vendor and who doesn’t (you may have a few vendors you’d like to still pay in-house).
So, if you need more control, and any of the above apply, you may want to start the journey towards electronic payments sooner rather than later.