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What to Look For in a B2B Business Payment Tool?


Financial Automation is what your business needs.

Financial automation is what you get with B2B business payment tools.

But how to choose the best one?

Instead of choosing the best one, we’d suggest you find the right one. 

Most of the B2B payment tools offer the same features. The best one for you would be the one with the best FIT.

In general, there are a couple of things you need to look out for. In this guest post, we break down the top factors to look out for, before choosing ‘the one’.

What Is B2B Payment?

B2B payments are payments made by businesses to vendors and suppliers for goods and services.

From business payments to a simple office supplier to the biggest equipment supplier come under the same category – It creates a path for B2B payment transactions.

Some of the following statistics will prove why you need to consider B2B payments automation.

  • Manufacturing Industry involves up to 28% or $3.53 trillion
  • Business consulting services involve  21% of B2B payments. $2.60 trillion (21.2 per cent)
  • Mining – $685 billion (5.6 per cent)
  • Finance and leasing – $2.19 trillion (17.8 per cent)
  • Wholesale trade – $643 billion (5.2 per cent)

#1 Payment Diversification

If pricing is compared, digital coins or cheques may be sent. The nature of your business may be such that only a certain mode of payment is preferred to be used. So choose an application in the B2B payment tool that provides you with diverse choices.

#2 Security Is Key

Fraudulent transactions are only too common in this digital era. Especially in the world of B2B commerce, breaches in transactions would make businesses run like a headless chicken even with a single loophole.

Data Security needs to be a top priority factor in the B2B software you plan to go with. Remember, there is no compromising when it comes to safety.

#3 It’s All About Transparency

Controlling cash flow should be a high-priority concept and transactions will lead to errors and mismatches. The lack of digital visibility between vendors and business partners needs to be bridged by the tool you opt for.

#4 Time Is Precious

Time-saving apps need to be considered by the app you choose on a first-priority basis. All it takes is putting effort into choosing the right application.

On average settling down payments may take about 10 to 30 business days, including invoice generation time. So choose an app that works well to help you save time.

Payout cycles may be different but the time for transacting should be drastically cut with the use of the B2B payment tool you choose.

#5 Prioritise Economical Options

Transacting costs, especially forex transactions can be unbearably high. Traditional banks offer rates, almost creating monotony in a certain way.

If corporate credit cards from fintech firms are used to take care of expenses, then fee and maintenance charges is one of the drastically reduced bonus features you earn.

In case you choose to pay with bills, you will have to pay a price with time managing cash inflows and outflows.

#6 Should Improve Cash Flow

The biggest cause of cash flow management is inefficiency in automating B2B payments.

Business administrators can easily see set patterns via reports generated on software tools.

Any unwanted results or financial management failures can be minimised with efficient B2B payment automation.

As a bonus, this would also come with quick financial solutions without risks.

Accounts payable technologies are here to stay. You might as well make use of it the right way with the right understanding.

#7 Should Help You Save Resources

Adopt a B2B payment solution to eliminate repetitive work. This type of improvement helps employees focus on core decision-making activities rather than daily operational activities.

Digitally backed systems with improved security should be considered on a top priority basis before making any decision.

Most Popular Types of B2B Payments?

1. Credit Cards

One of the primary factors in B2B payment usage is credit cards. The most convenient way to allow transactions to occur is through corporate credit cards.

Such payments can be tracked by a single dashboard entirely through electronic mode.

Although most credit cards are charged with interest rates, it provides businesses to meet short-term expenses easily without utilising existing funds.

The best way to go about using such a card is by using it as a debit card.

Moreover, these are entirely virtual cards that can be discarded or made null or void after each payment.

These virtual cards are attached to a regular credit card. Hence all transactions will appear in the form of a single bank account statement in each billing cycle.

2. ACH Payments (Automated Clearing House)

ACH is a type of B2B digital payment that is quite efficient in comparison to receipt methods.

Routing numbers and bank accounts are used via which transactions are made.

The entire process moves electronically from one entity to another smoothly.

Due to their simplicity ACH payments work great with B2B payments.

ACH is one of the most cost-effective ways to go about transacting any B2B payments.

Over any paper checks, most organisations prefer this over the others and do not even charge any fees.

Month-end statements can be easily tracked with ACH payments. This can also be used to integrate into a company’s enterprise resource planning system.

3. Wire Transfers

Wire transfers are purely a digital form of payment to facilitate B2B transactions.

Companies use wire transfers for digital transactions for real-time payments.

Especially international wire transfers to make global payments. Immediately post the recipient’s bank account receives the money, it will be available for use. In contrast to ACH, the batch system is not used for wire transfers.

Any company looking for quick transfer options will have the best timing and terms. Only a few wire transfers have a daily cut-off time.

Cash and digital-type wire transfers are the two available. Digital wire transfers are those sent electronically from one bank to another.

All in all B2B payment tools need to be picked with internal financial problems in mind. Only then will external tools be able to provide viable solutions.

Ramitha Ramesh is the editor at Karbon Business, working as an SEO content marketing strategist for Karbon, with clients from the US, UK and India. You can find her blogs anywhere in the fast-driven sphere of finance, business and banking. She is also an expert in vendor management processes that makes business payments hassle-free. Finding nirvana in food, fun and travel, she is on a mission to save the world from infodemic emanating from the digital world, through her blogs.

B2B Payment Methods Emerging Trends

Infographic created by CardConnect, an ISO credit card processing company

I am a coffee lover, marketer, tech geek, movie enthusiast, and blogger. Totally in love with animals, swimming, music, books, gadgets, and writing about technology. Email: Website: Facebook: Linkedin: Twitter:


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