Why it's a good idea to offer payment plans to your business customers
Payment flexibility has been commonplace in B2C transactions for many years, and now, emerging payment technology is making this possible for B2B trade. Whether you’re looking to get paid faster, address current debtors or provide a better customer experience, implementing an integrated payment solution that delivers more ways for customers to pay their invoices, is a great solution for any business.
This article outlines why tapping into automated accounts receivable solutions along with offering more convenient payment plans to your business customers is a good idea and smart business practice.
Why should your business provide payment plans to business customers?
Once you’ve worked with certain customers for a while, you know which accounts are reliable payers and others that perpetually pay late. Late payments may occur for several reasons, including administrative errors, cash flow problems, manual processes where invoices get lost in email inboxes or the post, or it can be simply put down to limited payment options.
Offering payment plans is a good way to encourage faster payment and demonstrates care for customers who can’t pay a full invoice amount on time, especially if a customer’s business is facing financial challenges. And by offering solutions with several payment methods, your customers can find an option that works best for them. This reduces the likelihood of late payments and strengthens your customer relationships.
Utilising the power of automated technology to provide flexible B2B payment plans
Finance teams spend around 65 per cent of their time on manual processes. Automation can reduce this time spent by 30 per cent, allowing your team to work a lot smarter. Plus, when you factor in that an estimated 40 per cent of all finance functions can be fully automated, this means your business can enjoy major time savings that come from smarter debtor management.
While your business can offer payment plans to its customers without automated systems and processes, this is more difficult to track, inefficient and doesn’t address late payments caused by tight cash flow in a customer’s business. After all, when one business pays another business late, it usually results in a late payment flow-on effect across the supply chain.
Fortunately, technology such as integrated payment platforms and automated accounts receivable tools allow you to offer payment plans without putting a dent in your business’s cash flow. With this technology, you can offer customers access to more payment options, including bank transfers, credit card payments and B2B buy now, pay later (BNPL). And by offering a BNPL facility, you effectively remove the risk of trading with insolvent businesses and let a third-party, like Spenda, assume the financial risk. You get paid on time, while we manage the payments with your customers, giving you more certainty over your cash inflows.
Happy customers are loyal customers
Customers love flexibility when it comes to paying for their goods, and it’s no different for businesses. By giving your business customers more flexible ways to pay their invoices, you’ll likely see larger order volumes, and, more frequently. On top of this, offering payment plans provides a better purchase experience because it shows that you understand that sometimes managing a business’s finances can be tough, but you have the flexibility and technology to offer options that won’t be an administrative burden for either party. And with this understanding, your business will be able to provide a great customer experience, which can result in more loyal, long-term customers. You’ll also have a higher chance of word-of-mouth referrals.
Grow and get paid faster with Spenda
Spenda has the tools that can enable your business to provide payment plans and flexibility to your business customers. Whether your customers prefer to pay via bank transfers, credit card payments or a Buy Now, Pay Later arrangement, Spenda delivers all of these options in one intuitive and connected digital platform. It allows your customers to have more flexibility over their accounts payable processes, while you get paid faster. You’ll also save time and resources that you would have otherwise used up chasing late payments.