Get paid faster: Modernise your B2B payments
We associate business payments with being a long and laborious process. Payment requirements such as net 60, purchase orders, and trade credit lead can lead to cashflow constraints. And cashflow gaps limit growth. Only one-third of B2B spend globally is processed electronically (compared with two-thirds of expenditure in B2C) and cheques still represent more than half of the $120 trillion of B2B payments made worldwide very year.1
But that's all about to change – because how we pay in the B2C world works for B2B too.
Modernised online B2B payment technology is here.
Typical B2B payment terms that cause delayed payments can put stress on a company's financial stability and add to operational costs. In a recent Harris Poll, 84% of finance personnel surveyed said traditional payment tools and processes are flawed. The finance department is working harder than it should because of slow payments, high return rates and poor data quality.2
The good news is there's a solution. Modernised digital B2C payment methods used for over a decade now work for B2B businesses too.
Consumer payment behaviour and preferences have changed. We don't make personal purchases with cheques or lay-by like we did decades ago. Technology has made online payments safer, faster and more convenient.
Customers and merchants worldwide prefer the new payment landscape, because they can control their spending while merchants get paid quickly. What once seemed futuristic is now the norm. And paying with a smartphone or watch is on track to be the most popular contactless way to pay in Australia, according to Commonwealth Bank.3
As buyers choose new ways to pay, credit card purchases are declining. And the time and hassle it takes to attain credit approval are often significantly greater in the B2B space. While credit cards are still common in B2B, the convenience comes with high interest rates that cut into the bottom line.
Cashflow constraints hurt businesses. Late payments and unpaid invoices reduce the working capital needed for financial health. Businesses need prompt payments to avoid cashflow constraints, but this isn't the norm in the B2B world.4
According to a study by the JPMorgan Chase Institute, “half of small businesses hold a cash buffer of less than one month.”5
Without a smooth cashflow, businesses are forced to hold cash rather than reinvesting back into the business, stagnating growth and innovation.
To improve business sustainability and growth, B2B merchants need cash upon receipt.
STACK is an All-in-One payments experience, Pay Now or Pay Later - all under the merchants brand. STACK takes the hassle out of getting paid while offering the flexibility that clients and customers demand. B2B merchants decide how many instalments they need and how much they want paid upfront. The flexibility to customise the payment schedule gives renewed control over their cashflow. Stack also offers a 'Virtual Terminal' to allow for the capability to be offered by a human operator, in an office, in a store, in a warehouse or over the phone.
It’s time for B2B to benefit from the same payment technology as B2C merchants. Get paid up to 77% faster and spend up to 81% less processing and chasing invoice payments.6
The best part is how easy it is to embed STACK without overhauling current business systems. Either through direct integration or by integrating with your existing programs, financial operations are streamlined.
Another benefit of new payment technology is the information it provides. According to the Harris Poll, 58% of senior finance personnel struggle to capture their financial snapshot with traditional payment operation systems.7
The Limepay platform securely collects data points at the transaction level and reveals useful insights and trends when analysed. Businesses learn more about customer payment preferences and understand how payment options affect order value and time to pay. These and other Limepay data points give merchants the information they need to make more strategic marketing and business decisions.
To remain competitive, both clients and merchants in the B2B space need to eliminate friction, automate processes and reduce payment delays to improve cashflow. Limepay’s payment technology is available and ready to improve your B2B payment operations.
To learn more about our B2B payment options, talk to our sales team today.
1 Digital Transactions: Why B2B is the next big market for digital payments
2 Forbes: Delayed and Flawed Payment Operations
3 Commonwealth Bank: Digital wallets set to become the most popular contactless way to pay
4 Accountants Daily: Cash flow woes still troubling 3 out of 4 businesses
5 JPMorgan Chase: Cash is King: Flows, Balances, and Buffer Days
6 Digital Transactions: Why B2B is the next big market for digital payments
7 Modern Treasury: Harris Poll 2021