2 Payment Types to Better Connect Your Automation with Your Suppliers
Supplier enablement has always been a great focus for AP departments. So what happens whey you become automated and try to transition your suppliers? There are two types of payment strategies to get suppliers on that could help your business. Here are two campaigns to better enable your suppliers.
1: Supplier Enablement Card Campaign
Start by thinking strategically about moving as many suppliers as possible to card payments. Supplier enablement is often the most difficult part of all. When transitioning to E-invoicing, there can be resistance from suppliers. Nevertheless, in order to get maximum leverage out of every payment made, you need to show them how this will benefit them.
Common concerns to expect from suppliers when moving from paper are merchant fees (if used with a credit card), unfamiliarity with your system, and just general lack of desire to change. These concerns can be over ridden with benefits of more security and greater convenience after the learning curve. In addition, suppliers are guaranteed funds 60% faster.
2:Supplier Enablement ACH Campaign
Suppliers who are ACH enabled are discovering the advantages ACH has with their customers. You’ll find that it’s possible to get a much higher e-payment percentage if you leverage suppliers that are already electronically enabled. In fact, that percentage can be as high as 80 percent more when using card and/or ACH payments. These days, same-day ACHes are available. You may still have to use card payments for a few of your suppliers, but 80 percent alone can make a large difference in your system. Real-time payments will be the norm and you’ll be ready for that, too.
Once you have most of your company’s payments automated, it could be time that you start taking your strategy to a higher level. One example of the next level is using dynamic discounting. This included some of the new and innovative automated trade finance solutions. In fact, you’ll probably find that even financing invoices could be making a major comeback.
While it may seem like a daunting task to get suppliers onboard with your automation process, it is doable. iPayables dedicates an entire team to help with your processes and your vendors process. It makes for a seamless experience.