Using a business prepaid card,it is possible you can reduce the number of challenges you face while making B2B payments. Before we see how that is possible; let’s see why B2B payment process is a challenging job.
Basically, B2B focuses on a deal between two business owners. You pay or get paid, but if you have failed to streamline the payment process then you’ll lose both your time and money.
Common challenges faced in B2B Payment system
1. Delay in Making Payments
Now you cannot exactly point one reason why there has been a delay in making payments. Maybe it’s a habit of your client or his accounting team is not productive enough. Or if you are not convinced then maybe there was some technical glitch, but in the end, you are paid late.
2. Payment Methods
The payment method that is being used for making payments definitely counts. If are being paid through money orders or checks, then it definitely takes ages before you can have your money on the table.
Supposeboth the parties are using credit cards for making payments and if you are using Mastercard and your client is using Discover, then you have both indulged yourselves in a waiting game.
3. Security Compromise
Cash can be stolen; checks can be misused;then can you completely trust the online payment system?
As per the reports from RSA security, the US experienced 52% of total attack volumeof online fraud.
So basically, if your client is across the sea, there’ll be always the chances of losing money to some fraudsters.
The best way to combat such issues is by using a business prepaid card.
Do you know?
As per the reports from Deloitte,
- In 2016 alone, there was more than $18.5 trillion worth of B2B payments accounted in the USA.
- Also, the numbers are expected to reach more than $23 million by 2020.
In spite of this, we can see that over 50% of U.S. companies still rely on the paper checks. It’s time more companies adapt to this new payment technique. They are a lot of benefits in doing that.
How willBusiness Prepaid Cards Improve & Simplifythe B2B Payment Process?
1. Better Alternative to Cash & Paper Checks
Before you use a business prepaid card, you’ve to make sure that even your partner ismaking use of the same payment model. That means even he should have a business prepaid card.
Compared to checks and cash, prepaid cards make B2B payments much easier and convenient. Unlike regular banking process, you need not wait in long lines to get your cash checked.
Just load money to the prepaid card anytime, anywhere, and enjoy the ease of payments and transactions.
2. Increase Business Efficiency
- You are not wasting your time.
- You are not waiting for your money.
- You are paid on time.
- You are not wasting money on processing fees.
Do you need more reasons to say that you are not running an efficient business?
Using a business prepaid card for B2B payments, you are saving yourself a lot of things – money, time, work, and giving yourself convenience.
When you focus your energy on running your business rather than doing some menial job, you’ll automatically improve the efficiency of operations. Saving few extra dollars, you’ll improve the value of your bottom line.
3. Improve Relationship
Money is everything and in thebusiness world, it can make or break relationships.
You always pay your vendor/supplier late. It’s unlikely he would continue doing business with you.
Be timely in making payments, because it may help you strike better deals with them in the future. Suppose every time you are paying within the deadline and someday you need an extension for the payment date, and then maybe your vendor will comply with that?
As said earlier, there would be a lot of reasons behind a delayed payment. However, you can completely avoid that by making use of prepaid cards for the same.
Switch to business prepaid card today and experience convenient and safe B2B payment process. Prepaid cards are the best and cost-efficient financial tools.You don’t have to deal with high-transaction fees and can track every dollar in real-time.