Every day, on your average company, a large number of purchases are made in order to keep business running. Sometimes purchases are made with a card, sometimes with billing by invoice. With virtual cards you can become more efficient – while saving money.
Whether you buy a dozen whiteboard pens or 20 tons of aluminum, there are savings to be made in the process. But just like the character of your products, the means of transactions can differ. In some cases you have tedious negotiations that go on for weeks or even months. In other cases it is attention to details and saving pennies that make the difference for corporate savings.
Payment solutions also differ. Big strategic purchases that are made but a few times a year, can in many cases be taken care of with traditional trade finance solutions. When it comes to your smaller everyday purchases, they can often be made with a debit card or a corporate card.
This is not necessary a problem in the long run, but having some purchases made with direct payment with a corporate card (like coffee for the office) while others (like spare parts for industrial tools) are billed by invoice – is a challenge.
For the supplier, it is a question of cash flow, staying in control of payment status and so on. Worst case scenario, the supplier has to wait for more than 3 or 4 months before receiving payment.
And from here on it gets worse. For the buyer it means a risk with double payments, fraud and late payments, with the penalty fees they entail. And while this affects the relationship to the supplier, it also affects the negotiation on discounts.
As luck has it, for both suppliers and buyers, there are new solutions based on virtual accounts. They enable quick payments for purchases that normally are not taken care of with credit cards.
Direct payments of large purchases will automatically enhance the payment process – as well as the relationship – between buyer and seller. And at the same time eliminate the need of phone calls and emails to check payment status. And it leads to reduced costs for handling the transaction, while reducing the risk of fraud or missed payments.
So happy faces and quicker and more accurate payments – regardless if your thing is office supplies – or the company’s heavy fleet of machinery.