B2B Payments Guide for Suppliers
Winning new customers can be hard work; but once you have won the customer and done the work, how do you get paid and paid on time? Sounds like a funny question, however, 3% of all B2B invoices are never paid at all and 54% are paid on average 26 days late.
When you go to a cafe and buy a coffee you pay for it before you leave. Why isn’t this the same for you and your customer transactions?
How does this happen and why do businesses continue to allow this to happen?
Well, as the saying goes “if it ain’t broke don’t fix it!” Also, there really isn’t really any other good alternative to doing business on trade credit terms; other than paper and chasing customers over the phone.
Until now, automating and streamlining this manual paper based processed didn’t exist. With PencilPay, you can connect your accounting/ inventory software and configure your unique settings in under 10 minutes. Then on board your trade account customers in under 60 seconds with security and a saved payment method.
If you allow your B2B customers to buy online, now they can checkout with their available trade credit limit and not have to worry about chasing the boss for their credit card. What if they don’t have enough trade credit available to complete the order? Not a problem, if the order amount is greater than the available trade credit amount, we’ll top up the difference with the customer’s saved payment method so they won’t exceed their trade credit limit.
The customer can complete their order, the order and payment details are pushed to your inventory and ordering system. Once the order is picked, packed and shipped; an invoice is created and your customer will pay on the agreed terms. All of this is automated, managed and reconciled by PencilPay so you and your customer can get on with business.
PencilPay also works amazingly with pre-paid orders. You may have your customers’ direct debit and/or credit card details on file and process the payment for pre-paid orders manually. This is cumbersome, time consuming and also not PCI compliant; exposing you fraud risk.
With PencilPay, you can generate the sales order in your inventory system, which syncs to your accounting system and then PencilPay automatically processes the payment, sends the payment confirmation back to your accounting and inventory systems so your warehouse team can pick, pack and ship. All without lifting a finger or manually trying to process a payment.
For more information about B2B payments with PencilPay you can book a demo below.