The best outcome in any business transaction is one that makes all parties involved happy.
With B2B payments, it is often the case that what vendors need most to manage incoming payments may be a different priority from those shared by business owners or corporate buyers.
Suppliers always want to be paid yesterday. Buyers prefer to control payment terms in whatever way makes it more convenient for them.
Fortunately, there is one solution that delivers for both: ACH.
Now buyers who want more extended payment terms can still rely on the ages-old custom of writing a paper check, which they can send out when its convenient, knowing they still have a day or two to make sure it’s covered.
That may generate some cash flow issues with suppliers but ACH makes it easier to manage them. An electronic payment solution tracks when money comes in and goes out from a bank account.
While commercial cards offer the same visibility, they also require an interchange fee that industries with low profit margins would prefer to avoid.
Speed, cash visibility, and no added cost burdens – that’s why ACH may be the best option available for satisfying buyers and suppliers.