Supplier Payments; What You Don’t Know that Might Cost You Tons of Money
Payments across borders entail a lot more than just making the payment, particularly when dealing with suppliers in Europe and the US. It's common to think about tax compliance, currency exchange rates, banking requirements, speed, and other factors.
How to send and receive payments across borders is one of the biggest challenges facing businesses in Africa. As a business owner, your (cross-border) payment infrastructure plays a key role in determining how much your business is growing, particularly in terms of revenue. As a customer, the payment method you choose has a significant impact on how smoothly the transaction goes.
Let’s face the facts, payments across borders, especially when you’re dealing with suppliers in Europe and the US, involves much more than making the payment.
When it comes to purchasing goods from foreign suppliers, it’s usual to consider tax compliance, currency exchange rates, banking requirements, fastness, and many more.
When your supplier payments platform for sending cross-border payments doesn’t consider these factors, you’ll have to manually attend to each supplier’s situation, lose the supplier to another buyer or have legal issues.
Losing the supplier’s trust is always the case because businesses will run from you if your international business payments infrastructure is complicated and untrustworthy, or when you’re telling lots of stories.
Simply put, your business will lose tons of money, suppliers, and potential deals if you don’t have a reliable cross-border payment gateway.
Supplier Payments; Insightful Information You Should Know Before Choosing a Cross Border Payments Platform.
This article discusses what you need to know about vendor payments to help you save and grow your business.
What is Supplier Payments?
A supplier payment, also called a vendor payment, is the last step in the purchase to pay cycle when an enterprise pays a vendor for purchased goods and/or services. Supplier payments can be simple when both vendor and client are in the same country but become complex when it involves making cross-border payments.
When an overseas company orders for goods or services, a purchase order is created. Once the goods or services are delivered, the company will receive an invoice from the supplier and will then pay the invoice in the form of supplier payment.
Usually, supplier payments are done automatically through a variety of online platforms and digital B2B payment solutions like FliqPay. These payment technologies and getaways are designed to help streamline and secure the process of making supplier payments.
However, the challenge comes in when you choose the wrong cross border payments gateway, because the wrong payment portal can have worse implications for your business.
Because of the critical nature of the supplier payment process, it’s necessary that you do your research before entering a strategic partnership with a payment gateway provider. This is to ensure that you get an accounts payable process that scales with global growth and prevents any international supply chain downtime you may have.
Factors to Consider when choosing an International Payment Gateway for your Supplier Payment Process
To ensure your supplier payments process grows alongside your global business operations expansion, you must look out for the following when choosing a cross border payment gateway.
A Single Platform with Robust Invoice Management and Supplier Payments Structure.
Accounts payable most times treat invoice management separately from the supplier payment process with the invoice approval coming first before the remittance. The thoroughness of the invoice validity review during the invoice approval process often leads to late supplier payments.
This approval process and the supplier invoice management system can be sped up through automated data extraction. However, the remittance needs to align with the company’s cash flow; that is, synchronizing the payments with fund availability.
Ensure you go for a gateway that handles all workflows simultaneously. This way, the invoice management, supplier payment process, and invoice approvals are done faster and easier.
An International Payment Gateway with a One-Size-Fits-All Supplier Onboarding Process
As a business owner, it’s usual for you to receive supplies from businesses in different countries and continents. With each country comes a different currency and different regulations. This often leads to extra work that you may not have factored in while designing the onboarding process. From currency exchange down to tax regulations and added charges, these can be frustrating.
When you work with a product that is already designed to overcome these frustrating challenges, you save yourself and your suppliers, lots of stress and tons of money.
An automated payment portal helps every party to have a seamless experience.
A Highly Automated Supplier Payments System
The Accounts Payable workflow is filled with situations that require hands-on decision making.
On a local level, making these decisions manually might work out. However, if you are looking to successfully expand your business globally, you must find a way to transform manually executed steps into automated tasks.
This is where an automated system comes in.
FliqPay – Supplier Payments made easy
FliqPay enables businesses to send secure and seamless B2B cross-border payments to their suppliers in multiple currencies across various countries. This is enabled by Fliqpay with its Payouts service.
Businesses can make international B2B payments to banks in currencies such as NGN, USD, EUR, CNY, GBP, etc, mobile money accounts and crypto addresses at the best rates without hidden fees.
The good thing about this product is that suppliers can make payments in their local currencies and major cryptocurrencies. Getting access to this Payout service ensures that borders will no longer be a restriction on your business expansion, as you would be able to pay suppliers in Asia, the EU, Africa, the US, China, etc.
Conclusion on Choosing a Cross-Border Payment Solution for your Supplier Payments
Conclusively, do not let the challenges of making payments online in an international supply chain intimidate you from expanding your business beyond the shores of your country.
Adopt a platform that makes the process easy and seamless for both you and your suppliers, and you will experience the business growth you hope for.