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How B2B finance options are boosting cash flow across the supply chain

2 September - 3 min read

As technology develops, the innovations in B2B payments also continue to evolve. Access to alternative finance channels is giving businesses the cash flow they need to grow and operate with ease, and new B2B finance options are paving the way to help boost cash flow across the supply chain. Instead of a cycle of late payments across the economy, businesses can now enjoy aligned cash flows, which means faster payments and easier access to working capital.

In this article, we look at the different B2B financing options available and how they are transforming B2B payments and improving cash flow across the supply chain.

What’s currently happening in Australia’s B2B payments?

Late payments amongst Australian businesses are an ongoing problem. The introduction of regulations such as the Payment Times Reporting Scheme earlier this year seeks to address late payments between large and small businesses by mandating that large businesses publicly report on their payment times to small suppliers. The public nature of this legislation will likely improve payment times, but what about B2B transactions between businesses? 

Fortunately, B2B finance options have emerged in recent years to help businesses improve their cash flow and provide a boost to working capital. The four main B2B payment methods used across Australia are corporate credit cards, bulk electronic clearing systems (BECS), bank transfer and digital wallets such as PayPal. 

These methods haven’t changed for many years, but the current shift to allowing more credit card payments and third-party finance is helping businesses to strengthen their cash flow. The power in these options comes from having the ability to access things such as supply chain finance or credit payments even if a supplier doesn’t have that functionality in their business.

How B2B finance boosts cash flow for buyers and sellers

The next stage of evolution in B2B finance is tools that allow businesses to provide payment options at the point of activity that reduce their risk and boost cash flow. Similar to the way people can personalise their product and shopping experience, business customers want a range of payment options. Providing expanded payment options gives suppliers and customers more flexibility which boosts cash flow and helps businesses to grow. B2B payment innovations from companies like Spenda, make this a reality for businesses.

Some of the new B2B payment options that are enabling businesses to transform their payments and boost their cash flow, include:

  • On Demand Non-Bank Lending: Provide customers with access to third-party finance in your transactions through Spenda’s Buy Now, Pay Later feature. This gives you and your customers access to capital without the lengthy and onerous application processes of traditional finance channels. 
  • Credit card payments: Even if some of your suppliers don’t accept credit card payments, you can pay your invoices via credit card through Spenda. This option gives business customers and suppliers 30-60 extra interest-free days to pay their invoices, plus access to any credit card reward point schemes.

Not sure where to start with introducing payment options in your FMCG business?

If you’re looking to provide more payment options in your FMCG business, but you’re not sure where to start, download our white paper, Flexibility in B2B payments: How an improved customer experience generates more sales. You’ll learn how to future proof your business with digital tools and integrated payments that boost your cash flow and provide a great experience for your customers.

Click here to download the white paper.

*This article is for general information purposes only. Consult a qualified financial advisor regarding any changes to or decisions about your business’s finances.

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