Get started

Suppliers: Here’s how to get your retail business customers to pay you quicker

22 October - 2 min read

The emergence of options such as buy now, pay later (BNPL) services was first introduced to business to consumer (B2C) transactions, giving customers the ability to access products and services they need today while paying at a later date or over a series of instalments.

Today, new fintech innovations are making it possible for businesses to provide payment options and flexibility to their business customers as well. In this article, we outline how your business can strengthen its cash flow and grow by providing more payment options to retail business customers.

Transform your B2B transactions with better payment technology

Selling your products wholesale to retailers enables you to enjoy larger order volumes, but there are downsides too — late payments and inefficient payments processes. As recently as 2019, over 70 percent of the value of B2B sales in Australia occurred through trade credit. While trade credit may be convenient for your customers as they don’t need to pay anything upfront, it can be crippling for your business’s cash flow when payments are late.

There are two key changes you can make in your business to get paid on time while continuing to provide your customers with payment flexibility:

  1. Introduce an integrated payment system; and
  2. Provide flexible payment options

Making these changes will:

  • Reduce the likelihood of late payments
  • Create a positive customer experience
  • Drive business growth
  • Address current debtors
  • Boost cash flow
Free download: The ultimate guide to help you strengthen cash flow

Flexible payments will improve your cash flow management

With an integrated payment system, your business will be able to offer customers flexibility in how and when they pay while establishing the systems and processes to ensure your business gets paid faster. And with the functionality to record transactions ledger-to-ledger and integrate with your existing accounting and ERP systems, your business’s finances will be automatically updated every time a sale, refund or exchange is made.

Drive business growth and provide a positive customer experience

Beyond the efficiencies and more detailed view of cash flow that an integrated payment system provides, it also gives your customers more flexibility in how and when they pay their invoices.

For example, with an integrated payment system like Spenda, your business can provide BNPL options on B2B transactions. This gives your customers extra time to pay their invoices, and if they pay via credit card, it adds an additional 30 to 60 days to their payment terms (depending on the interest-free period on the credit card). It’s a win-win — your business gets paid immediately and your customer can pay for their purchase over time. And, it helps your business ensure it has adequate cash flow to cover regular overheads such as rent, salary and wages, utilities bills and consumables such as cleaning products and stationery; and plan for bigger investments.

Importantly, making changes that help you to better manage cash flow and provide a positive customer experience doesn’t have to be a lengthy and complicated process. Starting with the right technology and watching your business transform from there is the powerful potential available to businesses that rethink how they collaborate and accept payments with other businesses.

If you’re looking to introduce smarter tools and provide more payment options in your business, but you’re not sure where to start, download our free guide on how to boost cash flow for your business. 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.

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

Related Articles

Understanding the dynamic link between accounts receivable and accounts payable

Accounts Payable (AP) and Accounts Receivable (AR) functions are distinct but interconnected components of the financial process.

Embedded finance: A game changer for B2B trade

Optimising and digitising payment processes and improving customer experiences are vital for businesses wanting to stay ahead of the curve.

Five ways to optimise your payment collections process

Efficient management of accounts receivable is crucial for businesses of all sizes. It serves as the lifeblood of healthy cash flow, enabling businesses to better allocate resources, invest in strategic initiatives, and grow faster.  

Apply for payments

Please fill out the form and one of our team members will be in touch to discuss your requirements.