Why you should offer extended payment terms to your business customers


Payment flexibility has been commonplace in B2C transactions for many years, and now emerging payment technology is making it possible for B2B commerce. Whether you’re looking to get paid faster, address your current debtors, or provide a better customer experience, implementing an integrated payments solution that provides more ways for customers to pay their bills is a great solution for any business.

This article explains why leveraging automated accounts receivable solutions that offer flexible payment methods, including payment plans, is a smart move for your business.

Why should your business offer flexibility to business customers?

Once you’ve worked with certain clients for a while, you know which companies are reliable payers and which ones tend to pay late. Late payments can happen for a number of reasons, including administrative errors, cash flow issues, manual processes where invoices get lost in email inboxes or in the mail, or it can simply be attributed to limited payment options.

Offering flexible payment options is a good way to encourage faster payments and to be considerate of customers who cannot pay the full invoice amount on time, especially if the business of a client is facing financial difficulties.

Use the power of automated technology to provide flexible B2B payment plans

On average, finance teams spend around 65% of their time on manual processes. Automation can reduce this by 30%, allowing teams to work smarter. Plus, when you factor in the fact that around 40% of all finance functions can be fully automated, it means your business can enjoy significant time savings through smarter accounts receivable management.

While your business may offer payment plans to customers without automated systems and processes, this makes things much harder to track and does not solve payment delays caused by tight cash flow in a company’s business. customer. Late payments tend to have a ripple effect, because when one company pays another company late, it usually impacts the entire supply chain.

Fortunately, technologies such as integrated payment platforms and automated accounts receivable tools allow you to offer payment plans without hurting your business’ cash flow. With this technology, you can offer your customers access to more payment options, including:

  • Flexible payment options: Accept a variety of payment methods and give your customers more ways to pay their bills, on time and correctly. Offer bank transfers, credit card payments, and access to third-party funding.
  • B2B Buy now, pay later: Sell more, get paid on time, and let a third party, like Spenda, assess and assume the financial risk, giving you more certainty about your cash flow.
  • Installment payments: Offer your clients access to realistic repayment plans via a BNPL framework. Know exactly when you’ll get paid and better control your business cash flow.

Grow and get paid faster with Spenda

Spenda has the tools that can enable your business to offer payment plans and flexibility to your business customers. Whether your customers prefer to pay by bank transfer, credit card or Buy Now, Pay Later arrangement, Spenda offers all these options in one intuitive and connected digital platform. It allows your customers to have more flexibility in their accounts payable processes, while you get paid faster. You’ll also save time and resources that you would otherwise spend chasing down late payments.

Click here to download our free guide on how to improve cash flow management in your business and find out how you can get paid faster while creating an exceptional customer experience.

  • This article is for general information purposes only. Consult a qualified financial advisor regarding any changes or decisions regarding your business finances.

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