Trying to get paid can be one of the most difficult aspects of running a business. There are hundreds of tips and tricks on the internet to help accounts receivable departments work toward faster payment, however, not many mention the idea of using online bill pay. This tools is surprisingly underutilized in the B2B payments world. We’re going to take a look at a few way online bill pay helps you get paid faster in the B2B payments world.
If your customers are still paying you with cash or checks, there will come a time where no matter how many tricks you employ, you simply can’t get paid any faster. Checks inherently slow down the process due to the nature of how they work. This process includes waiting for the customer to write the check, waiting for it to come in the mail and waiting for it to clear. With online bill pay, what usually could take a week can take only 24 hours. Customers can simply receive an email and click a link, then pay via ACH or credit card.
Additionally, there is always the possibility that a check won’t clear. When this happens, you then have to restart the entire payment process with a customer. After contacting them to let them know that the check did not process correctly, you have to wait for them to send another one. With online bill pay, this is not even a possibility.
NO “LOST” OR “MISSING” INVOICES
When invoices are no longer sent through traditional mail and are only sent via email, there is less chance of a customer using the excuse of never receiving the invoice, and therefore not paying on time. Even if they can’t find the email initially in their inbox, you can keep them on the phone while you send another and wait for confirmation that it was received, instead of hoping the next one you sent through the mail makes it. When invoices are more visible to customers using online bill pay, the greater your chances of getting paid faster.
Moving on from the actual physical costs you would save, self service in online bill pay gets you paid quicker. Instead of waiting for a check to come in the mail, the customer is able to immediately click a link and enter in their credit card information to pay the bill. Sometimes those mailed checks can take forever, whereas an online credit card or ACH purchase is immediate.
Online bill pay eliminates paper costs and the cost it takes to send out reminders and invoices. Further, it is freeing up staff time to do more important tasks like making calls to customers, which releases a lot of cash as well. The actual presentment of your bill to customers can make a huge difference in where your investments lie in accounts receivable.