A/P Series Part 3: Different Payment Types
In my previous post, I discussed how paying with checks is, in fact, not always a good idea. Eliminating the use of checks is one step companies can take to be smarter and more strategic with their Accounts Payable (A/P). The next step involves the incorporation of diverse payment types.
A strategic A/P department works smart. Working smart in A/P means evaluating how and when a company pays its suppliers. By using varied payment types (cash, check, credit card, ACH, etc.), a company can realize specific benefits and pay suppliers how, and when, they want to be paid. For example, in the case of incidental, ad-hoc and non-PO purchases, utilizing a P-Card (or credit card) to earn rewards or rebates makes sense and is a smart option. However, for standard procure-to-pay purchases, a Supply Chain Finance program is the smarter, more strategic option. Benefits of this method include leveraging lender payment expertise to pay the suppliers, automating payments, improved supplier relations and better utilization of the A/P department. A Supply Chain Finance program can also improve your client’s bottom line – they can extend their payment terms resulting in what is essentially an interest-free loan.
We understand that there is no perfect one-size-fits-all payment strategy that will work for all of your client’s suppliers. By paying each supplier the right amount at the right time with the right payment type, lenders, their clients
Contact us, let’s talk about how your clients can use Supply Chain Finance, the smartest choice that maximizes payment types and benefits for both your clients and their suppliers. As a strategic banking or lending partner, you can work with each client to implement our state-of-the-art ArtisPay Supply Chain Finance program and determine the best payment types for their suppliers to ensure a win-win for all parties.
For more information, contact the Artis Trade team via email at admin@artistrade.net.
Robyn Barrett is a founder of Artis Trade Systems and the managing member of Factors Southwest, LLC, (dba FSW Funding) an independently owned and operated factoring firm. She helps small to mid-sized business-to-business companies secure funding that may not otherwise be available. By giving them access to the capital needed to grow, FSW Funding is helping shape the business community.