3 ways to sell your suppliers on credit card payments
TRANSCRIPT
3 ways to sellyour suppliers oncredit card payments
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Paying your suppliersby credit card canbenefit your business via:
Improvedcash flow
Better managed finances
Reduced expenses
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Both you and your bank can play a role in making that happen.
Before you can unlock those benefits, your suppliers must agree to accept cards.
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Your bank helps through“supplier enablement”
— working with you and your
suppliers to facilitate the transition
to electronic payments.
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Your most important job?
See the issue from
your suppliers’
perspective — so you
can explain how
this change will benefit
them.
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#1Shorter payment terms
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For example:
If you usually pay in 60 days
by check, offer 14 days by
card. That provides a cash
flow boost to offset the
payment fees.
Your suppliers will
incur a small card
processing fee.
Offer early payment
or shorten payment
terms so they can
further benefit.
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BONUS:
Those funds are
guaranteed and payment
is typically funded in 24-48
hours, unlike snail-mail
paper checks.
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#2Simplified accounts receivable
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Checks require the supplier to:
1. Open envelopes
2. Reconcile payments
3. Endorse checks
4. Make deposits
5. Wait for funds from
check processing
Accepting cards saves them time and money.
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The best solution:VCNs
Virtual card numbers (VCNs) are unique,16-digit numbers generated for specific transactions.
VCNs are the most secure and fraud-preventative credit card transaction
VCNs make it easier to identify and reconcile each payment.
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#3A safer payment process
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Checks aremost vulnerable.
of companies surveyed have experienced check fraud or attempted check fraud.
71%
— Association for Financial
Professionals
2016 report
Q: Why should your suppliers
care?
A: If you are targeted, their
payment will be delayed while
you sort out the problem.
Card payments reduce that risk.
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Key takeaways:
You can offset your suppliers’ transaction fees by
offering shorter payment terms.
Card payments (especially VCNs) streamline
accounts receivable.
Card payments are safer.
Facilitating new payment setup
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Your bank may provide supplier enablement services like:
Explaining benefits
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Contacting suppliers
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But …
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… you can contribute by understanding your suppliers’ point of view and explaining how they benefit.
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BONUS:
Enhance your supplier
relationships.
Creating a faster, more secure payment process can
strengthen your ties with suppliers — which is good for
your business and theirs.
SVB’s Global Treasury and Payments Advisors can share
more details about supplier enablement.
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Financial Group, used under license. B-16-15179 Rev. 02-16-17.
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Check out SVB’s Payments Trends and Insights page.