Owing to the ease-of-use,Business to Business Payments – Different Types & Challenges Faced! Articles convenience, and availability of modern technology, financial management has become quite easy for the modern businesses these days. While many businesses, still, use the traditional cash payments for their Business to Business payments transactions, there has been a rise of companies which have adopted electronic B2B payment methods.
When opting for a payment mode for your modern business, there are many factors that must be considered, such as security, processing time, etc. While one payment mode can work for a business and not for another one, choosing the right business to business payments methods can be quite challenging. This is why we bring to you this detailed guide on different types of methods available along with the challenges associated.
The different kinds of B2B payment mediums
Cash
This is the traditional method that has been used by most businesses since a long time, but this seems to be gradually obsolete. These days, especially when it comes to business to business payments, it seems weird to come and pay a supplier a briefcase full of bills.
Checks
In addition to cash, accepting checks is also another commonly used traditional payment method. After all, it is relatively easy and there is also a trust factor associated with this payment mode. This category includes traditional https://rozwijajfirme.pl/ paper checks and electronic checks issued by a purchaser to a seller. Once the check is deposited to the bank, the payment request from the buyer’s bank will be sent to the seller’s bank.
Wire transfers
In this modern day, when more and more businesses are working with clients who may be located in other cities or countries, using wire transfer has gained popularity. Introduced over 150 years ago by Western Union,the payment is electronically routed through a financial network like SWIFT and Fedwire. While it can be expensive, but many businesses rely on this method to accept payment from international clients.
Credit cards
Almost everyone, these days, owns a credit card and it can be accepted for business to business payments. However, it is not accepted by many businesses, especially the ones operating at small scale because of the processing fee involved.
Payment gateways
If you have been working with the international clients for long, you would be aware of the different types of payment gateways such as Paypal, Stripe, Square, and Bill.come. The best part about using these payment gateways for payments is that the buyer can make the payment to seller, which is received instantly. The process is quite easy, allowing the buyers to pay for good and services online during the checkout process.