As your business grows and evolves, you may find yourself in a need of an automated vendor payment management system to bill your vendors. This can save the company a lot of time and effort as compared to processing the payments manually. In addition, it allows your company to focus more on its core activities rather than managing payments related tasks.
You might not be used to this new payment system, but let’s talk more about how it works. The hard part is that there are so many myths surrounding these digital payments, so we’ll focus on the top 5 most common misconceptions.
Through this process, you’re confident your vendor payments are made on time and are also secure. You can save time versus having to manually verify each month that payments were made to your vendors. This also helps you grow faster and optimize your cash flow for your future projects
Now lets look at the myths around this.
5 Misconceptions surrounding Vendor Payment management system
1. It can take long to pay vendors
If there’s a business concern you’ve noticed for the past 2 years, it’s undoubtedly been about payday. All of us are very familiar with what has created this problem – limited cash flow and salary delays – and how this is hurting many companies.
The all-time high in terms of companies failing to pay on time is revealed by The Hackett Group, which shows that around 62 days (2 months) elapsed while suppliers were waiting for payment during 2020’s peak pandemic time.
Small business owners are experiencing no delays when making payments.
Karbon Payout, as a vendor payment management system, strives to provide a stress free experience for businesses that use our platform. Their vendors receive their payment in full within 24 hours of getting approval. As an added bonus, virtual cards are easy to use and offer enable lightning-fast approvals.
You’ll have more time that you can focus on your growth projects, talent search, and so many other important opportunities because you’re not spending all of your time worrying about cash flow.
2. It is not possible to track your payment status.
If you use Karbon Payout, getting your vendor invoices approved is made easier as we offer a single consolidated dashboard. You’ll easily be able to see when a vendor’s invoice has been approved by the finance team and will receive an email notification of this approval.
This means you will be able to manage your cash flow in a much better way by paying your vendors on time, paying rent or investing in new products/services.
3. You’re going to be forced to pay your vendor only a certain way
Once you’ve adopted Karbon Payout into your entire organization, we will not force you to pay your vendors using only one single method. You have a wide array of methods to choose from. We even have an AI in place for auto-selecting the best payment channel for you, depending on your transaction amount and the time of day.
Businesses using Karbon Payout as their vendor payment management system are in fact free to act in a more flexible way as they can handle a lot of essential needs while also providing their vendors with the best possible outcomes. . The list of things that can be done with Karbon Payout is endless.
4. You will have to let go of control on your payment process
You’re not going to lose any sort of control. If anything, you’re going to have a better view and oversight of all your processes related to invoicing and payments. All key data about payments are stored in a single dashboard and provided to you at your own convenience. You can track metrics like payment status, payment amount, date and much more.
With Karbon Payout, you can sit back, relax and let that constant anxiety go. You can be confident in the way you’re spending your money because Payout allows you to know exactly when cash-flow boosting payments are headed your way.
5. You’ll anger your vendors and stress them out
Some businesses may be concerned that when a third-party facilitates processing of payments, it will put your vendor relationships at risk. However, this is not the case. In fact, the case is just the opposite!
Your life is going to be easier. You will not have to constantly keep contacting your vendors to ask them for their beneficiary details. You can just send a payout link to your vendor and let them add themselves to your beneficiaries! This way you’re able to avoid any possibility of a situation where tensions might arise.
Instead of worrying about petty manual issues like making vendor payment on time, you and your vendors can now focus on building a good and lasting relationship that is beneficial for your business in the long run. All of this made possible by the vendor payment management system that is Karbon Payout.
The Truth About Vendor Payments & AP Automation
The above 5 myths should not be paid much heed to. They are myths after all. What is not a myth, is the fact that Karbon Payout’s superior AP Automation technology helps vendors get paid on time, get paid faster and get paid without any mistakes. For the business owner, it enables much wider visibility into the company’s cash flow.
When using an online invoice system, it’s important to remember that you will always be able to see the status of your invoices and payments. You are deserving of control. Your vendors deserve to know when exactly they’ll get paid. You shouldn’t have to face a situation where your vendors are chasing after you to get paid and risk putting your relationship in jeopardy.
Growth VP @ Karbon