Beyond corporate payments: Build better supplier relationships through secure payments

Strong supplier relationships are the bedrock of a thriving business. These relationships can provide you with a number of advantages, including access to better quality products and services, more competitive pricing, and smoother operations.

One of the most important factors in building strong supplier relationships is trust. Suppliers need to know that they can rely on you to pay your bills on time and in full. This is where secure payments come in.

In the second installment of our three-part “Beyond corporate payments” series, we take a closer look at how secure payments can enhance your supplier relationships and contribute to overall business growth.

Using secure and fast payment processes can help to reduce uncertainty in managing transactions and build trusting supplier relationships. When suppliers know that they will be paid securely and promptly, they are more likely to be willing to work with you on favorable terms.

The PYMNTS 2024 Certainty Project Report, sponsored by WEX, reveals a key finding: The way you pay matters. Secure, fast, and flexible payment processes are a cornerstone of building trust and collaboration with suppliers. Here’s how:

Secure payment processes offer attractive benefits

There are a number of ways that secure payments can help to build trust with suppliers.

Timeliness: From the heads of payments surveyed, 88% said that using faster payments options enabled business growth. One of the most important ways that secure payments can build trust is by ensuring that suppliers are paid on time. When suppliers know that they can rely on you to pay your bills on time, they are more likely to be willing to work with you in the future.

Accuracy: Secure payments can also help to ensure that suppliers are paid accurately. This means that you are less likely to have disputes with suppliers over invoices.

Transparency: Secure payments can help to improve transparency in your business relationships with suppliers. When suppliers can see that you are using a secure payment system, they know that their payments are being handled properly.

Reduced risk: Given the ongoing risks of fraud and theft, businesses across all industries must prioritize security. Secure payments can help to reduce the risk of fraud and human error. This can give suppliers peace of mind knowing that their payments are safe.

Virtual payments enable visibility and control

Suppliers value transparency and control over their finances. Secure payment solutions like virtual cards offer real-time transaction tracking and spending controls, allowing suppliers to manage their cash flow effectively with granular insight on transactions. Using virtual payments instead of cash or paper checks can save time and money.

Reduce the risk of fraud using virtual payments

Fraud is a growing concern for businesses of all sizes. By using secure payment solutions like virtual cards, businesses can reduce the risk of fraud and protect their sensitive financial information. Virtual cards offer enhanced security features such as tokenization – using a single-use virtual card number that can be controlled through predetermined spending limits. This makes them a safer option compared to traditional payment methods.

Flexible payment options for broader acceptance

Around 1 in 5 heads of payment identified payment method flexibility as a key driver of business growth. Flexibility is important to allow firms to adapt to changes in the industry and in the needs of their suppliers. 

Suppliers appreciate flexibility in payment options. Offering a variety of payment methods can help meet the needs of different suppliers and strengthen the buyer-supplier relationship.

Reduce payment friction with AI-driven accounts payable

From the heads of payment surveyed, 90% experienced frictions in paying their suppliers in the last year. 

Friction like late payments or errors in invoices can disrupt business relationships. The report highlights that companies using AI-powered accounts payable (AP) processes are more likely to experience fewer payment problems. 

By automating payment processes, businesses can reduce the risk of human error, improve accuracy, and ensure timely payments. This not only strengthens supplier relationships but also improves cash flow and reduces administrative costs.

The bottom line: Simplicity, security, and flexibility

Ultimately, heads of payment prioritized three main concerns when choosing payment options for their business: 

• Flexibility in payment terms
• A simple payment process
• Enhanced security features

Building long-term supplier relationships

Secure payments are just one piece of the puzzle. Building strong supplier relationships requires open communication, mutual respect, and a commitment to collaboration. Here are some additional tips:

• Establish clear communication channels: Regularly communicate with your suppliers to understand their needs and concerns.

• Develop a collaborative approach: Work with your suppliers to optimize supply chains and find mutually beneficial solutions.

• Invest in long-term partnerships: Look beyond short-term cost savings and prioritize building trust over time.

• Provide timely feedback: Share feedback on supplier performance to help them improve their services.

• Involve suppliers in process improvement: Collaborate with suppliers to identify and implement process improvements that benefit both parties.

WEX: A leading provider of secure payment solutions

WEX offers a comprehensive suite of secure payment solutions that can help businesses strengthen supplier relationships and improve their financial performance. WEX’s solutions include:

Virtual cards: WEX virtual cards provide a secure and flexible way to make payments, reducing the risk of fraud and improving cash flow.

Supplier enablement: WEX’s supplier enablement can help you onboard and educate your suppliers about the advantages of virtual card payments, making the transition smoother and more beneficial for both parties.

Corporate cards: WEX corporate cards offer a range of features and benefits, including spending controls and real time reporting to give you better insights into your business expenses.

Fleet cards: WEX fleet cards can help businesses manage their fleet expenses and track fuel consumption.

AP automation: WEX AP automation solutions can streamline the accounts payable process, reducing errors and improving efficiency.

Secure payments are an essential part of building strong supplier relationships. By implementing secure payments, you can reduce uncertainty, improve cash flow, enhance efficiency, and build stronger relationships with your suppliers.

For more insights and updates on corporate payments, check out:

• Virtual card rebates
• Current trends in finance
• Accounts payables: Terms you need to know

Learn more about how WEX payment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

Stay up to date on the latest in business payments by subscribing to our blog! Simply hit the “Subscribe” button above or submit your email address in the form below.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax, and investment advisers.

Source: 
PYMNTS 2024 Certainty Project Report