Innovations in payment and financing services are changing the way that organizations around the world conduct business.
This financing transformation is being driven by a business commerce environment that has been plagued by late payments and tight cash flow during the past few years, which have particularly impacted small to mid-sized suppliers.
Several factors have contributed to this culture of late payments, including a business environment with poor financial processes, and in some cases, a lack of automated invoicing and payment systems. Another contributing factor is that many companies have been holding onto their cash as long as possible to improve their working capital.
Fortunately, the advent of alternative financing services, innovations in e-invoicing and payment technology, and increasing market demand are sparking a new era in B2B commerce.
Following are some trends, issues and developments that are enabling this transformative shift:
The combination of new solutions, growing market demand and government impetus are paving the way for this year of B2B payment transformation. Better financing terms and improved cash flow put buyers and suppliers on equal footing and, as a result, strengthen their relationships. In this new era, the logjam of trapped cash finally opens up, providing more opportunities not only for business growth, but also for the economy as a whole.
This article was written by Ad van der Poel from PaymentsSource. This reprint is supplied by BNY Mellon under license from NewsCred, Inc.
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