There are a variety of different ways to pay businesses for products and services as a business owner or manager, ranging from cash, to credit, and checks. However, more and more businesses are switching to a B2B payment gateway that streamlines the entire process. If you are considering a B2B payment solution, here are three reasons why you should invest in them.
Less Red Tape Or Fees
There can be a lot of barriers to using other forms of payment. Paying with a credit card can be exhausting depending on who has to shoulder any fees, and paying in cash can be cumbersome simply because it's a physical item that's easy to lose. Plus, you don't want to get dinged by the IRS for paying under the table. Roughly half of all B2B payments are made with checks, but this can make it hard to analyze your revenue over time as the payments are usually delayed by a at least few days. Meanwhile, payment gateways usually have little to no fees and fast processing times in a virtual environment.
Large Volumes And Frequent Transactions Are Easy
Using other forms of payment can be a hassle the more often you do it. B2B payment gateways allow you to transfer large funds multiple times a day with just a few clicks, while checks and cash can be more cumbersome. You can easily run out of physical checks to write, and purchasing more checks can increase the costs of your business. Meanwhile, paying with cash frequently requires either frequent trips to the bank or steady and constant storage of cash. If you don't have cash readily available or aren't willing to take the risk, then it's even harder. Credit cards can have limits too low to work with as well.
Records For Taxes
One of the best reasons to use a business-to-business payment gateway is that it is far easier to keep track of your revenue and expenses through the virtual gateway than it is to keep records of cash flow in other manners. Credit card statements can be difficult to parse even with minimal usage, and cash and checks both require some level of physical record keeping. You could try using bank wire transfers, but this requires knowing the other business's account information (and them knowing yours). Payment gateways can show you your transactions over time with ease well before tax season hits.
There are many reasons why you should invest in a B2B payment gateway for your business. These forms of payment have lower barriers to entry, fewer fees, are easier to use, and streamline record-keeping for tax purposes. If you're looking for a B2B payment gateway, contact Bento for Business to get started.