From Good to Great: How Supplier Payments Transform Business Relationships
The relationship that businesses have with their suppliers is key. These invaluable partnerships enable organizations to operate smoothly, funding...
3 min read
DocuPhase
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Jul 25, 2024 11:07:22 AM
In today’s fast-paced world, efficient, accurate, and secure financial management is vital. When it comes to vendor payments, many businesses turn to their banks to handle these transactions, believing that they can provide the simplest and most secure option.
However, banks often fail to provide the comprehensive solutions businesses need for high-level, optimized accounts payable procedures. This is where an automated AP solution comes in, seamlessly transforming AP processes into effective, modern financial operations.
In this blog, we’ll take a look at the risks of relying on your bank to process important vendor payments—and why an automated AP solution is the better choice.
While banks are often trusted resources for many things financial—accepting deposits, lending credit, playing the role of mediator between various businesses, and more—AP-related processes aren’t exactly their forte. It’s like seeing a general practitioner for a highly specialized surgery. While they may be able to perform the necessary procedure, a specialist surgeon would provide more precise, expert care.
The generality of bank-run vendor payments displays itself in a number of ways, but the most obvious include:
Banks typically offer basic payment processing services. While these may suffice for smaller businesses with limited and straightforward business needs, mid-sized, growing, and large companies require more advanced AP functionality.
If your business relies on its bank for vendor payments, it may experience:
Banks are highly regulated regarding security—but even those safeguards rarely account for the same level of specialized features and compliance support that modern AP processes require. Vendor payments that are processed through your business’s bank may experience:
We’ve touched on a few reasons why using your bank for vendor payments can cause more harm than good—and a few ways an automated AP solution is a more intuitive partner to process these transactions.
Perhaps the most important reason to turn to an all-in-one AP system for your vendor payments is this: that’s what it’s been designed to do. While banks can handle these payments, that’s not their primary function.
With this discrepancy in mind, it’s important to note an area where an AP solution can have the biggest impact in regards to vendor payments: your business’s vendor relationships. Banks simply can’t offer the level of support and vendor-centric support that an automated AP solution provider can.
An all-in-one AP and payments provider helps improve your vendor relationships by streamlining the ultra-important payment process and providing valuable visibility into its overall health. This often looks like:
In the past, banks have been a standard choice for vendor payments. However, in the modern business world, they often lack the comprehensive functionalities, cost efficiencies, security measures, and relationship-building tools that best benefit AP and payment processes.
An all-in-one AP and payments provider can offer a more streamlined, efficient, and secure solution, helping your business save time and money while cultivating healthy vendor relationships. If this sounds like something your business could benefit from, schedule a demo with a DocuPhase AP and payments automation expert today!
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