Ensuring Strong Supplier Relationships
AP Card payment methods can make suppliers happy, help your business
As a purchaser of goods and services, your payment decisions can have a significant impact on your supplier relationships.
Strong supplier relationships often start by offering payments in the way they prefer to receive them. Many suppliers may opt for payments using a virtual credit card like the CommercePayments® AP Card while others could want payments through ACH or check. With any payment method they choose, there are three areas that are typically top-of-mind for most suppliers:
Getting paid fast: It goes without saying, but suppliers want to receive payments as soon as possible. What are you doing to meet that need? If your accounts payable process is automated, it’s likely you’re paying invoices in a timely way – which could benefit your business, too. Often, you can negotiate better pricing or discounts in return for agreeing to short- or early-payment terms. Another benefit of automated payments is having a real-time snapshot of your cash on hand.
Making processing payments easy: Suppliers are just like any other business – the less complicated business practices are, the better. How difficult are you making it for them to receive your payments? If you’re paying by checks or ACH your supplier has to process and store them manually. Mailing checks can cause payments to slow down or worse, get lost. Your supplier will appreciate anything you do to help them create efficiencies.
Reducing fraud risk: Secure payments are a paramount concern for suppliers and for you. What are you doing to reduce the risk of fraud in your payments? There are security considerations surrounding all payment methods but it’s worth noting the CommercePayments® AP Card is considered more secure than ACH and check payments for several reasons, including: it has the backing of Visa® for any fraudulent use; the card payments cannot be processed for more than the value assigned to it; and the Commerce Bank enrollment team calls suppliers and verifies the recipients who will process card payment.
As a purchaser, you can be a business ally for your suppliers by ensuring you’re providing quick, easy and secure payment methods for them. Contact Commerce Bank to learn how a CommercePayments® virtual card can build stronger supplier relationships – or learn more about how we support the construction industry.
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CommercePayments® solutions are provided by Commerce Bank.