September 23rd, 2020 by Brian Erlien
Many companies today are looking for ways to strengthen customer and vendor relationships as well as improve working capital.
Here are four ideas that can do just that.
Vender & Supplier Communication
Do you offer your vendors an easy-to-use portal where they can submit invoices and verify if invoices have been received and processed for payment? By having a supplier self-service portal, you provide vendors the ability to submit invoices in whatever format they use and view not only current invoices, but past invoices as well. In addition to a self-service portal, utilizing AI-driven automation in your invoice approval process also helps strengthen both supplier relationships and working capital visibility by streamlining workflows to make payments faster. Often times vendors are reaching out because they what to know when they can expect payment. If you are unable to process invoices quickly, even if delays are due to vendor error, it can be detrimental to your relationship. This is where a front-end AP invoicing automation solution like Esker’s can help.
Early Payment Discount
Many suppliers today are willing to take an early payment discount, which essentially means that they will give you a discount if you pay faster. This is mutually beneficial, as it can help your suppliers better manage their business as well as generate more revenue for your company. It’s important to have a tool that can not only process incoming vendor invoices quickly and accurately but also keep track of vendors that offer a discount.
Improving AR to fund Early Payment Discounts
If you are paying vendors early, you will want to make sure you have the funds available. Accounts receivable tools like Esker’s Invoice Delivery and Collections Management solution can help with this greatly. This will not only allow you to bring in revenue faster but also provide a more accurate forecast looking forward. With enhanced control and visibility in your receivables, you will be able to take advantage of more early payment discounts and a number of other investment opportunities with the additional funds in your treasury.
Much like the vendor or supplier portal offer your customers an easy to use portal where they can see current and past invoices, make payments or even apply credits. If they consistently order your product or services let them set up automatic payments.
Any of these solutions on their own will certainly help your business, but when you combine them together, it can make a dramatic impact on your business’s efficiency, vendor/customer relationships, and profitability.
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