Cash flow issues can always arise no matter what size your business is, and when they do, you need a fast solution. That’s why so many companies take advantage of buy now pay later for business (BNPL) services like those offered by Selectpay. Not only can such solutions save time and money but also help you eliminate late invoice payments.
Here we’ve collected some insight into why BNPL for business can help you say goodbye to late invoice payments!
Why Are Invoices Paid Late So Often by Businesses?
There are several reasons why businesses often put off paying invoices past the traditional 30-day waiting period. Some of the most common include:
- Invoicing Errors & Insufficient Accounting: One of the foremost reasons businesses pay their invoices late is often due to invoicing errors that occur, especially if they don’t have an automated system in place. Human errors can occur in the accounting department, and unfortunately, this often leads to invoices being missed altogether. Administrative errors and things like the wrong address often throw a wrench into the payment/accounting process as well.
- Cash flow Concerns: Just like your business may experience cash flow issues occasionally, so can other ones just as easily. This can often lead to deferring the payment of invoices until their accounts are balanced again. By holding onto their cash reserves, if possible, companies can cover the costs of payroll, buying new equipment, and other necessities.
- Lack of Late Invoice Penalties: If your business doesn’t have strict guidelines in place for paying invoices on time, or there are no penalties if a company doesn’t, your invoice will likely be pushed to the bottom of the list. This means you’ll have to follow up again and again until it’s paid.
How B2B Buy Now Pay Later Helps All Stakeholders
Whether you’re a business that needs to be paid or one that is required to pay for goods or services, B2B BNPL for business solutions can help all involved. This is because it allows your purchasers to buy your goods and services and then pay at a later, more convenient date, enabling both parties to keep their cash flow under control.
Since B2B BNPL services mean that a third party is handling all the invoice collection, you won’t need to worry about mistakes, or tracking down late payments, saving both time and money.
How Selectpay BNPL for Businesses Can Help You
Selectpay helps you and your client maintain the proper cash flow and eliminate late payments providing them with the option to pay invoices in four easy instalments over time, while you get paid for your goods/services upfront. All that’s required of your clients is a one-time, upfront fee.