Every organization is trying to manage vendor payments based on cash flow, however many organizations are now moving towards disciplined “Revenue Management” that includes both pay-in and pay-out. Most of the businesses, online or offline, have implemented advance payment or pre-paid models for better cash flow. We are also witnessing that the same organizations are trying to have effective vendor management and they are implementing compliances & policies on “Timely Payment”.

What is vendor payout?

Vendor payout, also referred to as supplier payments, form an indispensable component of business-to-business (B2B) payment and represents the conclusive phase of the purchase-to-pay cycle for any organization. This essential process entails financial transactions executed by a business enterprise to compensate external suppliers or vendors for goods or services procured from them. Given its criticality, it is imperative that vendor payout processes are seamlessly executed, meticulously managed, and structured in a manner that is feasible for the organization, thereby guaranteeing a healthy rapport with the vendor ecosystem.

Problem with Vendor Payments

Though vendor payments are an integral part of any business, there exist several problems and associated challenges that linger the entire process. A few of these problems are listed below.

• Legacy systems and use of spreadsheets to maintain invoices
• Manual payment processing that is time-consuming, error-prone, and expensive.
• Reconciliation challenges and difficulty tracking the payment status. It may lead to missed payments, late fees, and damaged relationship with vendors.
• Lack of transparency in payment processes that lead to disputes and delays.
• Security concerns, such as the risk of fraud and data breaches, particularly when payments are made using paper checks.
• Limited payment options that may not accommodate needs of all vendors.

To address these problems, businesses need a comprehensive approach that includes implementing vendor payment automation, choosing the right payment methods, and establishing clear communication channels with vendors.

How can you streamline vendor management and vendor payments?

Building and maintaining strong relationships with suppliers and vendors who provide goods and services is crucial for any business to thrive. By implementing effective vendor management strategies, you not only improve supply chain efficiency but also reduce costs. When it comes to managing vendors, one of the most crucial aspects is timely and accurate vendor payment. Ensuring that invoices are verified and approved by authorized personnel, payment information is accurately recorded, and accounts are reconciled, can go a long way in establishing trust and maintaining a positive relationship with your vendors.

Here are the key steps involved in vendor payment process:

1. Receiving invoices from vendors
2. Verifying the accuracy and validity of the invoices
3. Obtaining approval for payment from authorized personnel
4. Initiating payment to the vendor, either through electronic or manual payment methods
5. Recording payment information in the accounting system and reconciling accounts

Negligence or error in any one of these steps may lead to distrust and loss of your brand reputation. This is where vendor payment automation comes to rescue offering you a smooth payment processing workflow, for payments of all sizes.

How Tilli’s Monay resolves your Vendor Payout woes?

If you are dealing with multiple vendors preferring different payment methods, Monay is just the right platform for you to simplify and streamline your vendor payout process.

At Monay, we offer a single-platform solution allowing seamless and efficient vendor payment management that saves time and reduces errors.

• Get rid of managing multiple sheets or invoices with our smart and responsive dashboard with a single-window view.
• Automatically populate the invoices reducing risk of manual data entry.
• Make timely payment disbursal and track the payments
• Send timely reminders, collect payments, and enjoy a healthy relationship with your vendors
• Add new beneficiaries in a hassle-free manner and start transacting immediately

How does Vendor Payout Look Like with Monay?

1. Fetch respective invoices.
2. View and verify relevant invoices.
3. Select one, few or all the invoices to make a payment.
4. Click on “Pay”
5. Select your choice of payment mode.
6. Make immediate payment.
7. Update accounting system for reconciliation
8. Get your vendor notified about the payment automatically!

Streamline your B2B payment process effortlessly with Monay’s vendor payment solution, featuring a user-friendly interface for easy invoice processing, real-time tracking of payments, customizable approval workflows, and automated accounting tasks.

Let us help you make your vendor payout an easier and more efficient experience with Monay, a Tilli Product.

Send us your queries right NOW!

The post Timely Payment is the Key for Any Business! Vendor Payout Automation Need-of-the-Hour! appeared first on Monay.

The best business practices ensure operational efficiency, better control over funds, and healthy liquidity which is possible with a steady cash flow. Be it your inventory requirement, paying dues on time, or settling the payrolls, enough capital in hand is a prerequisite to achieving optimum business operations.

However, the standard payment cycle debars your access to the funds for at least two to three days from the day of the transaction done by the customer. The situation gets troublesome when Sundays and bank holidays come in between.

That’s really awful!

But, why should a business wait to access its own fund?

Thankfully, as a merchant, you need not wait for that long with today’s modern and instant payment systems operating at full scale and facilitating real-time payments at large.

Digital Payment Gateway like Monay, offers a streamlined settlement process offering businesses with faster payment collection and access to the funds. Partnered with leading financial institutions and compliance-ready, Monay brings instant payment settlements to businesses so that they can use the funds immediately and keep their business rolling.

Now, let’s understand how an instant settlement is different from the regular settlement cycle.

What is a regular payment cycle?

When a payment is made in a default settlement cycle, it takes a defined period of time to get the amount credited to your bank account. Once the customer makes the payment, it may take T+2 or T+3 days (T= Transaction, +3= 3 bank working days) for you to access the funds. This gap from the day to payment to the day of payment realization in the account may lead to a liquidity crunch if you have to make any immediate payroll payments or order an inventory.

What happens in real-time instant payments?

When a payer initiates a payment to the beneficiary using real-time settlements, the payer’s bank sends the payment to the real-time payments system. The request is verified by the system, and the payment is then sent to the recipient bank. In turn, the beneficiary bank accepts the payment and credits the beneficiary’s account within a few seconds.

The instant settlements are done 24X7 and you don’t need to worry about sending or receiving payment on Sundays or banking holidays.

Benefits of Instant Payment Settlement to the Businesses

Global payment systems like Monay Payments bring myriad benefits to businesses in improving the cash flow over the standard payment settlement cycle that delays access to funds. Let’s have a look at them.

 Get over the payment uncertainties

Businesses can operate with complete peace of mind when their payments are settled instantly; irrespective of whether it’s a working day or a bank holiday. With working capital in hand, merchants can plan their future expenses, operational cost, and cash reserves better.

Address payoffs and dues

With instant cash in hand, businesses can pay the staff salaries, clear the dues and vendor payments, pay off loans, and meet ad-hoc operational expenses on the go. This keeps the business rolling smoothly without any worries around unsettled funds.

Manage your cash better

Cash management is an extensive activity, but when you have instant access to the funds and insights into your transactions through a Payment Gateway like Monay, your cash management becomes an easy-going experience. With instant settlements, enjoy control over your working capital, plan cash reserves, and streamline your expenses like never before.

View detailed payment analytics

Businesses using a Payment Gateway can use their in-built dashboard to check for the most widely used payment mode by the customers, the net transaction amount, the pay-outs, and cash inflows. This analytics can be tracked on a day-to-day, weekly, monthly or custom basis. Consequently, all this information can be used for better marketing and sales initiatives.

Faster growth and scalability

Convenient access to funds keeps businesses ready to respond to any new opportunity or expansion plans on time. With enough financial backup, they confidently explore new avenues and scale their business strategically. They also remain prepared to address any challenge or crisis on time and avert serious consequences.

Is standard settlement slowing down your business?

If your business is also facing daily cash crunch with the standard payment settlement cycle, it’s time to switch to Monay solutions for instant payment. It is one of the most suitable platforms for the settlement of instant payments for payment aggregators, retailers, and other businesses offering multiple choices of payment modes including debit card, credit card, international card, UPI, Digital Wallet, Bitcoin, ApplePay, AmazonPay, eCheques, and more.

Meet your financial obligations on time with cash in hand and keep rolling your business to higher limits.

Send us your queries and understand how real-time instant payments from Monay can help your business grow.

The post Why Do You Really Need a Quick Payment Settlement for Businesses? appeared first on Monay.

The post The Changing Landscape of B2B Payments and Market Trends to WatchOut appeared first on Monay.

Key Topics Covered

• Earlier when ratepayers did not have the option to choose their utility provider, the utility firms weren’t very concerned about how customers and consumers engaged with their product.
• Now, in a digital-first world, utility providers need to re-evaluate their traditional methods of consumer communication, in order to meet the demands of today’s ever-demanding customers who think and expect differently. the demands of today’s customers who think and expect differently.
• The users now expect quick billing, multiple payment options, personalized communication and easy payment processing which is all possible through the adoption of digital payment options and Omni-channel communication.

Improving the Customer experience is quite a new buzzword among businesses, particularly in the utilities sector. Earlier when ratepayers did not have the option to choose their utility provider, the utility firms weren’t very concerned about how customers and consumers engaged with their product. This scenario still exists in some local governments even today, but many have realised the enormous advantages of modernising their customer-facing systems.

The surge of customer-centric solutions

We live in a civilization that is entirely digital. While this paradigm change has a lot of advantages, it also necessitates re-evaluating the utility industry’s traditional methods of consumer communication, in order to meet the demands of today’s customers who think and expect differently.

From our needs to wants, we have automated our lifestyles from every angle to bring things at our finger tips. Starting from online groceries to medicines, doctor consultation, movie ticket booking, accessing bank accounts, making online payments and everything else, we get our things done at the click of buttons. This shift is not small and it only triggers higher customer expectations in every industry.

The bottom line is; people prefer more comfort in meeting their daily responsibilities and this expectation comes true even with a utility company. Their users expect quick billing, multiple payment options, personalized communication and easy payment processing.

Seamless payment options for utilities

The ratepayers across the board have different payment preferences. While some still want to continue payments through traditional methods like cheques, others are adopting gradually to mobile digital payments.

Offering multiple payment options simply allure the customers with choices they get. When they are offered the choice to interact with a service in their preferred mode, they are more likely to stick with the provider, instead of getting enticed to others in the industry.

Let’s understand this with real-time scenario:

You send payment reminders for electricity bill to your customers through emails. They might not check it and the bills remains unpaid for two weeks.

Now, consider a scenario, when you send an email or a message asking your customers to download your mobile app instantly. The app gets downloaded and your customers receive notification about the bill, which prompts them to make the payment instantly from their devices.

By doing this, you are simply opening up one more option for your customers to make quick payments in a very convenient way. They might like it and continue doing so always!

How it helps the electricity companies?

These digital adoptions, not only keep your customers happy, but also help you reduce your daily sales outstanding (DSOs). Your customer care centre also remains less overwhelmed with fewer people making daily calls to pay their bills. Overall, you reduce your operational cost too, while ensuring more frequently cash inflows.

The downloaded app also helps your customer get a snapshot into their electricity usage, bill, and the ways to figure out energy-saving measures. The long-term result is freedom from un-wanted pressure on utility companies, a lot of cost saving, and reduction in DSO.

The bottom line is that, today’s customers are savvy, they want options and convenience in everything they do. The utility companies need to keep pace with the changing digital era and the changing expectations of the customers. They must scrub out the notion of “traditional” with them and slip into the digital age for better operations, customer experience and outcomes.

If you are also willing to level up your customer communication or digital payment experiences, ask for a MonayPayments demo today!

The post Frictionless Payments are Driving the New Customer experience in Utilities appeared first on Monay.