Here Are the Most Suitable B2b Payment Solutions and Methods

Every business person always tries to find the best way to ensure the smooth running of their business. Departing from that concept, various schemes emerged that facilitate business processes. One of them is the B2B alias business-to-business payment method . The B2B transaction method offers special payment solutions for micro, small and medium entrepreneurs to large-scale companies. However, before discussing more about what a B2B payment scheme is and the solutions it provides, it is important to understand the term B2B in business. Investopedia defines B2B as a form of transaction between businesses, for example a manufacturer with a wholesale distributor or a distributor with a retailer. The opposite of B2B is B2C or business-to-customer . In B2C, transaction relationships occur between business people and customers. For example, what happens in markets or grocery stores, where the seller deals directly with the buyer as the final consumer. There is also the term business-to-government (B2G), namely transactions between business people and government agencies.

Read: B2B Transactions: Nature, Types, Examples, and Methods B2B payment Spain Phone Number List scheme Business activity is not only about selling goods or services to consumers. There is also interaction between fellow business people. This interaction includes transactions for various needs, such as purchasing assets, leasing transportation, and wholesale. To facilitate these transactions, a number of B2B payment schemes are available. B2B payment methods are generally different from B2C. In the B2B scheme, most transactions still use invoices or invoices to pay or request payment for goods/services. Meanwhile, in business transactions with consumers, there are a series of more varied choices, from cash payments, credit cards, debit cards, to digital wallets. However, in recent years, digital payment solutions have emerged that are more practical, effective and secure for B2B transactions. This solution offers a different financial approach to B2C according to the nature of business transactions. However, business people must be careful in choosing the right B2B payment method for the smooth running of their business. (Read: How to Transfer Large Amounts of Money for B2B Payments ) B2B payment challenge Every business needs certainty, speed, and convenience. No exception in terms of inter-business transactions. So far, B2B payments have had a number of challenges that could affect business travel, such as: Volume : The value or volume of transactions between businesses is generally large. Frequency : Transactions usually take place on a regular and recurring basis. Human resources : There are still limited human resources that handle B2B transactions, both in terms of quality and quantity. Payment period : Usually payments are made within a certain period, for example every seven days, not immediately when the transaction occurs. Preferences : Sometimes there is a mismatch between the types of payment methods that are commonly used by businesses.

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B2B payment methods The conventional B2B payment methods that are still widely used and face the above challenges include. Cash Cash payments are impractical when the transaction volume is large. In addition, when carrying large amounts of cash at once, there are risks related to security. There is also the problem of determining exchange rates when B2B transactions are carried out by two business entities in two countries with different currencies. Check Writing the amount of money to be paid on a piece of paper check it seems easy. But this method of business payment is not efficient because it usually takes days to be disbursed. The arrival of money is also uncertain, making it difficult for business people to plan their business development plans.