How to Avoid Being a Late Payer

Late payments might often be nobody’s fault, but they can damage your business’ reputation and bottom-line.

Every business, big or small, knows the pain and frustration of late payments. It’s all too easy to inadvertently be late even when you have the best of intentions. It’s an inevitable result of the way many companies set up their payment process, with multiple manual steps and responsibility passing from department to department, creating several stages where a bottleneck occurs.

Supply and reputation at stake
All too often, the problem is systemic rather than anything to do with employee competency. An unexpected glitch or delay in any part of the process can be the leading factor. It’s too easy to get in a situation where two departments (such as Finance and Procurement) are both waiting for the other to complete a step, meaning nobody realizes they need to take action to get things moving.

Late payments aren’t just a problem for sellers. The buyer loses goodwill and reputation, especially if delays become a pattern. If you don’t pay on time, you may face penalty charges. You could even face business disruption, a block on supplies until the payment clears, or a service shutting down.

Removing the roadblocks
Automated systems such as an eProcurement solution can overcome many of these problems. They effectively turn everything, from your business placing an order to the supplier receiving a payment, into a streamlined process. Procurement can simplify and minimize the number of steps it takes someone to review and approve, without compromising your ability to oversee and control the process.

With an eprocurement software in place, you can receive invoices from a supplier and verify them, match them to purchase orders and receipt documents, and sync with your ERP or financial system to release payment, all with minimal human intervention. Because the payment is now quicker and more reliable for the supplier, you not only don’t need to worry about late payment fees, but you may even be able to negotiate discounts for prompt payment.

Your next step
Prompt payments is just one benefit of a good procurement solution. Contact us today to learn more about the endless benefits your organization will realize when you have streamlined processes and easy to use solutions to make it happen.