Streamlining Business Finances: Corporate Payment Solutions

CHARLOTTE, N.C. - Oct. 14, 2024 - PRLog -- After researching our customer and prospect databases, we find In 2023 corporate America still makes over 50% of its payments via check. Perhaps your company falls somewhere near this statistic? This persistence in using a paper-based approach led us to investigate the underlying reasons for this bad habit.. The findings were far from compelling, but they shed light on the challenges faced by businesses:

1.Tradition Prevails Over Progress: One of the most commonly cited reasons for the continued use of checks in corporate payments is the adherence to historical convention. It's often the case that the phrase "that's how we've always done it" becomes the default justification. However, this should never be a sole reason for maintaining outdated processes, especially when modern alternatives are readily available.

2.ERP System Limitations: Another significant roadblock to adopting modern payment methods lies in the limitations of ERP (Enterprise Resource Planning) systems. Many companies struggle to efficiently collect, track, and manage ACH bank routing numbers and account numbers within their existing ERP systems. Additionally, some organizations view housing this sensitive financial data as a potential liability.

3.Inertia in Vendor-Payor Relationships: Transitioning to modern payment solutions is also hindered by the inertia within vendor-payor relationships. Many payors lack a structured process to actively encourage and facilitate their vendors in moving away from check-based payments. This inertia perpetuates the reliance on outdated payment processes.

Turning Accounts Payable into a Profit Center
The good news is that adopting modernized payment solutions is not as daunting as it may seem. In almost 100% of cases, it proves to be an accretive process that can transform the accounts payable (AP) department into a profit center. The concept of AP as a profit center might raise eyebrows initially, but understanding payments modernization reveals its simplicit

Unlocking Cash Rebates with Virtual Cards
The 20% of payments that move to virtual cards offer a unique opportunity for businesses. Virtual card payments (https://www.slipstreamfinancial.com/payment-card-solutions) come with the added benefit of earning cash rebates on a monthly and ongoing basis. In many cases, these rebates can accumulate to yield payors hundreds of thousands of dollars per year. This not only streamlines AP but also turns it into a profit center.

The Profitable Transformation
In conclusion, modern corporate payment solutions offer a transformative opportunity for businesses. Overcoming the inertia of tradition, addressing ERP system limitations, and actively facilitating vendor-payor transitions are the keys to unlocking the potential of these solutions. By embracing a modern payments hub and leveraging virtual card payments, businesses can streamline their finances, reduce reliance on checks, and turn their accounts payable department into a profit center.
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