Main functions of the B2B payment platform

shuklarani41423

A Business-to-Business (B2B) payment is any financial transaction that occurs between two organizations or companies, rather than transactions involving an individual.

What do modern B2B payment platforms include?
B2B transactions typically involve more complex terms than a simple upfront payment (wire transfer, online card, or cash), with most B2B deals involving some sort of credit extension that requires payment 30, 60, or 90 days before or after delivery of goods or services, depending on the type of contract. And because these outstanding payments flow both into and out of your organization, accurately accounting for these exchanges in your company’s financial statements requires additional effort and typically requires dedicated personnel and specialized software.

An effective B2B payment platform will not be just one application, but a set of tools and software that can handle various financial transactions related to payments, such as accounts receivable ( Accounts Receivable ), accounts payable ( Accounts Payable ), or managing said accounts.

Advanced software solutions can effectively manage the receipt, verification and payment of incoming invoices, as well as send automatic payment reminders to your customers via email.

The most important component of a modern payment platform is integration and centralization. If your various applications can easily communicate not only with each other, but also with the platforms of your merchants, suppliers, and customers, you will be in a much better position to manage the overall financial health of your company.

Here are the B2B payment processing features you should look for when choosing the best B2B payment platform for your business.

8 Features to Look for When Looking for B2B Payment Solutions
1. Different B2B payment methods
The companies you buy from and sell to will have different requirements and expectations for how they exchange funds with your business, from bank transfers to online credit card payments to instant payments and more. An effective platform will offer you the ability to accommodate a wide range of B2B payment types, including but not limited to:

Wire Transfers​
Payment by bank cards online
Virtual cards
Fintech platforms (e.g. PayPal , Skrill , Square )
Cryptocurrency
Paper checks (eg in the US)
Cash
Instant payments, in Moldova in the future
Depending on the size and future direction of your business, you may also want to check whether the software you choose supports international transactions and currency conversion.

2. Automated B2B workflows
By automating your accounts receivable and accounts payable collection processes, your business can avoid unnecessary delays in your workflow and keep payments flowing even when your employees are not in the office. Automation also helps reduce the likelihood of fraud or unintentional errors that can disrupt your financial operations and cost your business money.

Additionally, depending on your platform's capabilities, you can reduce overall paper usage by collecting relevant data through software integration or scanning incoming documentation using Optical Character Recognition (OCR) technology.

For more information, check out our resources on how to automate accounts receivable collections and how to automate accounts payable accounting .

3. B2B reporting functions
Audits are a must. Whether you are complying with government or industry reporting standards or simply trying to improve the efficiency of your business, having comprehensive tracking and analytics capabilities is a must for your financial systems.

If possible, choose a solution with accounts receivable and accounts payable analytics capabilities that provide out-of-the-box reports not only with high-level metrics, but also with the ability to create ad hoc reports focused on any other details that can help identify bottlenecks or validate recent process improvements.

4. Real-time B2B reconciliation
Beyond general reporting, you’ll need a B2B payment platform that can integrate directly with your accounting system. Accurately reconciling incoming and outgoing payments with the corresponding accounting and journal entries can mean the difference between accurately understanding your financial health and making poor decisions that hurt your cash flow. The right solution will handle these basic accounting tasks in near real-time or empower decision makers to make smart decisions when it comes to your organization’s financial future.

Find out more: how to automate the approval of the reconciliation procedure.

5. B2B Credit Management Tools
If you don't operate on a pay-as-you-go basis, you'll likely provide lines on page seo service of credit to your customers, allowing them to complete payment after the related goods or services are delivered. But determining the amount of credit to extend to an individual customer can be tricky.



Choose a payment platform that allows your staff to easily track payment history, purchasing trends, and the overall credit score of each of your customers.

6. Functionality for B2B portals
Incorporating self-service features into your payment processes not only takes routine responsibilities off your internal staff, but is also likely to improve the overall satisfaction of your suppliers and customers. An externally facing portal, whether it’s for processing electronic invoices or accepting online payments, allows external users to track the status and view details of any transactions that are in progress. And they can access this information without the time delay it would take to call one of your staff or respond to an email.