Commercial Cards Present Firms Working Capital Certainty In Uncertain Times
Business interest in alternative finance resolutions is growing at about the same rate as interest rates.
Because of the constantly changing economic conditions and persistent operational unpredictability, businesses are looking for new ways to overcome these macro problems.
Virtual cards are one procedure that is gaining popularity in the B2B sector. As the use of commercial cards grows in B2B, the inherent complexity, personalization, and subtleties of B2B transactions can make it difficult for organizations to understand the benefits of commercial cards properly.
According to David Bork, head of AR solutions at Boost Payment Solutions, “working capital is very important in shifting and uncertain economic times… and businesses are increasingly looking at opportunities to utilise commercial cards in a meaningful way.”
“Having a facility for virtual card acceptance can be very powerful. It can be deployed in a widespread manner. It can be very surgically deployed. It can be deployed with different rates,” Bork stated
He noted that besides providing communities with greater flexibility and clarity around their operating Capital necessities, virtual cards offer a way to confirm correct payment to suppliers while lowering the risk of scams compared to traditional methods such as paper checks and ACH.
“There’s less fraud in virtual cards. The numbers are something like 40% for ACH attempted or actual fraud, and for virtual cards, it’s around 3%,” Bork added.
And, as organizations become increasingly concerned about the future, eliminating any low-hanging exposures to dishonest behavior should be the first step towards planning for a more efficient and safe future.
Simplifying Transactions And Improving Security
Bork stated that financial institutions are driving the use of virtual cards by collaborating with businesses to create efficient and secure payment solutions that enable effective and efficient working capital management.
“Suppliers that might be struggling with cash flow for any particular reason, the acceptance of a virtual card can help even things out. You can get paid a lot quicker with a virtual card because, of course, the cardholder is getting working capital from their bank. So that’s an advantage to both sides,” Bork said.
He said that brilliant suppliers are even utilizing virtual cards to help them gain new business.
“We’re starting to see it more and more where that’s becoming part of the RFP process. Some of the more shrewd organizations out there are realizing that, all things being equal against a competitor, they are willing to accept a card payment versus someone who is dead set on only accepting ACH,” Bork said.
Businesses with less access to cash are less likely to see income growth in an economically unstable environment, and using virtual cards to meet financing needs can better position firms for change as long as they carefully consider the pros and cons of each available approach.
“There’s big opportunities for companies on both sides of the ledger to be able to do some things that will make sense to protect against these shifting macroeconomic times,” Bork said.
Reviewing commercial credit cards and welcoming virtual alternatives may be a good strategy for firms wanting to instruct these difficult times as the economic environment evolves.
Time Saved Is Money Earned With B2B Payments?
Future-fit virtual solutions are appearing to support businesses in capturing favorable tailwinds despite the difficulties of today’s working environment.
“The reality is that most suppliers that accept don’t realize that there is a better way to do things,” Bork said.“Things seem crazy, and you need to be prepared for them. And Boost is at the forefront of helping our partners do these things in a very unique way. Our solutions are purpose-built for B2B — whether you’re a buyer, or a supplier.”
He noted that what appears lovely on the customer side is only sometimes so on the provider side.
“Virtual cards are bridging that gap between buyers and suppliers by enabling them to do commerce in a way that makes sense, and giving them this secure, value-add payment type that they may not have had access to before,” Bork said.
Investing in future-proof B2B workflows today secures long-term success and overall growth, regardless of the organization’s ledger side. Secure your future and illuminate new opportunities.
