With “the value of B2B cross-border payments reaching $35 trillion by 2022” shared Juniper Research in 3 Key Trends Revolutionising B2B Payments, high-tech companies continue to be challenged with how to improve and speed the payment process for downstream channels.
“B2B payments have been complex and difficult to manage for many years, with AR/AP (Accounts Receivable & Accounts Payable) processes consuming large resources. B2B payments are fundamentally complicated – invoices have a multitude of different variables, amounts, addresses, payment terms, and so forth” continues Juniper Research.
In most high-tech companies, finance teams carry the responsibility for managing and reconciling payments with channel partners. These critical activities may lack visibility, transparency, and speed to make payments happen consistently and quickly.
While companies have organized payment funding sources in various locations, financials are housed in an ERP requiring finance to bridge the payment process with various spreadsheets or homegrown solutions. Finance teams are stuck in the middle trying to understand who needs to be paid, from what sources, paying under what conditions, while pressured from partner sales and other teams to make this happen efficiently.
With these processes and systems in place, it creates a multitude of new challenges.
In the recent report, The CFO perspective on trade challenges, Euler Hermes found, “Payment delays have accelerated to become an even more significant issue in the current climate. When asking finance leaders in May 2020 which risks had impacted them over the past two months, 65% mentioned payment delays.”
How can high-tech companies overcome complicated channel payment processes?
More and more high-tech companies are pursuing new ways to streamline, automate and improve partner experience, through intelligent and modern payment solutions. Using a channel-focused solution eliminates future impact on partner relationships, retention, and performance while improving time to payment, minimizing resources utilization and decreasing payment fees.
To learn how Model N can solve your channel payment challenges, go here. To speak to a subject matter expert, click here.
