5 Ways it Pays to Pay Your Vendors on Time
As you’d expect from the company that provides Concur Invoice, we’ve compiled compelling data on the high costs of paper-based invoicing. On average, it costs $23 to process a paper invoice. Automating the process reduces the cost to $3.41, and cuts processing time by up to 75%.
Besides significant savings, centralizing and automating invoice processing also helps to ensure that your company is a punctually-paying customer, which yields other dividends that are too good to ignore, including:
1. Not Leaving money on the table
Automating your AP processes can help ensure that you get the maximum in early- payment discounts, while avoiding late-payment penalties and interest charges.
2. A self-running, positive public relations program
Paying on time is the easiest thing you can do to burnish a positive reputation in your industry and the general business community. Conversely, bad news travels fast, and once the buzz circulates that you have to be chased for payment, potential suppliers and partners will cross the street when they see you coming.
3. The opportunity for VIP service and pricing from your vendors
Consistently paying on-time or early makes you the kind of customer your vendors want to keep, one who is hard to replace, and one who merits priority attention.
4. Preserving your good credit
Habitual late payments can turn up in the worst places, such as your Dun & Bradstreet report, and raise red flags at a time when you’d rather raise cash.
5. Keeping a positive balance in the bank of good will
A major benefit of automating with Concur is greater visibility into cash flow, so you always have a clear picture of your outstanding invoices and other liabilities. But should you ever hit a cash flow speed bump and need your vendors to give you some breathing room, they’ll be far more likely to lend a flexible hand if a late payment is the exception rather than rule.
Plus, you’ll prevent the dreaded “Where’s my money?!” phone call
Concur Invoice gives your suppliers access to a portal where they can easily see their payment status and remittance information. And if they ever feel the need to get your attention by phone, email or skywriter, you can instantly pull up invoices that are automatically matched to purchase orders, and quickly resolve matters— with no paper cuts or bruised relationships.
For even more, get our 10-step guide to an efficient vendor invoice process today