Digitizing cash flow can help save struggling businesses

2021 may just be the year that businesses traverse the last mile for B2B payments. An industry that has historically lagged when it comes to innovation, the pandemic and its fallout have left organizations with no choice but to adapt quickly or risk going under.

With similar pressures persisting in the new year, it’s vital that organizations boost their “digital” cash flows so that they can not only survive and scale, but deliver the convenient experiences that their customers count as extremely valuable.

After all, in these taxing times, businesses will be most successful when all of their various parts are working as efficiently as possible together. Payments are an essential part of that equation, especially now when challenging configurations and debt accumulation threaten to shut doors. Despite these challenges however, there’s no denying that the B2B payments industry is ready to advance its transformation, and there are plenty of reasons to suggest that’s just what it will do.

Despite COVID-19's economic impact, the rapid growth of industries like fintech, health care IT, logistics and e-commerce means almost every brand is under increased pressure to differentiate themselves from new entrants.

As a result, customers’ expectations for high-quality buying experiences have risen dramatically — a trend that is not only impacting brands in the consumer space, but those in B2B too.

Yet, B2Bs have struggled mightily to meet these demands. Research from McKinsey found that 65% of B2B customers don’t think their experiences with other businesses match their experiences with consumer companies. Of course this is a worrying trend, but it also represents a tremendous opportunity for B2B companies to capitalize on what is set to be a crucial component of their business strategy in 2021. One might even suggest that it’s more important for B2B operators and especially AR and collections teams, as COVID-19 increases stress and anxiety among workforces and therefore increases the need for an empathetic customer approach.

For example, with many companies extending their work-from-home policies through 2021, suppliers are turning to connector technology to reach AP teams where they live. Of course, lockdown restrictions over the past year have prevented teams from going into their office or to the bank, a problem that has threatened to significantly slow down cash flow in an already insolvent landscape. But it has opened up a significant opportunity for suppliers to boost their client relationships and deliver unmatched customer experiences as they make life easier for buyers at a time when much of their work lives has been turned upside down.

When AP teams use software to automate the payment of invoices, for instance, AR can then use connector tech to help their accounting package “speak” directly to the AP side. No behavioral change is needed on the buyer’s side, and it streamlines payments for them. Additionally, it helps buyers replenish their credit lines faster and as a result, enables them to buy more and buy faster.