As a B2B wholesaler, you strive to deliver the quality and service that will make your customers want to return. Since your ideal customer is a regular one, shouldn't you have a payment system that mirrors that relationship? Recurring payments give wholesalers the chance to completely automate collections for repeat orders, streamlining the payment process for both you and your most loyal customers.
Oftentimes, however, B2B companies can be resistant to change, as they fear they might alienate customers who have always done business a certain way. Luckily, implementing a recurring payment system will not disrupt any of your existing business, but can help improve your relationship with new customers. Even still, some older accounts may in fact thank you for offering them a simpler way of doing business.
Here's how adding recurring payments to your strategy can benefit both you and your customers:
"You can rely on recurring payments to be regular and on-time."
Improved cash flow
In a recurring payment model, funds are automatically transferred to your merchant account from your customers every billing period, whether it be every week, month, quarter, etc. Because the transactions are automated, you can rely on payments to be regular and on-time, affording you the flexibility that comes with knowing cash flow won't hold you back. For your customers, the reliability and ease of regular automatic payments will make it easier to budget and manage their resources.
With payments automatically coming in when they're due, the burden on your AR department will lighten considerably, eliminating the scrambles that come with late or inaccurate payments. Plus, your customers will enjoy the convenience of eliminating steps along their AP process as well. Who wouldn't opt for a strategy that could simultaneously reduce operating costs and frustration?
Similar to the way credit cards remove the pain of parting with cash, automatically recurring payments distance buyers even further from the reality of their spend. Because they simply don't have to think or plan to make new purchases with you, customers are far less likely to forget or suddenly decide to terminate. Over the course of a longer relationship, you not only have the opportunity to make more money, but you also get the chance to prove to your customers just why your company is worthy of their loyalty.