Top 4 Considerations for Selecting B2B Payment Methods

Global growth has made working with freelancers a great alternative for many rapidly growing companies. Outsourcing the workload helps companies maximize efficiency, reduce overall costs and improve company wide efficiency.

Despite the many benefits to working with freelancers and outsourced suppliers, there are a few hardships companies face – particularly when dealing with paying freelancers and external suppliers overseas. Not only does each freelancer have their own specific payment conditions and requirements, but different countries have different laws and bank processes, making global payment management a tiresome task for payroll.

That is why globally growing companies that work with freelancers and suppliers from overseas need to examine B2B payment methods and find the one that suits them best (even if the freelancer suggests their own method).

TIME IT TAKES TO TRANSFER PAYMENT

Companies that rely on freelancers to supply them with services need to make sure their relationship with their freelancers is always upheld. That is why companies need to seek out B2B payment methods that ensure timely payments of the entire amount.

Failure to make the correct payment in the freelancer’s local currency, or not taking into consideration longer processing times may result in the freelancer or supplier not getting their funds on time. This in turn can lead to a decline in the company-supplier relationship, impacting the work process and delivery of goods or services.

Companies that value their suppliers must therefore seek out B2B payment methods that guarantee payment will be made on time, in the correct currency and for the exact amount.

PAYMENT SECURITY

No one wants to be in a situation where payment was made but the supplier did not receive the funds. This is why companies need to make sure they use a secure B2B payment method when working with international freelancers and vendors.

Paper checks sent via snail mail can easily be caught, and wire transfers are risky due to their popularity among fraudsters who are able to easily circumvent authentication methods and reroute funds into their account.

To ensure that payments made reach the desired destination, it is important to verify payment recipient and use a secure method for electronic payment processing. This is the only way businesses can guarantee that their payed funds will reach their desired suppliers.

FLEXIBLE PAYMENT METHODS

Since freelancers and suppliers have varying payment method preferences, it is important for companies that manage B2B payments, particularly overseas, to find a payment solution that is flexible.

With Payoneer, companies can choose a variety of global payment methods including eCheck, local bank transfer and credit/debit card payment. This means that companies working with freelancers can bypass managing individual payments and manage all freelancer and supplier payments together. Doing so helps companies ensure that their payments are made in the most secure way and that funds arrive quickly and in their entirety. Payoneer also offers waived and reduced fees that often amount to hundreds, if not thousands of saved dollars for businesses.

That is why companies that work with freelancers or global suppliers need to make sure to examine the different payment methods available to them, even of their freelancer or vendor requested a particular B2B payment method.

SEE HOW PAYONEER CAN HELP YOUR BUSINESS STREAMLINE GLOBAL PAYMENTS TO SUPPLIERS