Vendors getting paid by cheque
“The cheque’s in the mail.” Who in accounts receivable hasn’t heard that threadbare line? And why is it uttered so often by clients to vendors seeking to square up accounts? There are a few reasons:
- Clients haven’t actually paid and are buying time.
- Clients are hoping that eventually the vendor will either forget about the invoice, lose track of it or give up on it.
- The cheque is in the postal system—somewhere—but nobody knows exactly where.
- The cheque has been stolen or rendered undeliverable by some sort of calamity.
The takeaway is that vendors getting paid by cheque often run a gauntlet of explanations as to why it’s not happening to their satisfaction. On top of that, when a vendor does receive a paper cheque, it requires tedious data entry and clunky reconciliation. There is no benefit of accounting system integration when it comes to handling paper. This all takes time, costs money and potentially allows human error to creep into the picture.
Vendors getting paid by SparcPay
Fortunately, there’s a way for vendors to avoid hearing, “The cheques in the mail”: register to get paid by their clients via SparcPay, the app loved by all suppliers! And here’s why.
Fast payment of accounts receivable
When a customer pays a vendor using SparcPay, the vendor receives the payment electronically and simultaneously receives a remittance email with full payment details for easy reconciliation. With SparcPay, vendors know who sent what, when and where! Suppliers no longer needs to stress about a cheque being lost, delayed in the system or stolen. Instead, they can bask in the knowledge that they’ve received their money almost friction free and that they’re a model of efficiency! Replacing paper cheques with SparcPay allows Accounts Receivable departments to benefit from reduced friction and can get on with pursuing higher priorities.
Secure payment of accounts receivable
Apart from the speed of a SparcPay transaction, vendors also love the security. As noted above, cheques are far from secure. And the truth is, e-transfers are also not totally secure because they are sent to an email address and can, therefore, be intercepted and diverted from the intended receiver. Furthermore, e-transfers are also subject to daily limits and amount limits, which in B2B transactions can easily become a problem for vendor and customer alike. On top of this, e-transfers require the manual processing and subsequent recording of the transaction in the accounting system. The fact is, e-transfers are not nearly as fast, secure and friction free as many might think, especially relative to SparcPay.
The SparcPay network
Here’s another reason vendors love SparcPay. Any vendor that is registered with SparcPay can be paid electronically by ANY SparcPay client. By being part of the SparcPay network, a vendor greatly increases the number of electronic payments they receive, allowing them to receive more payments faster, ramping up efficiencies in their accounting processes. Vendors love getting paid by their customers via SparcPay so much that they often end up trying to convince more of their own clients to sign up for SparcPay. One of the common ways vendors do this is to incorporate notices into their own invoices pitching clients on the idea. Many vendors who experience the benefit of having their accounts receivable settled by SparcPay end up signing up for SparcPay’s accounts payable solution themselves!
Click here to engage with the friendly folks at SparcPay to learn more about the multiple advantages that vendors derive from SparcPay. It just might be the best thing you’ve done for your business in quite some time.