Simple B2B Invoice Payments
B2B or business to business invoices are the records of transactions from one company to another. One of their benefits is that they can improve the cash flow of a business. These are advanced payments ahead of an invoice being paid. They are made as an insurance against the eventual payment of invoices in order to free up cash for more urgent needs.
Features and Benefits
- The proportion of B2B sales made on credit in the UK sits at around 56%
- Currently, the number of days being allowed on average to pay B2B invoices is 20.
- Action is being taken to reduce late B2B invoice payments.
- 52% of invoice payments are made via bank transfer.
What are the Advantages?
Having to wait as a business for an invoice to come in can be crushing. You have to rely on a business to pay on time and that means a strong line of communication. Even if invoices are paid on time, unexpected bills or costs can crop up at any time. If you don’t have some kind of alternative for taking in cash in the short-term, you may be left in a difficult spot.
What invoices payments mean for your business is flexibility. You know that you aren’t confined to receiving a payment when, or after, it’s due. You can expand your plans knowing that you have the option of when to get the money you’re owed. It’s also more convenient for customers and means you can reduce the impact of payments that are not successfully credited and they and you retain your Consumer Rights.