When is the right time to roll out an online payments portal?

Many wholesalers or distributors struggle with when to implement an online payments portal for accounts receivable (A/R). Some distributors believe they are too small and don’t have enough A/R to justify spending money on one. Others don’t want to burden their customers with logins and passwords. As we move into an ever increasing technological world, payment portals are shifting from becoming a “nice to have” to a “need to have”.

So, when is the right time to make the decision to move from your traditional accounts receivables methods to a more modern payment system? Below are some signs of when it may be time to start thinking about making the switch.

1. Customers requesting online payments

We’ve all heard that customers are always right and when it comes to how they want to hand you money, that sentiment has never been truer. Traditionally wholesalers offer a range of payment methods from paper check to credit card and at times ACH. But when your customers are asking to pay you in a specific way for ease and convenience, it’s up to your company to adapt to their needs.

2. You feel your process is too manual

When processes in any business get too manual, they take away time spent on more important tasks. For example, if you work in A/R and you’re getting bombarded with calls about invoice copies or statement balances, then it may be time to switch over to a portal that allows your customers to view and download these files for themselves. The same goes for credit card numbers. Why should you need to take down credit card information when it would be much faster, easier, and more secure for your customer to input their information themselves.

3. Competitors implement a payment portal

If your competitors are implementing a payment portal, you may want to consider one as well. Just like if they were offering a new product or service, you wouldn’t want your business to fall behind. You don’t want to lose customers due to your competitors being easier to work with.

4. Business is outgrowing your manual process

Most businesses have the goal of growing their business year after year. If your business is growing, then that means more AR work. That means more calls for invoice copies, more calls for credit card numbers, more calls for routing information, more calls, more calls… Sooner than later the business will be overwhelmed and looking to improve their processes. A simple fix is a self service payment portal that’ll cut down on the manual work and free your time up for other tasks.

5. Customers miss payments because they can’t reach your team

In today’s digital world, people want to pay when it’s convenient for them, and sometimes that means when you're not in the office, on weeknights, or weekends. A payments portal allows your customers to view and pay invoices 7 days a week, 24 hours a day. If they have a question and can’t reach your team, they won’t need to wait another day until your team can call them back. If your voicemail box is filled everyday with questions, now might be a good time to consider a payment portal.

6. Cash Flow Problems

Cash Flow is the lifeblood of any business. When a paper check is sent for payment, that check can take anywhere from days to weeks until it hits your back account. Meanwhile your cash flow grows weaker and your liquidity to pay for things such as payroll or inventory dwindles. If your customers pay you primarily by paper check and your cash flow is slowing, then it may be time to look at payment portals.

These are just some of the examples of when your business should start looking into implementing a payments portal. If you need help with the process, look no further than Dill. You can schedule a free consultation here.