How digital payments can transform how companies manage working capital

Wherever a business sits in a supply chain, maintaining a healthy flow of payments in and out is critical. Getting suppliers paid on time, or even paid early, promotes efficiencies, satisfaction, and confidence along the entire network of companies involved in providing a product or service.

In contrast, late payments damage trust and efficiency. For companies that require cash to proceed with delivery of products or services, it creates productivity bottlenecks. Longer term, it holds companies back from being able to plan and scale.  

“Digital payments are a key tool in preventing late payments. They provide two things which are often missing in the payments chain – transparency and data. A digital, trackable payments process allows suppliers to know exactly when and how they can expect to get paid,” Ian Hill, Director of Product Management – Virtual Cards at payments technology platform Taulia, says.

This certainty allows these businesses to pay their own suppliers downstream, settle taxes, produce accurate accounts, take on new orders, commit to purchases, and make plans – all critical to remaining solvent and in growth.