Why would you undergo a supplier analysis?

A thorough supplier analysis will help you identify which suppliers are already accepting virtual cards. You can then take that information when making decisions on new suppliers or to determine which suppliers will more easily accept your own virtual cards, allowing you to take advantage of this payment type’s many perks, such as enhanced security, streamlined reconciliation, and improved cash flow. A supplier analysis enables you to identify potential issues, tailor communication strategies, and provide the necessary support to ease the transition to virtual card payments.

Want to get more suppliers on board with virtual cards?

The gives you practical tools to drive adoption and build stronger vendor relationships.

What are suppliers’ concerns about virtual cards?

Suppliers may harbor legitimate concerns that discourage the acceptance of virtual cards. Although every supplier is different, common concerns are:

• Upfront costs are expensive: Many suppliers worry about the operational expenses associated with implementing virtual card payments. The perceived complexity and potential disruption to existing processes can make them hesitant to invest time and resources. 
• Onboarding costs are high: The onboarding process for virtual cards may be perceived as time-consuming and operationally expensive. Suppliers may be concerned about the effort required to integrate this new payment method into their existing systems. 
• The process is complicated: Fear of complexity often holds suppliers back. They may be hesitant to navigate what they perceive as a complicated process for receiving virtual card payments.
• Fear of job loss: Suppliers may worry that embracing virtual cards could lead to job losses, particularly if they believe that automation through virtual card payments may replace human roles. It’s crucial to communicate that the goal is empowering your employees to work smarter, build scalability to grow your business, and free them up to focus on more important tasks that can’t be automated.
• Is this a scam?: In the age of increasing cyber threats, suppliers may question the legitimacy and security of virtual card transactions. Addressing these concerns through education and transparency is vital.

How do suppliers benefit from virtual cards? 

Suppliers experience the benefits of virtual cards, too. These perks (which are expanded upon in this blog post) include: 

• Saving money
• Reducing fraud
• Faster processing
• And more!

What does a supplier analysis look like? 

A comprehensive supplier analysis involves evaluating each supplier you are considering. The process includes open communication, collaboration, and understanding the unique aspects of each supplier’s business. Here’s a simplified breakdown of what a supplier analysis might involve:

• Analyzing vendor list: Prioritize suppliers based on strategic importance and transaction frequency.
• Implementation and collateral review: Tailor solutions based on the specific needs and concerns of individual suppliers to ensure a smooth transition to virtual card payments.
• Communication: Open a dialogue with suppliers to understand their current payment processes, pain points, and willingness to explore virtual card options.
• Work with suppliers: Begin calling suppliers and weighing your options before making a final decision. 

What’s one example of a supplier analysis?

Choosing an ideal virtual card vendor involves a five-step approach: 

1. Select your virtual card provider: Evaluate each provider’s tools, technology, and flexibility. A key criterion is finding a provider with a quick-to-implement, secure, and flexible system. 
2. Pre-opportunity analysis: Collaborate with your chosen payments technology partner to conduct an opportunity analysis. Present opportunity, size, initial target suppliers, and potential spend. It’s also a good rule of thumb to match suppliers for acceptance history via card networks. 
3. Contract and approval: After confirming the opportunity and deciding to transition, the next step involves contract and credit approval. 
4. Implementation and supplier enrollment: Upon securing a contract, validate suppliers for the virtual payments program. Follow up on supplier emails and continue email correspondence to grow your relationship. 

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• 2025 payment trends
• Accounts payables: Terms you need to know

The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax, and investment advisers.

The post Why supplier analysis matters for better payment performance appeared first on ÑÇÖÞÉ«°É..

Now that you’re at the supplier onboarding stage, what should you expect from your payments provider and this process? We break it down in the final blog post of our three-part series on supplier enablement. 

Check out our posts on supplier enablement and supplier analysis. 

What is supplier onboarding?

Supplier onboarding is the process of bringing on a supplier’s accounts receivable team to process payments from a buyer. The supplier onboarding process begins once a supplier has agreed to accept a new form of payment. 

Why is supplier onboarding important? 

Payment acceptance is a critical factor when buying decisions are made. When suppliers don’t accept a certain form of payment, that comes at a cost to you in many ways, including that you may: 

• Choose to buy from another supplier that does accept your preferred form of payment, even if that supplier is charging higher costs. 
• Get the supplier to accept a certain form of payment, but at an additional cost to you.
• Miss out on the ability to generate rebate revenue by purchasing with virtual cards and instead choose a form of payment that lacks rebates or increases your risk of fraud. 

What effective supplier onboarding can do for you?

Plain and simple, you can buy from more suppliers using the payment methods you prefer. And if we’re talking about virtual cards, that means: 

• Optimized cash flow due to faster payments.
• Reduced fees by reducing the potential for late payments.
• Improved supplier relationships.
• Reduce the risk of fraud.
• And many more perks with virtual cards!

What should you expect from your payment provider?

The buyer-supplier relationship is vitally important to your business. To effectively onboard suppliers, that relationship needs to remain top of mind. In onboarding suppliers to virtual cards, your payments provider should: 

• Work in lockstep with you on determining via a supplier analysis which suppliers are most likely to accept virtual cards. 
• Take on much of the work on the supplier’s behalf, because time lost to onboarding is one of their biggest concerns when accepting a new payment method. 
• Help you negotiate with suppliers to ensure mutual profitability. 
• Have experience partnering with you to enable you to pay the new suppliers quickly within your ERP (enterprise resource planning). 
• Provide ongoing support and attention to your account after the suppliers are onboarded to ensure you get the desired results.

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• 2025 payment trends
• Accounts payables: Terms you need to know

The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax, and investment advisers.

The post What you should expect for supplier onboarding appeared first on ÑÇÖÞÉ«°É..