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Is Payment Flexibility Hurting Your Business in Ways You Didn’t Know?
As a business leader, you’re well aware of the importance of payment flexibility in today’s competitive market. Offering customers various payment options can be a game-changer for closing deals and driving revenue. However, it’s crucial to recognize that payment flexibility can also create hidden pitfalls that can hinder your growth.
In-house management of flexible payments might initially seem like an attractive option. You could assume control over underwriting, collections, integrations, and risk management. But, in reality, these are highly complex areas that require specialized expertise and significant time for effective implementation. Financing customers from your own balance sheet can strain resources, while negotiating credit facilities often involves lengthy and intricate processes.
On the other hand, partnering with established providers can offer a streamlined alternative. For instance, Amazon’s collaboration with Affirm to offer buy now, pay later (BNPL) solutions demonstrates how outsourcing can enable a company to focus on its core growth strategies while leveraging a partner’s expertise in payment flexibility. However, partnerships also come with considerations. Relying on third-party providers means ceding some control and may introduce additional costs or dependencies.
In this article, we’ll explore the challenges of managing flexible payments without integrated systems and how it can lead to:
* High-ticket sales or long payment cycles
* Operational complexity in managing flexible payments
* Lack of visibility for deal prioritization
We’ll also discuss potential solutions such as AI-powered payment automation, B2B BNPL partnerships, and effective accounts receivable (AR) strategies.
Source: www.forbes.com
