Covid-19 has changed the way many businesses operate. In the last 18 months the food distribution industry has changed dramatically. The way distributors worked pre-pandemic to the way they work now is a whole lot different.
One area that has changed more than most is the way distribution business receive payments. Pre-Covid, many distribution businesses were contempt with the traditional cash and eftpos payment process; however, it is a different story today.
In 2021 many distributors have transitioned to automatic credit card payments.
So, what is driving the transition to automatic credit card payments?
When it comes to making a change to a process, the food distribution industry lags compared to other industries. For a long time, many distributors had the belief of if it’s not broke don’t fix it. But in the current market that simply doesn’t cut it.
One of the biggest reasons why distribution businesses are transitioning to credit card payments is due to the long wait times of traditional payments. It has been reported that the food industry waits 28 days on average for an invoice to be paid. Distributors simply can’t afford that wait time anymore.
For food vendors and distributors, EasyVend provides you with a completely automated payment solution from invoicing to receipting.
In EasyVend the following processes are automated:
- Customer invoices are generated and sent automatically at the correct interval
- The payment is taken automatically at the agreed time
- The payment is automatically allocated and receipted to the correct invoice
- Complex discounts, rebate structures, multiple price levels and price adjustments.
EasyVend Web ensures you get paid on time, every time.
But did you know, there are even more benefits that automated credit card payments have for your business?
Let’s take a look at them:
How long do you spend chasing payments from customers? What about the time spent manually allocating cash, cheque, or EFTPOS payments to different invoices? These tasks aren’t fun, they waste time and create errors.
The benefit of automatic credit card payments is payments are automatically taken at the correct time and allocated to the correct invoice automatically. This gives you so much more time to focus on the other important parts of your business.
One of the biggest frustrations in any business is learning a payment is fraudulent. Credit cards offer the ultimate fraud protection service - that cannot be replicated by traditional payment methods.
With customer transactions going through a Payment Gateway software, the system automatically audits requests upon submission. It then verifies card validation, address verification and all other requirements needed to be approved – reducing your risk of fraudulent transactions.
Quick payment processing
When it comes to payment processing, credit card transactions are second to none. It can be annoying waiting for a payment to hit your account. Traditional payment methods can make 3-5 days on average before payment is received. If your business is in a tight cashflow situation it could severely impact your operations.
On the flip side an automatic credit card payment system processes funds into your account within one business day on average. The quicker payment hits your account the better your business will be.
Centralised payment system
You can see all incoming and outgoing payments on one credit card statement. This makes it so much easier for your record keeping and bookkeeping.
A centralised system will save your bookkeep time – ultimately lowering your fees. An added benefit of using a is you can integrate your credit card payments with Xero – meaning payments will link instantly upon submission!
For food vendors and distributors, EasyVend supports and automates every part of your business, freeing you up to grow your sales unlike other ERP systems that are designed more for wholesale suppliers than for distribution businesses like yours.
EasyVend can help you with a raft of customised solutions to give your business the competitive edge it needs. For a free no-obligation demo of EasyVend contact us today on 1300 473 744 or submit the form below.