Relationships are an essential part of successful business management. Trust and collaboration between suppliers, distributors, and retailers keep the three-tier system of alcohol thriving, and the best way to establish that trust is with reliable, on-time payments for goods and services. Electronic Funds Transfer (EFT) payment offers a seamless method of making payments faster with automation. EFT payment for alcohol invoices greatly reduces the odds of late payments, short payments, and overpayments, improving relationships between distributors, suppliers, and retailers along the way.
What is EFT?
EFT is used to move money from one account to another electronically. The term doesn’t refer to a specific type of payment itself but instead functions as more of an umbrella term for electronic payment types like ACH, wires, etc. For B2B alcohol payments, EFT is far superior to cash or paper checks for a number of reasons. EFT’s speed, reliability, and safety help businesses keep things flowing with accounts payable (AP) and accounts receivable (AR) processes.
Pay Vendors On Time, Every Time
In alcohol, businesses can’t get deliveries unless they’re paid on their invoices from the distributor. Cash flow visibility can get a little murky when waiting for checks to clear. Paying with cash or check also presents liability if that payment is lost or stolen. If paying via money order, machines can sometimes go down, leaving business owners scrambling to come up with something for COD (cash-on-delivery) alcohol drop-offs.
Fintech supports EFT payment for alcohol invoices. This automation ensures invoices get paid on time and in compliance with regulations. With Fintech, business owners don’t have to stop what they are doing to write a check, process a money order, or pull cash from their till when an alcohol delivery arrives. They can simply accept the delivery knowing that payment has been issued, and distributors can be reassured they will receive payment without any bottlenecks or hassle.
More Efficient Alcohol Deliveries
Alcohol distributor drivers work to be as efficient as possible with their routes. Deliveries are slowed when drivers have to wait for payments, delaying each additional delivery on the route as customers work through whatever is slowing down the process. Let’s say a business receives two separate beer deliveries with draft trucks (kegs) and package trucks (cases). Why should a manager have to stop and write two separate checks in the middle of their day? With EFT, managers can rapidly settle invoice payments for their kegs and cases without lifting a finger.
For distributor drivers, Fintech allows them to be in and out of each drop-off at a much faster pace. In fact, drivers walking into accounts using Fintech save an average of 15 minutes per delivery. With Fintech’s EFT payments, drivers and business owners can get through deliveries quicker and back to their day. EFT payment for alcohol invoices also demonstrates a commitment to efficiency and reliability, laying a strong foundation for positive vendor relationships.
Reduced Payment Errors
Manual payment methods like cash, checks, and money orders are inherently prone to errors such as discrepancies in amounts or delays in processing. EFT payments mitigate these risks by automating the transfer process, thereby reducing the likelihood of errors associated with manual data entry or handling. For alcohol vendors, accurate and timely payments are essential for sustaining operations and meeting financial obligations. By minimizing payment errors, EFT payments contribute to smoother transactions and foster trust between buyers and vendors.
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Improved Transparency for Better Conversations
Transparency and accountability are integral components of successful vendor relationships. EFT payments offer greater transparency by providing detailed electronic records of transactions, including payment dates, amounts, and recipient information. This transparency enhances trust between buyers and vendors by facilitating clear communication and accountability. It also provides better visibility into current inventory and payment activity to help manage cash flow.
Fintech’s EFT capabilities include specialized reporting tools that provide insight into cost variance, top products, and more. With 15 months of digital invoice history and access to these reporting tools, buyers can have informed conversations with their vendors to identify any pricing discrepancies, request credits, and more.
Enhance Vendor Relationships With EFT Payments
By streamlining transactions, reducing errors, and improving cash flow management, buyers and vendors can maintain positive collaborations for repeat business. EFT payment for alcohol invoices is the clear choice for optimizing AP and AR workflows and remaining compliant with regulatory terms. Best of all, Fintech’s EFT payment capability scales with businesses as they grow, providing continuous support of these developing relationships.
