Geraldine Cruz, Senior Director, Product Marketing
Whether you’re a small, midsize, or large business, replacing check payments with electronic payments (ACH) will save you significant labor, operating, and transaction costs. But convincing your vendors to accept electronic payments can be challenging. Comfort with the tried-and-true and/or fear of change can make them cling to checks.
Vendors may be more willing to change if you explain how ACH will help them with their business needs and payment concerns. This blog post is the first in a two-part series that helps you influence your vendors to migrate to ACH. It provides sample dialogue to help you:
- Communicate how ACH tackles the top concerns vendors have with customer payments — and the additional benefits of getting ACH payments from Bill.com
- Respond to typical vendor objections to ACH
Regardless of whether you are a Bill.com customer or not, this blog will help you draft dialogue to use with vendors.
Once you finalize the key points you want to convey, you can approach vendors. But the process to engage and convert vendors to ACH can be daunting and time-consuming. Part II of this blog series will show you how to automate and simplify this process with tools available in Bill.com.
Note: Many major vendors, such as AT&T, Comcast, and Verizon, already accept electronic payments through Bill.com. So the tips presented in these two blog posts are relevant for influencing vendors that are not in the existing Bill.com vendor directory.
How Electronic Payments Tackle Vendor Payment Concerns
To effectively influence anyone or any business to accept change, it helps to understand how the change could help them solve some of their major problems or concerns. Table 1 below highlights the top concerns vendors have with their receivables process and with customer payments.
Find the key issue(s) your vendor has expressed and use the benefits presented to start a dialogue or email communication with them about ACH. If you use Bill.com to pay bills, consider the additional benefits delivered by our service to further boost your recommendation.
Table 1. How Electronic Payments Resolves Critical Vendor Payment Concerns
It is always best to tailor the benefits of ACH to what is most important to your vendors. But not all your vendor relationships are close enough to know exactly what concerns them. In those cases, you can summarize the key benefits of ACH with the following:
“Electronic payments help you get paid faster, eliminate trips to the bank to deposit checks, and prevent check theft.”
The Bill.com service I use will also notify you when I’ve paid you, what invoices I am paying, and the exact date the funds will be available in your bank account.”
How to Address Typical Vendor Objections to Electronic Payments
Despite learning about the benefits of ACH, vendors may have lingering doubts. Table 2 presents some of the objections you may hear and a suggested response.
Table 2. Addressing Typical Vendor Objections to Electronic Payments
If your vendors have further general or technical questions about ACH or the Bill.com service, you can direct them to reach out to Bill.com. Our contact information is available in their check stubs.
With this blog post, you have practical talking or email points you can use with vendors to influence them to accept electronic payments. In the next blog post in this series, we will show you how to use the tools in Bill.com to automate communication with vendors. The tips provided will be useful if you have one or many vendors to influence.
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