How do businesses normally pay other businesses?

[jnogoods]

Do businesses that are paying another business for a service normally pay by just BACS? What about cheqye?

Is it unprofessional to have an option online where they can pay by card or paypal? I always got the impression that this is more for customer sales.

Thanks
Jonny

 

[Andrew @ PLA]

It usually depends on how the supplier asks to be paid ... the quickest and cheapest method is online banking (not to be confused with BACS), that is how I asked to be paid but each to their own.

 

[Kernowman]

Businesses generally pay each other by cheque, sometimes they do a BACS transfer.

If you asked a business to pay you by paypal, don't be surprised if you get a negative response, because those transactions are generally from the public.

 

[gemd89]

I pay B2B by BACS always!

Gemma

 

[seanstevens]

"How do businesses normally pay other businesses?"

Slowly!!


The more methods you have available the better.

 

[chrisbarnes86]

I always pay by BACS as it is easier and I know when it leaves the account which helps me monitor my cash flow. My customers pay with either cheque or BACS. I would prefer it all to come BACS.

The only time I would send a cheque is if putting a job through a new supplier and they ask for payment up front for the first job.

 

[smo]

BACS transfer 99% of the time, we only ever pay by other methods (such as company C-Card when we've not delt with them and they want payment up front for the sirst order).

 

[J-Wholesale]

There is nothing unusual about insisting on credit card payments. We do, unless there are exceptional circumstances - customer in Africa, for example. No offence to Nigerians.

It really depends on the business. If you're selling physical goods that need to be shipped, a business customer is not really any different to a non business customer. For most customers, waiting for a cheque to arrive and then clear before their goods even ship would be unacceptable, and shipping without cleared payment is not something we're even remotely interested in.

Order a PC online, stationary, Google advertising, pretty much anything - there'll be a credit card payment option, business or not. This is a forum for businesses. How did all you paid up members pay your yearly bill? BACS? Cheque? Or plastic?

 

[akirk]

BACS / SWIFT / PayPal / CC / Cash / chocolate cake (not worked out how we split out the VAT element on that one )

Alasdair

 

[Stephen Berry]

I haven't written a cheque for about 5 years - everything is on-line banking.
About 2 years ago a customer paid by cheque - I thought "how quaint, a remnant from Victorian England".
I pay and am paid direct through on-line banking and have been for some time. I am amazed that there are still some who are not.

 

[Lewy_T]

I haven't written a cheque for about 5 years - everything is on-line banking.
About 2 years ago a customer paid by cheque - I thought "how quaint, a remnant from Victorian England".
I pay and am paid direct through on-line banking and have been for some time. I am amazed that there are still some who are not.

I would second this, can't even remember where the cheque book is!

Online payments all the way IMO. Just be careful when you pay by this method that it's 100% that you want to pay it as there's no recall as far as I'm aware.

 

[akirk]

We get lots of cheques... Why not? Some people like them, depends also on the type of business...

Alasdair

 

[easiprint]

We pay all our suppliers by online banking because it is just easier that way. I have had one supplier however say "why can't you just send a cheque like everyone else?" :|

Payment from our customers usually comes by cheque, with a few online banking ones thrown in. I have suggested that we prefer online payments to our customers, but most prefer cheques still. A lot of our customers however are 'committee based', so require two sigs to make a payment, so cheques are preferred by them. We do also offer PayPal via our website as we deal with one man bands a lot too who seem to like this option.

I think as many options as possible is the best way personally.

 

[Deleted member 59730]

Most days I get at least one cheque. Some days I'll get 20 or more if I've just sent out a load of statements.

BACS is the most time consuming and costs much more because of the of customers lack of using their account ref number when making a BACS payment.

 

[smo]

Most days I get at least one cheque. Some days I'll get 20 or more if I've just sent out a load of statements.

BACS is the most time consuming and costs much more because of the of customers lack of using their account ref number when making a BACS payment.

At least you dont get charged for sending/receiving BACS payments!!!

Most business accounts charge for cheques.

 

[easiprint]

Most frustrating thing about cheques is having to actually go to the bank during office hours to pay them in. It's the only reason I have to visit my branch these days. But money is money....

 

[Deleted member 59730]

At least you dont get charged for sending/receiving BACS payments!!!

Most business accounts charge for cheques.

If you think paying someone £9 per hour to track down who sent BACS payments is free I don't. I have about 2 a month which need a lot of effort to reconcile.

We can also reconcile about 100 cheque payments in the time it takes to reconcile half a dozen BACS because we pay in 20 or 30 cheques in one transaction and every BACS is a separate statement line.

 

[Deleted member 59730]

Most frustrating thing about cheques is having to actually go to the bank during office hours to pay them in. It's the only reason I have to visit my branch these days. But money is money....

We send ours by post. No queuing. I can make it to the nearest postbox in less than 100 yards.

 

[smo]

BACS payments are eacy to trace....it says on the online banking who the payment is from!!

As for cheques, they go in the post, 1st class, totally free in envelopes provided by the bank

 

[jnogoods]

Thanks for the replies.

I am starting a business that is selling advertising space in a directory and am wondering whether to put a page on the site where they can buy with credit card? I am expecting customers to be small/medium sized business...

Do you think they would prefer to use credit card if they have never paid me before and if I ask for the money upfront? (Although I am thinking that I will ask for a deposit and have a contract saying they must pay the rest if the directories are printed witout any problems)

Thanks
Jonny

 

[GemmaC]

Is the directory online? If so, it'll be strange not to go down the online payment route imo.

 

[E Storey]

Bacs should be fine if it is business customers that are paying... they should know to put their name/reference number on the transfer and the money clears your account quicker than a cheque.

Paying money out, again paying by cheque slows payments down a bit if you have poor cash flow, but makes it hard to track how much money you actually have available to you! Some people don't cash cheques for ages!

If your likely to forget about a cheque and go overdrawn, then just pay by bank transfer, it's not worth the £30s fees.

 

[deniser]

We choose according to what payment methods are on offer in the following order:
1. credit card - advantages to us that it gives us extra time to pay, airmiles on the card, security if paying upfront - but also accepted by many suppliers after issue of invoice and delivery of goods
2. BACS - same day payment option allows us to delay payment until the due date
3. cheque - my business partner likes sending cheques but I think he is mad
4. paypal - we use this to pay our tiniest suppliers usually by bank transfer so easy to reconcile

We send sterling cheques to out overseas suppliers as well if they don't have a UK bank account or CC facility because we refuse to pay the £25 bank transfer fee.