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One of the larger risks in supplier payments is paying those suppliers before customer funds are available. Agencies front cash for bookings, insurers cover claims out of pocket, and ad campaigns stall while finance teams scramble. Supplier payments are supposed to be simple, but delays make them costly and risky.
The good news is that with the right approach, supplier payments can be faster, safer, and far less stressful. Companies that connect incoming and outgoing payments gain immediate access to funds, reduce reliance on credit, and improve relationships with their suppliers.
The Challenge of Supplier Payments
Businesses in travel, advertising, insurance, and beyond often find themselves in the same bind: they need to pay suppliers before customer funds are fully available.
- Travel agencies must pay airlines the moment a booking is made.
- Ad agencies must place media buys quickly after a client funds a campaign.
- Insurers must disburse claim payments fast to preserve trust.
Yet traditional payment processors make these businesses wait days to access funds. Some companies turn to credit to bridge the gap, but that may not always be a viable option . Others rely on manual workarounds, which create errors and slow down teams.
The longer money sits in limbo, the more risk piles up.
Why Delays Increase Risk
Every day of delay creates friction. Businesses cover supplier payments with credit, which leads to higher costs and thinner margins. Finance teams juggle spreadsheets and transfers to patch the gaps, increasing the chance of mistakes. And when processes are spread across disconnected systems, fraud risk rises.
Suppliers feel the effects too. Late or inconsistent payments strain relationships, limit flexibility, and can even cost you access to key partners.
Three Ways to Streamline Supplier Payments Safely
- Connect PayIns and PayOuts
The fastest way to reduce risk is to connect incoming and outgoing payments. When customer funds are available the moment they are received, businesses no longer need to borrow or wait. This keeps cash flow balanced and predictable.
- Use Virtual Cards for Control
Virtual cards give businesses flexibility and security. You can create single-use cards for specific transactions or restrict use by supplier, category, or amount. That level of control reduces fraud and simplifies reconciliation, since every payment can be tracked and matched automatically.
- Automate Reconciliation
Manual reconciliation is one of the most time-consuming parts of supplier payments. By streamlining payment processing, businesses reduce errors and free up staff time. When incoming and outgoing payments are linked, reconciliation becomes a natural part of the payment flow instead of an extra chore.
How ConnexPay Helps
ConnexPay was built to make supplier payments faster and safer. Instead of holding funds, ConnexPay connects PayIns and PayOuts in real time. That means the moment a customer pays you, those funds are available to pay suppliers or issue virtual cards.
ConnexPay clients in travel, advertising, and insurance issue more than 160,000 virtual cards per day. Each card comes with built-in fraud protection and detailed tracking, giving businesses more control with less effort. And because ConnexPay supports same-currency settlement, companies avoid unnecessary FX costs that eat into margins.
Key Takeaways
- Faster supplier payments strengthen relationships and reduce friction.
- Real-time access to funds eliminates the need for credit and cuts risk.
- Virtual cards and automation provide more control while saving staff hours.
Supplier payments do not have to be a source of stress. With the right approach, they can become an advantage for your business.
Learn More:
Book a Demo to see ConnexPay in Action
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