Regardless of the industry's size, whether small, medium, or large, the transportation of goods is a basic need. The trucking companies are the backbone of the supply chain. According to the American Trucking Association, trucks moved 72.6% of the nation's freight by weight in 2021. They are also involved in the supply chain of top 10 commodities and moved these high-value, time-sensitive commodities more than any other mode in 2023.
Despite the trucking companies' importance in transportation, their ability to manage payments is very essential for maintaining a strong supplier relationship. For instance, let us imagine a trucking company – Turbo Trucking, that manages a fleet of trucks that deliver goods across the U.S. You mainly rely upon suppliers and service providers like equipment manufacturers, fuel suppliers, repair shops, and freelance drivers for smooth operations. Each of these suppliers and service providers might need various payment methods for receiving their payments.
For example, if your truck breaks down in the middle of the road, you will need to see a mechanic. For repairing your vehicle, you might need to quickly pay. If you do not have the payment option they need (if they accept only wire transfers or credit cards) and you do not have that option, the payment and repair will be delayed. As you are not able to get your truck repaired on time, this will cause delivery delays, leading to client dissatisfaction affecting your company.
This is where online payment solutions like Zil come to your rescue. You can easily pay your suppliers and service providers with various payment options provided by these platforms. In this blog, let us look into various payment methods through which you can pay online.
What are the different types of payments?
The payment system has evolved significantly from cash, and checks to digital payments. There are many different ways to make payments. These are some of the major payment methods:
-
Mailing Checks:
Mailing your checks was a tedious task as you had to order checks, then fill them out, stuff envelopes, and mail them by visiting a post office. Mailed checks usually took 4-6 business days to reach the recipient which caused frustrations for both sender and receiver.
By using online platforms like Zil, mailing your checks is quite simple. The only thing you need to do is send your check and essential details, they will print and mail checks via USPS or FedEx. These all will take only a few clicks and you can feel stress-free regarding mailing checks.
-
eChecks:
The eChecks are a digital alternative to a regular check. This means eChecks perform the function of a conventional paper check. You can simply send an eCheck via email or text. Businesses prefer this payment option generally because they cost significantly less than paper checks. Usually, printing and issuing a paper check may cost around $4 to $20, and eChecks around $0.30 to $1.50. They also offer more security features like authentication, cryptography, digital signatures, and encryption to protect your funds.
-
ACH Payments:
You can transfer payments electronically across the U.S. with the Automated Clearing House. It is a widely used payment option because of its cost-effectiveness, convenience, security, and fast processing. ACH payments can be used for one-time as well as recurring bill payments. They usually take 2-3 business days to process payments and are managed by NACHA. The sensitive information is encrypted by NACHA, which can result in a secure transaction. With online payment platforms, you can easily do an ACH transfer within a few clicks.
-
Wire Transfers:
Wire transfers are also electronic payments like ACH, but you can send both international and domestic transfers. You can quickly and affordably do a wire transfer with an online payment platform. Wire transfers are the best option to consider when it comes to large transactions especially internationally. You will need special codes like SWIFT or IBAN when it comes to transferring funds internationally and routing and account numbers for domestic transfers.
-
Virtual Cards:
Virtual cards are a great option to pay your service providers as payments are transforming to digital. Physical cards are always exposed to security risks because they usually get lost or stolen. This can lead to financial losses. The virtual cards work just like a physical card but decrease the risk of getting lost or stolen as it is online. Payment platforms such as Zil provide multiple virtual cards with a single account. This helps you to have control over your budget.
What are the 4 Benefits of Having Different Payment Options for a Trucking Company?
There are several benefits a trucking company can get when using an online payment platform like Zil, for different payment options. These include:
-
Builds Trust and Relationship between Suppliers:
Different suppliers such as equipment manufacturers, fuel suppliers, or repair shops may prefer different payment methods. For example, some prefer ACH, others may prefer checks or others insist on wire transfer. This can completely depend on the suppliers. When you have multiple payment options, you can pay your suppliers timely without any delays. This can build a good relationship between your suppliers and the company.
-
Efficient Business Operation:
A trucking company's financial department might find it difficult to carry out its different financial needs. For large transactions like equipment purchases, vendors might need wire transfers, and for small transactions like daily fuel purchases might require card payments. If they have an online payment platform with different payment options all these transactions will be easy, which enhances their business operations.
-
Easy Cost Management:
Having an online payment platform for different payments helps in significant cost savings. This is because you can use a convenient payment method according to your needs and avoid unnecessary expenses.
-
Good Cash Flow Management:
With the multiple payment options, you can choose the best one from the payment platform for easily managing your cash flow. If one payment method fails, you can use the other to ensure a smooth cash flow.
The Conclusion:
-
Trucking companies can easily manage their payments to suppliers and service providers by using online payment platforms like Zil.
-
These platforms provide multiple payment options like ACH, wire transfer, check mailing, virtual cards, etc for different payment needs.
-
These companies can benefit from having multiple payment options from one single platform.
-
By having different payment options, these companies can build good relationships with suppliers, enhance their business operations, improve the cash flow, and easily manage costs.