- THE MAGAZINE
Companies today can develop global business opportunities and increase market share like never before thanks to the Internet, favorable trade regulations and globalization. But, there one area remains a stumbling block for most companies: finding a fast and easy way to conduct business transactions.
Business commerce networks have emerged over the past few years to address this issue. They facilitate commerce by expediting electronic invoicing and e-ordering, so companies can easily connect with their trading partners all over the world.
Hundreds of these networks have combined into larger open networks, breaking down the traditional barriers between countries and industries and offering interoperability between various providers to create a truly global marketplace.
The next step is to connect these transactional business networks with payment networks so suppliers can be paid fast — upon invoice approval — while buyers can extend their payment terms.
With the growing trend of large companies to extend their payment terms so they can hold onto their cash, it typically takes 60-100 days for an invoice to be paid. That’s putting a lot of pressure on suppliers — potentially jeopardizing their financial stability and creating risk in the supply chain.
Business commerce networks are new business ecosystems that address these challenges. By combining the networks that expedite e-invoicing with payment networks, companies can have their cake and eat it too — making sure their suppliers are paid quickly while extending their terms.
It is a win-win situation for corporations and their suppliers, enabling a new golden era in global commerce.