B2B Rebates Are More Valuable Than You Think
February 9, 2023
3 min read
Remember mail-in rebates? When you had to fill out a form, stuff it in an envelope, and then send it in, with the hope that the money would return in the form of a paper check. Well, those are a thing of the past, at least for B2B rebates.
There are no envelopes to stuff nor stamps to buy. It’s far more lucrative, too. Per Paymode-X analysis, B2B rebates have the potential to bring in revenue equal to 2% of your annual supplier spend. This could mean thousands to millions of dollars back in your organization’s bank account.
So, if you hadn’t considered the value of B2B rebates for supplier payments, now is the time.
Understanding B2B Rebates for Supplier Payments
Let’s say you want to pay your supplier, Make Your Lawns Green Inc. Instead of issuing the supplier checks, which can take days or even weeks to arrive, you’ve decided to pay via a highly secure payment method, Paymode-X’s Premium ACH. Your supplier agrees because they don’t want to worry about checks arriving late or not at all.
They also want greater security than checks, which are the payment method most susceptible to fraud. In fact, the 2022 AFP Payments Fraud and Control Survey found that 66% of companies had their checks targeted for fraud.
So, Make Your Lawns Green Inc. joins the more than 500,000 others businesses that have agreed to get paid by Paymode-X in its closed, secure network.
When it’s time to pay Make Your Lawns Green, you’ll just log in to your Paymode-X portal and hit approve. The Premium ACH payment will be sent electronically to Make Your Lawns Green, who’ll receive the ACH payment in just a few days. Make Your Lawns Green pays a small fee for speed, convenience, and enhanced accounts receivable features. That fee represents your rebate, which is typically between 1-2% of the total payment amount.
That money, which your AP team receives back simply for using electronic payments, adds up. The combined savings of electronic payments and their rebate potential can even transform AP from a cost center to a profit center.
What Can I Use Rebates For?
That’s the beauty of rebates: it’s your call.
For many payers using Paymode-X, these rebates go toward the hefty cost of a new ERP or other business-critical software. In some cases, they go toward needed headcount, paying down expenses, or even company events. It’s just important not to ignore this revenue potential, because it can have a huge range of applications depending on your business needs.
Why do some companies ignore it, then? Some are unwilling to approach suppliers about electronic payments. Others believe generating rebates requires additional work, or involves hassles similar to the mail-in rebates of yesteryear. Leading payments providers like Paymode-X however, will do all the supplier onboarding on your behalf. They’ll also seamlessly process all your electronic payments and rebates for you.
So, don’t overlook B2B rebates. There are thousands–maybe even millions–of reasons not to. See how you can drive more revenue with Paymode-X.