Integrated Payment Solutions to Fuel the Auto Industry

Are you using payment technology to manage your loan portfolio effectively? A 2019 Experian study shows auto loan debt is at a record high. As an auto lender, your first thought might be, “Well, of course. Cars are more expensive, and more people finance them now.”

Reliable and fast vendor payments are critical for dealerships because they must keep their inventory stocked and bills paid to grow and scale with the ever-changing market. Too often, payments are slowed by the manual process of cutting and mailing checks which leave dealerships with high labor costs associated with the accounts payable (AP) process.

It might (or might not) surprise you that many B2B businesses are still using outdated payment methods like paper checks for their accounts payable (AP) processes. In fact, according to a study from PYMNTS, “25% of B2B payments are made via paper checks.”

In the age of technology and digitized processes, paper checks are gradually becoming a thing of the past. They were once one of the dominant payment methods, but today, roughly only 7% of consumers pay bills with paper checks.

Digital payment technology has made tremendous strides over the years, enabling anyone to receive or make payments from almost anywhere. Offering consumers digital payment options gives lenders a significant advantage but also opens the door to potential bad actors.

This quote by management expert Peter Drucker is something to consider as you assess the functions of your auto dealership’s accounts payables (AP) department and decide how they might be improved. Chances are, you will find operations bringing limited value to your cash flow and processes that hinder your vendor relationships.

The financial industry has seen many changes over the years, and that includes the rise of digital and mobile payments. As customers have become more reliant on technology — such as their phones, computers and wearables — they’ve also become more accustomed to convenient and flexible payment options.

When you open your wallet to make a payment on a loan or bill, have you ever considered why you reached for a particular payment method? Whether you are trying to earn travel miles on a credit card or are being mindful of your budget with debit cards, we all have different reasons for making our payment choices.

Most people dread tax season — a typically chaotic time of year when we scramble to get our documents organized in a timely and accurate manner. Some of us get them done early, while others wait until the last minute.