26 October 2023
Whether they are in the process of launching or already established, B2B marketplaces are constantly striving to offer an optimised buying experience that anticipates buyers’ expectations and ensure secure transactions. To achieve this, they need to choose an invoicing model that meets the needs of professionals while ensuring that financial flows are properly managed. And this is often where the headache begins! How do you reconcile the user experience, supplier diversity and regulatory compliance? Discover our tips for an efficient invoicing process.
Invoicing is a significant issue for B2B buyers. They are obliged to justify any payment made to a supplier using an invoice. This must be sent to the accounts department and integrated into their internal tools. The problem when B2B buyers purchase from a marketplace is that they have to manage a supplier database. This is time-consuming for the accounts department and makes cash flow monitoring more complex, especially when the company has several thousand suppliers!
For B2B buyers, reconciling data is costly even with the most efficient ERP, especially as we tend to underestimate the number of service providers used by a large industrial group. Non-strategic, non-recurring indirect purchases account for an average of 60% of order volume, 75% of the number of suppliers and 85% of total items. Often hidden because they are associated with purchases with little or no structure, the processing costs incurred by unregulated purchasing represent a considerable source of savings for companies and a real headache for purchasing departments.
Faced with accounting challenges, marketplaces must adopt a more or less effective invoicing model. There are 3 main trends:
Today, the One Creditor model is increasingly appealing to B2B marketplaces, particularly those supplying large accounts. By financing sellers to become their sole creditors, B2B marketplaces no longer have to manage the collection of funds on behalf of third parties. However, given the demands of the B2B sector, it is advisable to be well supported!
Because they provide a payment service on an ongoing basis, B2B marketplaces have legal obligations to protect funds and combat tax fraud and money laundering. Using a PSP (Payment Services Provider) is a good idea: it ensures that you comply with the law. The PSP is also beneficial, even with a One Creditor model, for easily creating payment accounts and carrying out the KYC (Know Your Customer) procedure for sellers to identify all the people – legal or natural – with whom the marketplace does business. In the event of fraud, relying on a PSP also means you can be reimbursed!
Invoicing is a major technical issue for B2B marketplaces and needs to be handled by experts. While many Content Management Systems (CMS) and PSPs develop their own invoicing solution as an additional service, calling on a third-party partner specialising in creating an invoicing solution seems more appropriate. Why would you do this? In addition to managing the flow of transfers, direct debits and card payments and carrying out KYC, creating an invoicing solution is a real job, requiring, in particular, the complex calculation of taxes and currencies!
By choosing Lemonway, you’ll be sure to have an optimised financial flow management AND an innovative invoicing solution via the Fonoa platform, a trusted partner specialising in the automation of invoices and taxes.
What are the advantages of Lemonway and Fonoa? Complete verification of the tax status of the buyer and seller, rapid calculation of the tax to be invoiced and almost instantaneous creation of an invoice in compliance with current local tax legislation, all with perfectly controlled and secure financial flows. To learn more about our complete offering, contact one of our Lemonway experts!
For large companies, digital transformation has become vital. Today, B2B e-commerce has overtaken...Read more
On a financial marketplace (crowdfunding, crowdequity, crowdlending, etc.), it’s essential to...Read more