Shift, a provider of credit and payment platforms to Australian businesses, has been making inroads in the hospitality industry with Shift Trade, enabling roasters, food, beverage, and equipment suppliers to create a seamless payments experience for their business customers.
“The current situation is sub-optimal, with suppliers providing trade accounts and acting as a bank for their business customers, who in term are stuck without payment term flexibility,” says Paul Barker, Merchant Sales Director of Shift.
“For example, a roaster might sell thousands of dollars’ worth of beans in a week, but with 30-day payment terms, they don’t see any of the funds for a month, and that’s if their customer pays on time.”
Paul says that’s cash tied up that the roaster could utilise to grow their business, improve their buying power or even to have funds in reserve for when the unexpected happens.
“This is more important than ever, with data from the Shift Business Index showing that the hospitality industry spent 52 per cent of incoming revenue on supplier purchases in July, illustrating the long overdue need for change to benefit the supplier and the trade customer,” he says.
“Shift Trade gives suppliers and their customers flexibility. The supplier invoices the customer as they normally would but gets paid straight away by Shift, while the customer can choose to accept the supplier’s standard payment term or extend the term for a period that suits them.”
According to Shift, this approach has the added benefit for suppliers of removing the administration and risk associated with issuing and managing trade accounts.
When looking at business payment solutions, Paul says that suppliers need to choose providers that work for the customer through an easy sign-up process and for the suppliers by working into their business processes.
“The idea is that both parties can get on board easily, the transactions are simple, and the platform streamlines processes, so the merchant and their customers can get on with business. Once set up, it encourages repeat business and takes away the stress of unpaid invoices,” says Paul.
For more information, visit the Shift website.
