Thursday, 5 January 2023, 3 minute read
To build and maintain strong relationships with vendors, it's important for small businesses to make sure they pay their invoices on time. While this can sometimes be easier said than done, having a consistent and streamlined approach to paying invoices will help you stay organised, keep your vendors happy and avoid having to pay any late fees.
One of the most popular ways to pay an invoice is by bank transfer, as this method allows you to transfer funds directly from your bank account to the recipient's account. This method of payment is convenient, secure, and can be done online or in person at your bank. In today’s article, we’ll break down how to pay an invoice via bank transfer, as well as the best way to pay invoices quickly and securely.
How to pay an invoice
#1: Gather all of the necessary information
Before you can pay an invoice by bank transfer, you’ll need to gather some information about the recipient and the payment, such as:
The recipient's bank account details. You’ll usually find this information at the top of the recipient’s invoice.
The amount to be paid. Make sure you know the exact amount that you need to pay, including any taxes or fees, and that the amount on the invoice matches the price you were quoted originally.
The payment due date. It's important to pay the invoice on time to avoid any late fees or interest.
#2: Make the bank transfer
There are a few different ways to do this:
Via online banking: If you have online banking set up with your bank, you can simply log in to your account and make the transfer from there. Just follow your bank’s online prompts to enter the recipient's account information, the amount to be paid, and the payment date.
Via a mobile banking app: Many banks also have mobile apps that allow you to make bank transfers directly from your phone.
In person: You can also make a bank transfer in person at your bank, by either speaking with a teller or using an ATM.
#3: Confirm and complete the transfer
We’d always recommend double-checking that all the details you’ve entered are correct before confirming and completing the transfer.
Once you’ve confirmed the details, the funds will be transferred from your bank account to the recipient's account. Exactly long this process takes will depend on your bank and the recipient's bank, but bank transfers will generally be instant - or take just a few hours. If the recipient is overseas, you may also be charged a fee by your bank.
Top tip: It's a good idea to keep records of all of your payments, including bank transfers. This will help you keep track of your finances and ensure that you have a record of the payment in case any issues crop up.
Can I pay an invoice with a credit card?
It’s definitely possible to pay an invoice with a credit card. In fact, most businesses and vendors accept credit card payments as a convenient and secure method of payment.
However, it's important to note that some businesses may charge a processing fee for credit card payments, and you’ll also need to make sure that you have enough credit available on the card to cover the payment.
It's always a good idea to check with the vendor to see what payment options are available and to understand any fees or restrictions that may apply.
The easiest way to pay an invoice
In addition to paying invoices via bank transfer, you can also use a payments solution like Crezco to securely and easily make account-to-account payments - both domestic and international - quickly, safely and without any risk of human error.
Crezco can help
Crezco can be your go-to solution to pay your domestic and international suppliers instantly in one click or schedule them for later. Payments are made directly from your bank account to your suppliers' bank accounts, in the desired currency.
You can easily import/reconcile invoices and contacts from your favourite accounting and payroll software to automate your payments.
Crezco makes it easy to pay international invoices from vendors located around the world, and offers a wide range of payment options to allow you to transfer funds to 37 currencies.
With Crezco, you can initiate bulk payments to pay multiple invoices at once, saving you time and energy.
Essentially, whether you’re a small business owner paying invoices or employees, Crezco can help you take your payments processes to the next level.
Read more: Paying wages to overseas employees
Read more: Best way to pay Chinese suppliers
Read more: What is a PO number?
We hope that after reading this article, you feel well-equipped to pay invoices by bank transfer (or using Crezco). It’s time to become known as a business that gets invoices paid securely, efficiently and on time!