Slow reimbursement can kill a partnership in no time. For channel partners everywhere, getting paid on time is a top concern, and being able to receive and make timely, currency-correct payments between vendors and partners throughout the world is a critical component of any incentive or marketing program. In recent years, I have seen an increasing number of regulatory changes globally that have impacted manufacturers’ ability to make payments to their international partners. Governments in many countries seeking to strengthen their economy/currency have instituted an increasing number of tax regulations including digital invoicing requirements, standard audit files for tax (SAF-T), E-Service taxation, and automated invoicing. In addition, the trend of disallowing cross-border payments, requiring funds to be transferred by local companies, continues to be a more common requirement, along with allowing governments to keep their local currency in country and more readily regulate taxation. Trade wars and the resulting tariffs, impacting both you and your partner’s business, have had a significant impact to the global incentive payment environment as well.
Over the years, I have observed manufacturers, in growing numbers, establishing legal entities or a legal presence in key countries as part of their global strategy. This allows them to strengthen their global branding and create additional business opportunities while complying with local regulations. It also helps them avoid resulting tax penalties by eliminating cross-border orders. However, the increase in global regulations combined with the resulting changes to the manufacturer’s business structure have combined to make navigating the global payment environment increasingly complex.
As a result, I have seen many companies become increasingly more confused or frustrated when trying to execute global payments from their own incentive programs. They have had to create unduly complicated processes around payment execution that, in the end, increase their operational costs. At times, these new processes often result in a significant delay in the ability to make payments to global partners on time and in the right currency. All of this has a direct impact on the partner’s bottom line and raises their frustration, ultimately resulting in both the partner and manufacturer losing business.
With a global payment solution offering, manufacturers can streamline payments worldwide, while avoiding costly delays. What this means is that global payment expertise must be coupled with software that can accommodate global payment requirements and quickly adapt to the ever-changing international environment. At Vistex, we have worked to develop such a solution. We bring our knowledge of global regulations to your tax/customs organizations to help discern your company’s needs and then integrate those seamlessly into our payment processes. We provide a comprehensive payment solution that disburses funds worldwide in more than 135 currencies and allows you to keep your partners informed on the status of payments. This offering is flexible enough to meet your program needs while complying with internal corporate standards and global tax regulations.
To operate as a respected high-tech company in a global marketplace, a global payments process is critical to overall partner satisfaction and complete transparency. And with robust security and controls in place, you no longer have to sweat it. You’re making your payments on time, reducing costs and inquiries, and boosting performance. Hello, World.