What is a Payout?

A payout refers to the distribution of funds from one entity to another, such as a business disbursing payments to employees, vendors, or partners. In the B2B, payouts often involve paying suppliers, service providers, or freelancers for goods or services rendered.

Payouts are crucial for maintaining smooth business operations and building trust in financial transactions. They can be one-time payments or recurring, depending on the agreement between the parties involved.

How Payouts Work:

Initiation: The business determines the amount owed and the recipient details. For example, a SaaS company might calculate partner commissions for the month.

Approval: Payout requests are verified and approved internally to ensure accuracy.

Payment Processing: Funds are transferred using the agreed payment method, such as bank transfers, direct deposits, or digital payment platforms.