Avoiding the Cash Crunch – Could Online Payment Business Solutions Be the Answer for Small Companies?
Over a fifth of all small businesses have admitted to struggling with late customer payments, and two-thirds of owners find that as many as 10 percent of customers never pay their bills at the correct time. This leads to a host of problems, especially when it comes to family businesses and new small startups that need regular cash flow to stay afloat. The good news, however, is that online payment business solutions could be the ideal answer to the problems experienced by small companies.
The Cash Crunch
When any business fails to receive payments on time, not only does it severely restrict cash flow, it also results in valuable employee time being wasted on handling financial matters, such as chasing down payments. Worrying statistics show that almost 60 percent of business owners who were recently surveyed said that at least two follow-ups were required to persuade their late-paying clients and customers to finally pay them the money that they owed. Wasting time in this way takes small business owners away from the important tasks of helping their company to grow and thrive, leading to a decrease in overall revenue. And, this problem is only compounded by the reduced cash flow caused by the overdue payments. With limited revenue, small companies can quickly find that they go under because of an inability to pay their own bills.
The Online Solution
Small businesses often rely on cash or check payments. However, this is not necessarily the right solution. Relying on payments to be received through the mail can result in thefts and loss, as well as repeated excuses from nonpaying customers. Although the idea of switching to an online payment business solution may sound intimidating and expensive, in fact, it usually reduces the costs associated with chasing after nonpayment of debts. It also makes sure that payments are more likely to be received in a timely manner. As an added benefit, offering an online payment system is likely to attract more customers since today’s consumers usually prefer the option of making a credit or debit card payment over the phone or on the Internet rather than risk sending cash, a check or their personal details in the mail where they could be vulnerable to interception.
A Payrazr virtual terminal, which allows for online credit card processing without the need for a physical terminal or POS machine, is perfect for any small business that does business in the online environment. A convenient and simple-to-implement solution for even the smallest businesses, these applications are hosted online and are accessible from any Internet-connected web browser to enable online processing of credit cards simply by entering the customer’s details onto an online payment form. Suitable for use by staff members over the telephone or by customers on their own through the company website, this convenient system offers a lot more protection for both merchants and consumers thanks to the PCI compliance and real-time authorization of payments. This gives business owners the peace of mind of knowing that the money is being safely transferred into their account.
Problems surrounding finance can spiral rapidly into an ongoing cash shortage, which can soon destroy a fledgling or small business. Customers who pay late can be the death knell to any company. Therefore, finding a way of dealing with the problem couldn’t be more important. BillingTree’s online payment business solutions are perfect for small companies that need to find a way to receive payments on time in order to accelerate their cash flow and to keep themselves afloat.