An innovative solution for getting your company paid faster.
As the cash crunch continues to tighten its grip on businesses and consumers alike, many small and mid-sized companies find it harder to get paid on time, or even get paid at all.
Most companies can no longer afford to keep every position staffed. With profits on the line, indeed with survival on the line, many are cutting back to only people who directly contribute to revenue generation.
Staying on top of accounts receivable can be a grueling chore in the best-staffed organizations, and it’s a nightmare for companies not able to full-time accounting personnel. That’s not to mention the problem accounting has always been for Mom and Pop companies.
Traditional solutions such as invoicing, calling to remind clients about due dates, cutting off delinquent clients, and referring past-due accounts to collection agencies, are no longer viable solutions.
But what if you could get paid faster and help your clients keep their money in their pocket longer as well?
With one small and smart change in the way you do business, you can virtually banish your cash flow problems forever and stop worrying about how to get clients to pay you on time.
The trick? Switch from a cash-based system to an electronic payment system via credit card.
What’s so smart about that?
- You get paid in 1-3 days from the credit card processor.
- Your clients get a 30 day float from their credit card bank.
- You eliminate or greatly reduce the personnel costs, related expenses, and headaches of mailing invoices; especially repeated delinquent notices.
- You don’t have to pay a collection agency 50% to collect delinquent accounts.
- Your credit card sales transactions integrate easily into most accounting systems.
- You can take credit card payments over the phone or setup an online system (for example, Amazon, systems used by phone and cable TV companies, electric, water, and gas utilities, even state and federal taxes).
Sure, you will pay processing fees for credit card transactions, but they are certainly lower than the costs of invoicing, and follow-up calls, and collections, especially if you use an outside collection agency to recover your delinquent accounts.
Plus, these fees are nothing compared to having your hard-earned money in your pocket, where it belongs, rather than languishing in your client’s checking account instead.