Small businesses are universally acting the same as cash-in or cash out balancing act to keep the business running. The struggle for managing cash flow has been hard-fought, and small businesses are continuing to discover innovative ways to make and acquire payments promptly.
According to a research conducted by the PYMTS.com, backed by Sage Payment Solutions, one-third of the survey respondent small business owners said that their biggest challenge is getting paid on time, and almost 14% of small business owners said that they were aggravated with their invoicing system. Small and medium sized businesses frequently struggle with liquidity problems on account that they can’t tap into an equity market or sell corporate bonds as larger businesses can.
Almost thousands of small business owners participated in the survey and 1,000 of consumers to determine their overall impression of various factors impacting the payments industry, for instance, cash flow and the late payments. If you’re a business owner and are seeking ways to accelerate your small business cash flow, here are some ideas your competitors have carried out during the year.
- Upgrade To Latest Technology
In their point of view, the primary obstacles to speeding up the payment in and out of a business are internal dealings. Almost 52% of small businesses have the same opinion that the technology that consists of management dashboards, would improve their view of payments in and out, speeding up the procedure for paying the suppliers, workers, and the customer payments.
Research software services that can put together with your payments process to help with the accounting. Some additionally attribute invoice reminders to motivate the customers to pay off quickly. Further than the stress-free transactional feature of integrated payments.
- Start Considering Your Funding Options
Traditional banks are still well-known funding source for small businesses; however almost 34% of small businesses who responded to survey consider that the banks have not made an effort to make small business loans available for small business owners. This has generated a trend toward alternative funding options, which includes crowdfunding and peer-to-peer lending.
In the survey, almost 62% of respondent businesses said that crowd funding is much easier alternative for small business funding, and 68% of small businesses stated that they would use it again. With comprehensive research, both the alternative and traditional lending options are viable, but alternative lending can get you quick funding than traditional sources.
- Provide Customers Convenient Services
The more expediency you add to your payments services, the likely your customers are to pay you promptly. In case your customers can ask about your online services, it is good to allow them to pay for your services online. The additional benefit of that is it also elevates customers experience and increases the chances of referred and returning business.
- Know The Changing Payment Trends
For small businesses, it appears that there will usually be some sort of new challenges in relation to being paid in a timely fashion. Some huge consumer goods companies, for instance, now have the payment terms of up to six months. Businesses that supply these large companies actually don’t appreciate being served as, basically, a lender; however, the bigger concern might be that small businesses undertake this upsetting trend and try to extend their own payment options. It is important for small business owners to pay attention to this and should determine how to take appropriate actions.