The Problem Of Prompt Payment
One of the single largest problems for any company is fluctuation in cash flow, which may become problematic if customers and clients are late paying for goods or services. Some businesses may operate with several thousand dollars in unpaid invoices at any given time. This makes it difficult if not impossible to concentrate on any efforts involving expansion, since they are often in the position of having to play catch up with their bills.
One of the latest advances that is providing a boost for small business is the mobile payment device and other similar technologies that allow for sales to be turned into working capital overnight. Invoices are going the way of the dodo as more customers are now able to provide payment on the spot using a mobile payments. There is normally about a 2-3% fee for such transactions, but the convenience of instant payment and instant access to funds makes it more than worth it.
Up until just recently, many smaller services and contractors had to submit invoices, some with payment ranges of up to 90 days, which can often play havoc when trying to keep all of the bills and other managing expenses covered.
Technology has changed all of that, with mobile payments card readers such as the Square turning any smartphone or Ipad into an instant payment processor, allowing credit card swipes from almost any location. Electronic invoicing offers billing software for small companies that automate invoices, receipts, collections, and late notices, and are available for as little as $15 per month. Photo card processing takes a photo image of a customer’s credit card and processes the payment instantly, with most programs charging 20 cents per transaction.
In the past, business owners have relied in lines of credit, credit cards, or loans to get them through payment cycles, making rent payments to landlords, or paying bills for suppliers. As many as 45% of business owners cited not getting paid on time by clients as the single largest challenge they face when trying to manage a cash flow.
The Mobile Payments Solution
More of these outfits are avoiding that problem now through the use of the technologies mentioned above, creating cash inflows within a day or so. In fact, the number of firms using these technologies has taken off like wildfire, with improved efficiency and convenience driving the movement. More and more customers are becoming comfortable with the new technology and as such are comfortable making mobile payments through their phones and other devices.
Mobile payments also offer new and added levels of security, making these methods of payment much more secure than handing a credit card to a server at a restaurant.
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