For entrepreneurs and small businesses, cash flow is king. Without it, your business is exposed to danger, regardless of how good your business actually is.
One of the biggest headaches for small business owners is getting paid on time. If you operate in the service industry, this frustration can lead to significant cash flow problems down the road.
The good news is there has never been a better time to maximize cash flow than in today’s economy. The evolution of the payments industry is allowing small businesses to accept more payment methods and keep pace with their invoices. Combined, these tools ensure small businesses have steady cash flow to fund their day-to-day operations.
One of the best ways to keep cash flowing is to offer your customers convenient ways to pay. In addition to rolling out credit and debit card services, small businesses have the option of accepting online payments.
Online payment systems allow small business owners to process payments, fill invoices and sell their product or service to a global market. As technology becomes ever pervasive, online payments are an important tool to stay ahead of the curve. From invoicing clients to accepting credit transactions on your online store, payments are evolving at a rapid pace.
In what follows, we’ll present you with five options for accepting online payments right away. Once set up, your online payments system should integrate nicely with your other merchant services. Red Door Capital can help you define your cash management and merchant services strategy. Click here to learn more.
PayPal is one of the easiest ways to integrate online payments into your business. With nearly 200 million active accounts worldwide, there’s a pretty good chance your customers use this platform. You can create an account simply by registering an email. From there, you’ll have the opportunity to link your business bank account to PayPal. All money coming into your PayPal account can then be transferred into your bank account. The process only takes a few days. Transaction fees are miniscule compared to other services.
Shopify is much more than a payment platform. The service allows you to develop a fully integrated online store, giving you all the tools to launch and run your small business. Shopify Payments lets you manage your entire business in one place. By joining you’ll be automatically enrolled to accept all major credit cards as soon as you set up your Shopify store. This includes accepting Visa, MasterCard, American Express and others.
Freshooks offers small business accounting software that simplifies the billing process. In addition to managing accounts receivables, small business owners can set up online payment services easily. The cloud-based service allows businesses to easily set up and manage invoices and accept online payments. FreshBooks is ideal for service-oriented businesses, such as marketing firms and consulting agencies.
To learn more about small business automation, check out: Ten Ways to Automate Your Small Business for Maximum Efficiency.
Due allows small businesses to add low-cost, highly secure credit card processing to their payments system. The platform offers one of the lowest processing fees in the industry at just 2.8%. It also accepts all of the major credit cards, including Visa, MasterCard, American Express and Discover. Small businesses have three account options to choose from, and can upgrade as they scale up. This platform is ideal for businesses in need of international credit card processing.
Authorize.net is another international payment gateway that is ideally suited for small and medium-sized businesses. The platform allows small businesses to accept all major credit cards as well as signature debit cards. It is also built to accept digital payment options like Apple Pay, PayPal and Visa Checkout. Authorize.net provides other features, such as recurring billing and fraud protection tools. Businesses looking for affordable solutions and a streamlined approach to billing will make great use of Authorize.net.
Is your business ready to accept mobile payments? Red Door has you covered! Check out the following article to learn more: Fin-Tech Business Series: How Mobile Technology Can Help Your Company Grow
Develop Your Payment Strategy
Online payment systems are an important piece of the puzzle, but not the only piece. In addition to online payments, your business should also be set up for credit card processing. Much like online payments, credit card processing can increase cash flow, reduce stress and open other doors. To lean more, read: 3 Ways Credit Card Processing Will (Absolutely) Help Your Business.
Whatever payment service you choose, it needs to be integrated with your broader cash management strategy. This includes ensuring your business is liquid enough to fund its day-to-day operations without running into cash flow challenges.
Red Door Capital understands that very business owner has a unique situation. That’s why we’ve developed funding solutions for all of your cash flow and merchant service needs. Our services are most helpful for businesses that:
- Aren’t growing because they don’t have enough cash flow;
- Would like to boost cash flow without taking on addition debt;
- Are willing to spend more money only if its ROI positive; and
- Are looking to expand without the headache of administrative burdens.
If you find yourself in any of these situations, come have a conversation with us. We’ll make sure your business is on the right track for growth.
While you’re at it, check out the following articles for optimizing your small business:
- The Most Common Financial Barriers Facing Entrepreneurs
- Thinking About Starting an Online Business? These 5 Tips Will Help
- Entrepreneurship Is Driving the U.S. Economy: Are You Building to Scale?
<small>Jared Lindzon (November 14, 2014). “Top five online payment systems for your small business.” The Globe and Mail.</small>
<small>Brett Relander (July 19, 2016). “25 Payment Tools for Small Businesses, Freelancers and Startups.” Entrepreneur. </small>