Would you believe that more than a third of small businesses today have customers who are over three months overdue on their payments? It’s true. So how should businesses go about handling this problem? One way is to take advantage of collections credit card processing.
But before we get into why collection agency credit card processing can help, let’s talk more about accounts receivables and how they’re pretty significant in the world of small businesses. You see, if you didn’t already know, accounts receivables happen any time a service or product is given to a customer, but the customer who does not have to pay until later.
Even though this money that has yet to be collected it is considered an asset to the business – at least it is on paper. But a lot of times, customers don’t actually pay when they’re supposed to and that leaves the business in a difficult position. Of course, the business has to try to get the customer to pay them what they’re owed. Unfortunately, 25% of small businesses that do have customers late on their payments have extreme difficulty collecting the money that’s due.
It’s a fact that customers who fail to pay on time have become a very prevalent obstacle that businesses have to face. It seems as though many more customers they days are not conscientious of their bills — they’re disorganized with paperwork and don’t budget well in order to pay what they owe. Moreover, the problem of late-payers has the weight to actually immobilize small businesses keeping them from running as usual.
When several accounts become delinquent they carve into the business’ working capital and capacity to maintain their cash flow. After all, how can a business thrive if it’s not being compensated for its services? The answer is it simply can’t. So what can businesses do so that they aren’t brought down by the no-payer epidemic?
As mentioned before, collections credit card processing is a great way to go. If you make paying their debts much easier for customers they are that much more likely to pay them. And so, if you make debit available to customers by setting up with ACH (Automated Clearing House), they’ll be able to conveniently draft money into your account.
Not only that, if you give your customers the option to pay online with credit cards, you will, without a doubt, be making it decidedly easier for them to pay you. And because of this ease of payment, those payments and debts will be paid back much faster.
That’s why collections credit card processing is a must-have for businesses that want to succeed. By having the right payment options that customers prefer you’re ensuring that your business won’t fall due to customers avoiding inconvenient payment methods. It’s one problem fewer to worry about when it comes to finances, since you know customers will be more obliged to pay you online.
Ultimate Merchant Providers can give you the collections credit card processing that you need to operate efficiently. Take advantage of this option and stop worrying about getting paid.