Do you complete a project and confidently (or tentatively) invoice in the hope it will be paid on time, only to move onto the next thing and realise a month has passed and it is still outstanding! According to studies, SMEs spend on average, a whopping £4.4 billion per annum chasing late payments.
To reduce the time between invoicing and the money actually clearing – thereby minimising the negative impact on your cash flow – small and medium businesses should consider digital payment platforms like Stripe, Worldpay, GoCardless, etc. Here’s why:
6 benefits of switching to a digital payment process
- Happier clients – Going digital benefits your clients as it gives them the widest and most convenient range of payment options to choose from. Making it quick and easy for your clients to pay makes them happy and it builds loyal relationships too!
- Greater visibility of your finances in real-time – Businesses that use a digital payment process always have their accounts receivables in real-time. This allows them to refine their credit control processes and make informed strategic decisions.
- Security compliant – The vast majority of software providers abide by the Payment Card Industry Data Security Standard (PCI DSS). This means all business and client data can be processed securely.
- Quicker reconciliation – Digital payments don’t take days to reconcile, they show up on your accounts receivable almost instantly. The result? Better documentation and more time for your staff.
- Consistent cash flow – Digital payments give an element of predictability and speed which results in a much faster cash conversion cycle. This means no more big gaps in cash flow due to late payments.
- Lower processing costs – Although these providers charge a fee per transaction, switching to digital means less time is spent on credit control and more on work that is chargeable.
Wave goodbye to late payments
Payment delays can build and threaten the future of your company. To avoid potentially irreparable damage, implement digital payments sooner rather than later. Not only will this balance out your monthly cash flow and reduce manual work and extra costs, but it will also improve your client journey and most likely ensure repeat business.
