Poor payment systems can have a massive negative impact on a business. Some are slow, some are outdated, and others don’t even take security into account. So what can you do? From automatic reminders to setting payment policies, here are some features that can help.
Embrace Multiple Payment Systems
If you are still only taking cash, you are living in the dark ages! Come into the light of the future with digital payment systems. You know your phone can store digital wallets, right? Even if you don’t know that, the kids do, and they prefer to use them! That’s why North payment services and other similar platforms include flexible payment options for all customer demographics. So instead of sitting on the 1 and 0 fence, bring your company into the 21st century today!
Automate Reminders and Notifications
It becomes much harder and more expensive to recover payments owed after the date has passed. Many are just honest mistakes, and most people don’t like missing payments. But it does happen, of course. So how can you ensure customers pay on time/ This is easier than you think! Simple reminder and notification systems that send texts and emails can be all it takes to help customers manage their bills so they are more likely to pay what they owe your business.
Avoid Disjointed Poor Payment Systems
A report by Okta found that employees of an average small business can use up to 58 different apps every day just to do their jobs. This is an obvious waste of time, and your business will lose money on subscriptions. Just like cutting costs as a parent, it’s time to snip-snip and get rid of things that don’t make sense, like using different tools for managing accounts. Have you ever thought of all-in-one solutions with integration features? Fewer tools, lower costs and more time!
Set Clear Policies About Payment
A confusing policy around payment expectations doesn’t help anyone. If a policy is also unclear, it makes it likely that a business would lose a court case. Therefore, it is in your company’s best interest to ensure customers understand how they can pay, when payment is expected and the consequences of missing payments. For instance, offer multiple ways to pay, such as online portals. But also make payment dates clear, and inform them that interest will accrue if missed.
Ask for Upfront Deposits
There is no law that says you can’t request a deposit for an expensive item. This works well for large projects such as construction, but it can apply to anything. A deposit will help ensure you have at least some payment should a client default on further payments. However, it also binds the business and the client into an understanding and agreement concerning a service. Of course, you have the right to withhold a deposit in some cases, including service cancellation.
Summary
Offering flexible payment methods such as digital and cards will help you avoid some of the issues around poor payment systems. All-in-one software and app solutions can be a lifeline when cutting costs, and old-school methods like interest policies and deposits still work well.
