Diversifying Payments: How Different Payment Structures Can Help Your Small Business

payment concept

There are about 32 million businesses in the US. About 99% of these businesses are small businesses with less than one hundred employees. These businesses are reliant on the revenues they make annually to keep their businesses afloat. Many of these businesses rely on their clients to pay on time because it could ruin their financials down the line if they don’t. Clients that don’t pay or take too long to pay can spell the end of various small businesses in the US, especially when the pandemic is around. If you are struggling to get your clients to pay, consider applying some of these solutions to your business.

Digital Payment

Sometimes, your clients don’t have access to your means of payment. If your payment requires them to physically visit your store or your company, then international clients may take weeks or even months to pay you personally. Clients from different states may also struggle in paying you. Additionally, other traditional means of payment may be hard to access because of the pandemic, such as banks. If this is the case, consider going digital for your payments.

Digital payments help various companies from all over the world grow. It supports many companies and helps connect with their clients, giving them other ways to pay. Many digital companies such as gaming and 3D-scanning companies rely on this mode of payment. Many of these companies have embraced digital payments and the digital world. There are many benefits to digital payments than just giving your clients another mode of payment.

One benefit is that it can save you the money from collecting payments physically from the client. Another benefit is that it can be more secure and faster than traditional payment methods. Digital payments now go through data on the internet, which are encrypted. This can make it hard for anyone to access the transaction aside for you and your client.

Another benefit is that digital payments can also be used for your employees. Companies that have multiple employees can be bogged down by following the traditional ways to pay their employees. It requires payrolls to be verified by their respective banks, which can take days to accomplish. However, through digital payments, this can be done in just a matter of hours. Your employees, including freelancers, can receive their payments faster without the hassle of waiting for the bank to finish the company’s payroll.

There are many benefits to digital payments that you should consider. Currently, many digital companies are offering secure and fast digital payments on the internet. These companies have different plans on offer. Choosing the right plan can help your company grow in the international market.

Installments

money budgeting

In some situations, your client may not have sufficient funds to pay for your services. It might be because they are having financial troubles or that they also are waiting for their client to pay them. Regardless of the reason, you should be considering letting them pay in installments.

Currently, many big companies all over the world are implementing installment payment services into their businesses. ‘Buy now, pay later’ is becoming a trend for many tech and digital companies. Recently, companies like Microsoft have implemented this kind of payment service for their customers and clients. Microsoft used Paypal, a digital payment company, to handle this kind of payment structure into their company. Microsoft’s products like the newly released Xbox Series X can be bought through installment plans. This makes sure that their clients can pay depending on how much they earn monthly. It can be structured so that clients won’t have to pay too much and all at once.

Moreover, individual transactions can have hefty price tags. Splitting these transactions into various installment plans can be beneficial for you and your client. You can even add small interest rates depending on how fast your clients pay for their installment plans.

Auto-debit Services

Your consumers might forget to pay for your services. This is an appropriate excuse considering that everyone nowadays is just too busy to remember various payments that have to happen every month. If this is the case, then consider applying your consumers to automatic debit payment services.

Many banks nowadays offer this kind of service, given that they have access to your client’s bank account. It is a growing trend for mainstream consumers because they don’t get bothered by reminders to pay their bills or their dues. It’s also more convenient for you and your client. Additionally, this can help the client avoid penalty charges if they forget to pay for your services.

During this modern age, there are many ways for your clients to pay for your services. It can be more convenient for you and your client to explore the various ways stated from this list. Finding the right medium for your payments can help your company grow and eventually become successful in the future.

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