In business, you can waste significant amounts of time and money chasing overdue invoices. Not only does it hurt your cash flow, but it also increases stress levels and weighs on your wallet.
MYOB reports that Australian businesses wait on average 43 days to get paid^, but can get paid up to 4x faster by using an online payment method.
- Customer type – if you’re predominantly serving small customers with small invoice amounts then an online payment is ideal. However, if you’re serving corporate clients with larger invoice amounts, the option may not be very attractive to clients.
- Transaction fees – online payment providers will charge you a small amount per transaction. Although the rates are competitive, it’s worth doing your homework, as a small percentage point can make a big difference over the long term.
- Settlement period – depending on the online payment provider, the time when you receive settled funds can vary, so check this before you signup.
- Ease of use – before you introduce an online payment option to your customers, give it a test run to make sure it’s easy to use. If it’s seamless your customers are more likley to use it and pay you quicker!
If you haven’t already, check out the online payment integrations available with your accounting software or chat to our team on 5331 3711 (Ballarat) or 8391 3063 (Melbourne).
^Source: myob.com.au. Dun & Bradstreet ‘Australian Late Payments’ 3rd Quarter Analysis 2017.
DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.