Obtaining prompt payment from customers is a challenge for many business owners, and late payments present companies with many cashflow issues – hurting profitability.
High outstanding receivables leave businesses at greater risk of debt and hardship – with over 28% of companies claiming they needed to cut salaries to absorb the cashflow issues of late payments.
That leads to the need to recover unpaid invoices, piling on added costs associated with chasing these late payments.
Surely there’s a way to get payments from cash-strapped B2B customers? The answer to this age-old dilemma is clear: by offering quick, easy same-day financing options to your customers.
In this article, we’ll explore how Cashflow.io’s Pay Later tools can help relieve the burden of slow payors and how that can help provide much-needed stability to your business.
Avoid late payments by offering customers a ‘Buy Now Pay Later’ scheme
One of the most important reasons customers may have to pay late is a lack of cashflow/funds to pay for your services. This issue can be solved if they could pay later, but providing goods without payment will quickly eat up your firm’s available capital.
With Cashflow.io’s same-day financing options, your customers can enjoy the benefits of a flexible payment plan whilst getting cash to you immediately.
Here’s why accepting “buy now pay later” payments can aid your business:
- It targets that group of your customers that are most likely to miss payment dates. Those clients with a lack of funds may not be able to meet your invoice deadlines, and so by offering an alternative route, you are guaranteeing funds faster than you could receive them without a financing option.
- It improves the customer experience and boosts satisfaction. Accepting a Buy Now Pay Later scheme presents your business as accommodation and adaptable, lifting your company’s reputation.
- By accommodating “later payments” you are reducing the costs associated with chasing late payments. Dealing with outstanding payments can be expensive. This involves administration costs, legal fees and more. This all can be avoided by offering a more attractive payment plan to your customers.
How else can you disincentivise late payments?
Offering same-day financing isn’t the only way you can encourage customers not to delay their payments. Cashflow.io offers a suite of tools perfect for avoiding costly late payments.
The first is offering early payment incentives like discounts to reward those customers that are prompt with their payment. Remember, a buyer will always try to reduce their Cost of Goods Sold (COGS) and therefore if this aligns with the incentive to pay early, you’re much more likely to get prompt payment.Another option possible through the Cashflow.io platform is sending automated SMS reminders. Studies show that SMS payment reminders can improve on-time payments by up to 9%!
Let’s get started!
So, what are you waiting for? Get started with Cashflow.io for free! This trial tier gives you 25 free transactions a month or $25,000 in volume – whichever you meet first.
Once you’re ready to transition over to Cashflow.io as your main remote back-office payment solution, you can get started for as little as $50 a month – or go ‘Pro Unlimited’ for $100 a month. There are zero integration costs and no long-term commitments or contracts.
Get started today at cashflow.io/signup and make late payments and cashflow concerns a thing of the past!
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