Does Your Business Have a Payment Strategy?

Business payment strategy

How many different payment methods do you offer to your customers? How accurately can you forecast what your cashflow will be in any given month? What do payments that don’t come in on time cost you, in terms of both credit control activity and possible funding arrangements to plug the gap?

If you have a strategy for growth in 2017, then you also need a strategy for payments, in order to be able to fund that growth. Having the confidence that payments will come in when expected, and that your cashflow will be robust, is key to putting in place firm plans for spending and expansion.

Why a Payment Strategy is Vital

Payment methods have changed drastically over the past decade – and will continue to change over the next – largely driven by changes in technology. Cheques have gone from being the preferred payment method for many people to one that is rarely used. And there’s another consideration to take into account – the fact that transacting in cash is becoming less popular, especially amongst younger people.

If a business that only or mostly trades in cash – for example, a retail, food or hospitality business – fails to change the way in which it operates, it may find it has fewer and fewer customers until the business ceases to be viable.

Increasingly popular methods of payment include not only debit and credit card transactions, but also contactless payments, where people simply wave their enabled card or mobile device over a reader. It’s contactless payments that pose the biggest threat to cash, which has traditionally been used for smaller value purchases.

According to James Frost, chief marketing and commercial officer at Worldpay, “Cash is set to melt away into a digital flow of ones and zeros. Retailers not offering contactless payment options are in danger of being left behind.”

Direct Debit – Your Perennial Payment Partner

Direct Debit remains a popular payment method, as it’s both reliable and has the ability to be adaptable. If you currently have a small number of clients playing by monthly direct debit, then you have a foundation on which to build. Imagine moving from having, for example, £2,000 per month landing effortlessly in the business bank account to having £20,000 coming in – what kind of a difference would that make? How much easier would it be to make plans, raise finance and fund growth?

If the thought of having to manage such a system makes your heart sink, bear in mind that you can hire a direct debit bureau to do that for you. Here at London & Zurich we are specialists at offering a range of direct debit services that can save your company both time and money. It’s safe, secure, and you have access to expert advice whenever you need it. We can take care of everything, leaving you free to focus on your core business knowing your cash flow is assured.

The name of the game is to make it as easy as possible for customers to pay in the manner in which they would choose to pay – and that needs an effective omnichannel payment strategy. The upside of embracing change and implementing such a strategy is a positive boost to your cashflow.

If you’d like to find out more about direct debit and card payment gateways, and why they should be an integral part of your payment strategy, speak to our expect consultants today on 0121 418 8184 or apply for our services here.