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Collecting Payments From Customers More Efficiently
Monday, July 9, 2012, 9:06 AM
[General]
This simplified and streamlined process can make your business have lower overhead and may minimize your back office needs and cut down on labor expenses. Even if the credit card processing charges feel expensive after shopping around,Cheap George Blanda Jersey, be sure to compare it to the full costs of the traditional inefficient cycle of invoicing and then begging your customers for check payments when they have the incentive to wait as long as possible to pay you.
Many business spend a lot of time invoicing their customers,Cheap Kurt Warner Jersey, managing accounts receivable and collections,Cheap Shonn Greene Jersey, and dealing with payments by check that are coming in. Most people consider this to be a necessary evil of doing business and don't realize that in many cases they can dramatically simplify their processes by accepting credit card payments. On the surface, accepting credit cards feels expensive compared to checks because of the card processing fees which can be as much as 3 to 5% of the transaction. On the other hand, this cost is worth it for many businesses since it is actually less than the financial and time costs of invoicing and collections. When you ask a customer to pay right away, you limit the amount of AR and collections work that you will need to do later. This saves you time, and results in more predictable cash flow. Instead of playing the game of how long can they wait to pay their accounts payable with you, your customer can play this game with their credit card company instead.
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