To stay afloat, it’s important to have more money coming in than going out – whether that’s bringing in more sales or finding creative ways to cut expenses.
In this article from payments network Rapyd, we’ll cover four top tips on how the right payment processor could help you improve your business finances and avoid getting caught in a cashflow crunch.
Top 4 tips to improve cashflow
Read on for all the tips or jump straight to the most relevant one for your business:
1. Cut fees to keep more from every sale
2. Make it easy for your customers to pay you
3. Consider raising your prices to fight inflation
4. Go global and grow your sales
#1 Cut fees to keep more from every sale
If your company accepts credit card payments, you might be able to find a way to reduce expenses. Did you know that you are not required to use the payment processor that is given by default by ecommerce platforms such as Wix, WooCommerce, and Shopify?
The vast majority of reputable payment processing firms have plugins that are simple to set up and can help you expand your customer base. These plugins can also reduce the transaction fees you have to pay when customers make purchases from your website.
Do some research to discover a payment processing rate that is both competitive and offers inexpensive transaction fees. You shouldn’t be hesitant to contact the supplier you’re already working with in order to renegotiate your fee if you’re already using their services. With Rapyd, you may reduce your processing fees by up to 80 percent in Ireland and the United Kingdom.
Consider how long it will be until you can get access to the money you have as a further essential factor to take into account. You will want to ensure that the conditions of the settlement are suitable for your company. You can get a free settlement the following business day in addition to saving money on processing fees when you use Rapyd.
#2 Make it easy for customers to pay
Making it simple for people to pay you should be a priority if you want to keep a steady cash flow. Choose a business to handle your payment processing that accepts all of the many methods that your consumers might want to use to pay you. Customers in the modern era anticipate having options, as well as the desire to utilise the payment methods that are most common in their own countries.
Customers desire the ability to make contactless payments using their mobile devices, in addition to using applications and electronic wallets. Customers will be able to pay using the methods they are most comfortable with if you use Rapyd because it enables you to accept hundreds of different payment methods, including as cards, digital wallets, bank transfers, and cash.
There are further approaches that can be taken to simplify the payment process for consumers. The payment process can be sped up by sending invoices, providing payment links, and utilising automatic invoicing. You are able to send invoices using Rapyd and effortlessly add a payment link to emails, text messages, and any other platform that allows you to paste a link. In the United Kingdom, Rapyd is compatible with the Faster Payments System, which makes it possible for nearly anyone who possesses a bank account to make real-time payments. In addition to this, Rapyd provides solutions for automated subscription payments and recurring billing.
#3 Consider raising prices to fight inflation
Are you seeing a significant decrease in your profits as a result of inflation? Take a bite out of the competition without alienating your customers. At the moment, everyone is concerned about inflation and seeking for ways to lessen their financial obligations in order to save money. Negotiating new payment terms with your vendors is one approach to keep more cash in your business for longer. When you have more time to pay your bills, you have better control over the resources you have at your disposal. Because being caught with either too much or too little inventory may be a source of stress for a company, proper inventory management is essential to the continued success of a company.
You can save money by looking for less expensive supplier sources, which are frequently located in foreign nations.
Consider also going with a higher pricing point for your products. Although it may not always get support, increasing revenue is one of the assured benefits of this strategy. Notifying your clients of the price rise in a timely manner and providing an explanation of why it was necessary can help you avoid any negative feedback. In this system, it may be sufficient to just split the increasing expenses of supplies rather than shouldering the weight of decreased profits all by one’s lonesome.
#4 Go global to grow sales
58% of small firms in the United States reported having international customers just before the outbreak. As a result of the meteoric rise in internet sales, it is time for you to review your business plan and consider whether or not going global is the best course of action.
You will be able to reach millions of new clients if you make it possible to conduct business across borders. You will be able to use Rapyd to collect payments in more than 100 countries and make payouts in more than 190 countries. If you’re ready to take your company global, Rapyd can assist you in minimising the costs associated with foreign exchange and developing a personalised checkout experience that is available in sixteen languages and supports the payment methods that are most popular in each region.
Expanding your consumer base to include people from all over the world is another astute move you can make to improve your cash flow.
Final thoughts
There’s no denying how tough it is to be a small business owner now, so keeping on top of costs is more crucial than ever.
Here’s a summary of our top tips:
- Remember, the easiest way to keep cash flowing is to increase your sales. Reducing transaction fees and business expenses also help.
- Keep the money coming in by accepting new and popular payment methods, like sending invoices and payment links.
- Are your prices in line with recent increases in inflation? Update your prices without alienating your customers.
- Grow your business by expanding into new markets and even new countries and maintain a healthy cashflow for your business.
