Small businesses often don’t recognise the impact payment methods have on their net cash flow. It can seem that however you take payments, the same money problems would still happen. How then, does a bad payment method actively stunt the growth of a business?
How businesses usually take payments
As a small business, you most likely invoice a client and wait for them to pay. This is the current norm and how most businesses choose to get paid. Invoicing in this way can create problems, like pay gaps which affect cash flow.
The effects of a low net cash flow
When you do this, you give the opportunity for dreaded cash flow gaps to pop up. Bills might go unpaid for days, jobs might not be started, and employees or subcontracts could even leave.
It is often seen as kind or polite to wait for payment. Maybe you don’t want to strain relations with this client, or they’ve always paid in the past. While these are all valid reasons to wait, it’s not necessary.
How things are changing
Invoicing solutions are becoming widely accessible to everybody in general. This means that small businesses can finally start to use the tools that bigger businesses have access to.
As a small business, before, you would need to send an email invoice and wait. Now, we have a brand new way to do things called E-invoicing.
What is E-Invoicing and how does it impact cash flow
Electronic invoicing, or E-Invoicing is an effective way to invoice on the go. It differs from digital invoicing by cutting out the need for things like email. Best of all, E-invoicing is available from your phone.
E-invoicing allows businesses of all sizes to invoice clients and get paid instantly. It does this by allowing card payments and is optimised to allow paying in one touch.
Download the invoice24 app today to start noticing a visible cash flow improvement.