Sunday, 22 July 2018

Information and commentary for the small business banking industry

Why your small business customers should be accepting online payments

16 Sep

It’s fast, it’s easy and it boosts cash flow

Customers are used to paying immediately when they’re in retail outlets. This is more of a problem with service-based businesses, many of which are still using an invoicing system to collect payment from their clients. The way around that is to encourage your small business customers to offer an online payment option.

The great thing about it is that everyone’s online these days, and most people are there via their smartphones. If you’ve got a small business customer who’s a window cleaner, they could simply give their bank account number to their clients who can pay on the spot for a job well done.

And that’s just one of the online methods small businesses can use. Credit/debit card payments can be done online, as can the use of a third party system like PayPal.

Paying online – benefitting the business and its clients

For small business owners, getting paid promptly and with minimal hassle is a priority. Getting the money in their account boosts their cash flow so they’ve got the necessary funds on hand to pay their own bills and to invest in business growth.

But it’s also a great option for their clients to be able to pay on the spot. Most people actually prefer to pay immediately, rather than wait for an invoice or writing a check that’ll take a week to clear, because then it’s done and dusted and their own bank balance is up to date. And because online payments only require a smartphone, a happy client can stand in their newly landscaped garden and pay the business owner while both of them reflect on a job well done. A good feeling all round!

Other benefits include:

  • A reduction on stress levels. The last thing anyone needs is to worry about getting paid on time and chasing up outstanding invoices. Giving customers the option to pay online means they’re more likely to pay promptly.
  • Shortening cash cycles, since the whole thing is completed in a matter of minutes.

Adding an online payment option, especially one based around credit/debit cards or PayPal, means that a business owner can consider branching out into e-commerce. If they’re selling their goods through a bricks-and-mortar store, they can now offer them online, which means they’ll increase their customer base and improve their profitability. It’s a great way to enter the international marketplace, especially if they’ve got their eye on exporting goals in the future.

Most banks have online payment solutions they can offer their small business customers, and it’s worth bringing it up with any of those who don’t, because they’re missing out on a really effective way to improve their cash flow.

Here at TSBC, we’ve got plenty of content around the different payment solutions small businesses can use to enhance their business. Get in touch with us so we can help boost your online content.


Glen Senior
Glen is the founder and CEO of The Small Business Company, a New Zealand based agency that specialises in helping banks communicate with small businesses through content marketing. He has written a number of books on small business principles and is a sought after consultant and conference presenter.

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