Businesses today are using business credit cards more and more to buy and sell goods and services. Even though this is a trend, there are still some businesses that do not accept credit cards from business customers. In reality, if this kind of vendor wants to do more business and get more customers, accepting business credit cards goes from being a nice-to-have to a must.
Accounts receivable is not only a bad trap, but it also starts a cycle that makes things worse. If a vendor doesn't accept business credit cards, they often give their customers credit in order to keep their business. Even though this may be a necessary business practise, it puts too much strain on the finances of the business: Unnecessary, because you can keep your customers and reduce your cash flow risk at the same time by accepting business credit cards.
There are many benefits to accepting business credit cards, such as:
How to Make More Sales: When your customers can buy what they want right away, most of them will. When they make that purchase right away, your sales go up. If your customers can pay with their business credit cards, a simple look around in your store or on your website could turn into a sale.
Boost your cash flow. High accounts receivables can be a problem for many merchants who don't have enough cash flow to support growth. One of the quickest ways to get your business out of this trap is to start accepting business credit cards. Instead of billing your customers, start billing their banks. When you accept business credit cards, the money from the sale gets to your bottom line much faster than if you had to wait for the money to be paid back.
Put Smiles on Your Clients' Faces: Customers got business credit cards for a variety of good business reasons and will want to use them. If your business can't handle business credit card transactions, don't let your clients look for other suppliers. When business customers are looking for a supplier and want to pay with their business credit cards, they will keep looking until they find one who accepts them. When you accept business credit cards, you put yourself in the running for their business, which is good.
Put a smile on the faces of your financial staff: When you decide to accept business credit cards as payment for purchases, your accounting department will be very happy. They won't have to deal with paperwork or worry about getting paid on time for all the money they owe you. If you compare collecting past-due accounts from many different clients to collecting from the few merchant services that issue business credit cards, the latter is a walk in the park.
You may need to accept business credit cards to improve and grow your business relationship with your clients. It gives your customers the chance to pay you in the way they prefer and gets you out of the accounts receivable trap at the same time.
