Increase Small Business Income With Check Software

Increase Small Business Income With Check Software

Increase Small Business Income with Check Software
It's not easy being a​ small business owner .​
Things that are minor bumps in​ the​ road for big companies can be major hurdles for the​ small business .​
An inventory shipment delay,​ for example,​ is​ no big deal if​ you're a​ major retailer or​ e-tailer .​
That same delay,​ though,​ can negatively impact a​ small company's relationships with its customers and ultimately cost that business money .​
If a​ small company provides goods or​ services to​ other businesses,​ the​ loss of​ one or​ two customers can mean the​ difference between making a​ profit and taking a​ loss .​
Such is​ not the​ case for major players in​ the​ business-to-business marketplace.
Possibly the​ biggest factor in​ whether or​ not a​ small company survives and thrives is​ whether or​ not it​ collects business payments in​ a​ timely manner .​
a​ small business is​ often at​ the​ mercy of​ its customers or​ clients to​ make timely payments .​
When the​ checks don't arrive in​ the​ mail,​ the​ company can experience a​ cash flow crunch - or​ even a​ crisis - that can leave it​ unable to​ make payroll or​ meet its other financial obligations .​
Even when a​ system is​ in​ place to​ generate a​ timely invoice,​ finance personnel often struggle to​ collect on​ those invoices .​
In a​ business-to-business transaction,​ the​ small business may be dealing with a​ large company that pays at​ 60-days or​ even 90-days .​
In a​ business-to-consumer transaction,​ there are simply customers who pay late or​ not at​ all .​
In the​ worst-case scenario,​ checks never arrive or​ bounce,​ leaving the​ small business to​ try and collect on​ the​ debt .​
Understandably,​ this process is​ uncomfortable for all parties,​ and has a​ negative impact on​ business income.
For all these reasons,​ small businesses are turning to​ check software to​ increase their business income and lower the​ incidence of​ non-payment .​
Essentially,​ this check software provides a​ mechanism to​ accept a​ customer's check payment by phone,​ by fax,​ or​ via the​ Internet .​
Over the​ phone,​ the​ person taking the​ payment simply requests the​ customer's bank routing number,​ checking account number,​ and check number .​
Accepting payment via fax involves asking the​ customer to​ fax their written check into the​ company .​
Check payment over the​ Internet requires the​ customer to​ look on​ their check and enter the​ routing number and checking account number into an​ online form .​
With the​ information from the​ customer's check,​ a​ small business can convert the​ paper check into an​ electronic check,​ the​ amount of​ which is​ deducted from the​ customer's checking account .​
The difference between processing paper checks and electronic checks is​ that electronic checks clear or​ bounce within a​ day of​ submission,​ whereas it​ can take up to​ two weeks for paper checks bounce,​ be re-deposited,​ and bounce again .​
The benefits of​ check software are numerous,​ but the​ most immediate effect is​ that a​ small business can increase its cash flow .​
In addition,​ check software increases the​ satisfaction of​ customers,​ since customers like being able to​ pay by check but don't like to​ have their orders held until their checks clear .​
This can help boost sales and increase repeat business .​
Next to​ increased cash flow and business income,​ businesses appreciate that check software decreases the​ number of​ returned checks .​
When collections have to​ be made - either because of​ late business payments or​ because of​ bounced checks - it's much easier and more reliable to​ be able to​ take the​ information over the​ phone,​ convert the​ check into electronic form,​ and see that it​ clears within a​ day .​
When it​ comes to​ the​ tools that small businesses need in​ order to​ succeed,​ electronic check software is​ key.

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