Financial services are crucial to running a small business profitably, efficiently and expansively. However, deciding on what specific services best suit your small business is not easy, particularly as financial needs change and service offering from both non-traditional financial service and traditional bank firms evolve. Considering contacting one of the top factoring companies like Orion Business Capital, LLC to get professional advice.
It is very difficult to predict all that is needed for the future. The good thing is that it’s possible to know the basic services required now and those that might be needed in coming months. One perfect approach is to review the various types of transactions that your business transacts and then evaluates for managing the business cash position.
Receiving Customer Payments
Come up with a plan of how you will receive payments and also consider the steps to be used so as to turn receipts into cash.
Forms of Payment Accepted
Does your small business accept money (currency and coins) charge cards, paper checks, e-checks, debit cards, credit cards and prepaid cards?
Methods of Receiving Payments
What methods do you use to accept payment, process it and settle transactions? Do you have to meet your clients’ face-to-face, temporary locations, remote kiosk or customers’ website? Do customers pay through electronic invoice systems or do they have to enter payment information through a digital shopping cart.
Number of transactions
Does your business generate low volumes of high-dollar sales, small dollar or a combination of the two? What is the average number of transactions does your small business process per month? Is there a busy season where you are forced to transact a lot of transactions in a short duration of time?
Dollar amount of transactions
What is the average dollar amount of every transaction? Is there a need for your small business to have a safeguard to accommodate a lot of money is single transactions?
Time, ease, price and speed of settling transactions
How long must you wait to receive money from your customer or client? Are there many steps required to facilitate payment processing? What are the fixed charges to accept and clear customer payments?
Processing Vendor Payments
Have a plan on how you pay vendors and what is needed to ensure that there is an accurate and timely payment?
Methods of Payments Accepted by Vendors
What are the forms of payment do vendors prefer? Are there special services required so that you can be able to facilitate payments from overseas vendors?
After you have defined what your small business requires, it’s now time to search for solutions.
You might consider going to your local banks to seek help for all of your financial services that your small business requires. Opening a small business account may be a good solution for your business has only a few corporate clients.
In some cases, you might discover that a non-traditional financial service is all that your business requires. If you do not want to apply for business loans so that you can expand your digital or physical presence, you can obtain the funds from the crowd-funding site for a unique project or from customers from equipment bought.