The success of a business lies in many factors – one of these is your payment options. Your systems of payment can make or break your transactions with your customer. There are a lot of times where customers would opt not to engage their selves in a business transaction upon discovering a company’s payment option. This is something you should avoid in order to cater to as many customers as possible. And as we all know, more customers means more cash.

There are innumerable points to ponder on in choosing your company’s payment option. Here is a list of some considerations to make sure that you will not only make the right decision, but the best one.

• Identify how your system should work depending on your enterprise. First and foremost, consider what you do. Do you provide goods? Or services? Do you provide these to consumers? Do you provide these to sellers in the form of retails? Do you provide these to other businesses? Or do you provide these to a company?
• Consider what you need and where you can acquire these needs. To successfully manage the whole system, identify what resources you should have and you should access. Should you need to visit the bank? Where would the nearest bank be? Does your client have access to the bank? Does your customer know how to make transactions in the bank? Should you opt for cheques? Would this make it easier for your customers? Would this make it easier for you?
• Take note of the time that you and your customers need in order to fully carry out your transaction. Never forget that time is of the essence. No customer, nor business, is willing to allot a very long time in carrying out transactions. There are some credit card offers that automatically download statements into software accounting packages. This way, your customers can ensure that no matter how they pay, their bank statements and their accounting records are coordinated.
• Make use of various technologies. How should your system work? BPAY enables businesses to transact payments through a banking facility of a financial institution. It can be conducted online or through telephone lines. This system, however, is only available to companies who are registered BPAY billers. For years, this system has worked with a number of institutions in order to provide an easier and simpler sign-up process, especially for small enterprises. Small businesses believe that this system adds credibility to their enterprise.
• On the other hand, an Electronic Funds Transfer or EFT is a system of direct transferring of funds from one account to another. It can also be carried out through telephone lines or computers. This system allows an instantaneous movement of money among the involved parties. Before implementing your payment option, be sure that you know how it works.
• Last, but certainly not the least, aim for credibility and customer satisfaction. The efficiency of your business and the welfare of your customers should always be on the top of the list.

Credit and Financing

Capital is the monetary requirements of a business firm to operate. So whether you are just setting up or already running your business, the source of capital is an important consideration.

Credit and owner’s equity are the conventional sources of financing among businesses. Since every firm starts out small, seldom do investors inject money to the enterprise. Additional and amenable options, however, become available as the business grows. It is important for a business to have a steady cash flow. Aside from the recurring operating expenses, other payments such as tax and other duties arise. Most of the time, the owner’s equity becomes inadequate to support the growing needs of the business. It is therefore important for the owner to be familiar with the terms, benefits and risks of credit.

Your Personal Credit Line

Using your personal line of credit is a convenient way of financing the business. You can use your credit card or borrow cash from your family and friends to suffice the expenses. However, with a growing business, these methods have immediate limitations. These methods are optimized for personal use and emergencies so in time, it becomes inadequate to support the growing needs of the enterprise.

It is important to consider certain points when using personally borrowed money or your credit card. Below are some questions you may ask to gauge the extent of your personal credit:

• Until when can the cash support the enterprise? How much and how fast are you spending the money?
• Will more cash be available?
• What are the terms of repayment?
• When are your friends and family expecting their money back? Do they have plans for this money?
• What will happen if the debt is not repaid? What will you lose?

Business Loans

A business loan is an amenable option when starting your enterprise. You can also avail of business loans to expand the business. There are many institutions that offer loans depending on your business scale. It is important to familiarize with their terms so you can make the most of their offers. It is best to visit the banks and offices so you can discuss the options for your business.

It is also important to discuss these options with your financial advisers. Seek the opinions of your accountant and auditor when getting a loan. They know best if your business can repay the loan in time. Moreover, talk to your lawyer to verify the legal implications of getting a loan.

Imposing an Overdraft

Overdrafts are a form of financing that allows business to make purchases using their accounts even if the available balance is not enough. Overdrafts are a form of short-term funding that businesses can take advantage of. However, it is important to always review the terms and status to avoid incurring unnecessary expenses.

When deciding on external financing, it is important to have a long-term plan. This will give you an idea of how you can repay the loans you will avail. It will also ensure you that the loan will go to the business and not your personal needs. .