Amidst the global pandemic, the merchant services industry is trying its best to help businesses sustain and maintain a steady cash flow. In fact, 82% end up closing the curtains on their businesses because of a bad cash flow. Moreover, 29% of businesses end their venture simply because of an absolute absence of cash.
That’s the problem right there! However, we’ve brought you a concrete solution and the ball is in your court. Here are the 3 decisions which can help your business attain a huge cash flow in the long run –
1. Enroll in a Merchant Cash Discount Program
A cash discount program allows you to offer a discounted price to your customers on cash payments. They get an option to either pay with cash or a card. What’s in it for you?
- Cash payment processing is easier than credit card processing.
- A cash discount program is legal and profitable in many ways.
- A compliant cash discount program means greater sales.
- It’s a win-win situation as you & your customers don’t have to pay the credit card processing fees.
How Can a Merchant Cash Discount Program Impact Cashflow?
Apart from the above-mentioned features, the mainstay benefits of a merchant cash discount program are as follows:
Credit card payments carry with them a high potential for suffering chargebacks. Also known as ‘friendly frauds’, chargebacks hamper your business reputation in the long run. Too many chargebacks compel merchants to opt for a high-risk merchant account. High credit card sales make you liable for credit card processing fees which can be avoided using cash payments.
A cash discount program can save you loads of money while accumulating cash piles for you. Liquidity is the need of the hour during the COIVD-19 pandemic and chargebacks have become a troublesome factor. Offering cash discounts to customers would mean conceding higher amounts of cash payments. This will cut off the intermediary banks involved who charge credit card processing fees from you.
Avoiding Payment Processing Charges
Not having to pay merchant payment processing service fees is a boon for every business in these tough times. Cash discounts help you achieve this with sheer ease. Without any added costs, your entire cash payment goes into your cash drawer. Your cash flow will be up and running while becoming immensely streamlined. Savings and liquidity are what a cash discount program promises.
Experiencing Greater Cash Flow
Providing cash discounts to your customers means they will have to pay a reduced price for the items they purchase. If there’s a high ratio of card payments being made, your business will incur a lot of unnecessary processing costs. Such costs pile up and come back again in the future to hit you with a magnified number! Cash discount programs are meant to ease this burden on businesses and enhance the cash flow.
Fascinating Your Customers
Each and every benefit of providing cash discounts results in your business experiencing a better cash flow. This one’s no different! Customers just love discounts, no matter which kind of discounts these might be. As soon as the word gets out that your business is selling certain items at a reduced price, be prepared for the rush! Customers will storm into your store or e-commerce website and make more purchases from you. Your revenue generation will be hiked up while the cash flow is busy raising itself up.
All in all, the customers are the decision-makers. They will have the option of both cash and card payments. Hence, there won’t be any disappointment from their end. Also, the customers who’re regular card users will also give it a thought to carry cash next time!
2. Sign Up for a Merchant Cash Advance Program
Debts looming and lack of funds causing harm?
Simply join a merchant cash advance program!
Merchants and businesses in need for urgent funding can rely on a cash advance program. Instead of waiting for banks to approve your request for a traditional loan, an instant merchant cash advance would do. In this program, merchants get a lump sum amount in advance. One can repay the same from a certain portion of the sales generated. A merchant cash advance is granted based on the credit card sales you make.
As instant as these can get, cash advances are approved within a couple of days. Also, a very negligible amount of documentation is involved. No doubt these come at higher interest rates than usual, but they’re the best solution for a short-term need for quick cash.
Benefits of a Merchant Cash Advance Program
- Quick funds
- Convenient Repayment Schedules
- No credit history required
- No collateral necessary
Features of a Merchant Cash Advance Program
There are many cash advance features and characteristics merchants should be wary of. Things like principal amounts, factor rates, repayment tenure, frequency of the payments, deductions, etc. are some of these. Here’s a list of the ultimate use cases of cash advances:
- Support your cash flow
- Clear debts
- Increase your working capital
- Purchase inventory at a deep discount
- Fulfill unexpected expenses
3. Choose Your Merchant Services Provider
Settle for a provider which offers a flexible merchant account along with various merchant program services. At Patel Processing, we deliver all-inclusive merchant services to cater to every merchant’s varied needs. We provide a cash advance program, cash discount program, high-risk processing, crypto payment processing, credit card processing, ACH payment processing, and much more!