Merchant Services Will Improve Business’ Cash Flow
As a small business owner just getting your venture off the ground, you have many decisions to make. One of those will be whether to accept credit cards or not. There are definite advantages to accepting credit cards. One of them is that it will boost your cash flow. Read on to learn how credit cards can do this, and why it’s a good thing.
Cash Flow: A Brief Introduction
The term “cash flow” refers to the money moving in and out of your business. There are two types of cash flow: positive and negative.
Positive cash flow means that a company’s liquid assets (assets that can easily be converted into cash without losing too much value) are increasing. Increasing liquid assets enable a firm to settle debts, pay expenses, and reinvest in the business. Negative cash flow, on the other hand, shows that a company’s liquid assets are decreasing. Decreasing liquid assets are a sign that the firm cannot settle its debts or expenses (and reinvesting in the business becomes out of the question).
Credit Cards and Positive Cash Flow
Accepting credit cards with a merchant services account can boost your cash flow, and there’s evidence to prove it. According to the accounting technology provider Intuit, 45% of small businesses in the US accept credit cards. And while they’re not in the majority, they’ve definitely got an edge over their counterparts that don’t take plastic. Eighty three percent of those businesses that do accept credit cards say they make more sales than they would by accepting other payment methods. Fifty two percent of the small businesses and merchants that accept credit cards said they earned at least an extra $1,000 per month. Seventy four percent of those small businesses said they received payments faster and had fewer bad debts as a result of accepting credit cards.
Making the choice to accept credit cards might also help you secure crucial bank loans. When small businesses apply for bank loans, the lender wants to know that the borrower has a strong cash flow. A strong cash flow means that the borrower will be able to repay the loan. So, by accepting credit cards, you boost your cash flow. And a higher cash flow means that you’ve got a better chance of being approved for a loan to help expand your business.
Power Pay Payment Processors: Helping You Accept Credit Card Payments
Do you want to boost your cash flow by accepting credit card payments? Contact Power Pay today. Our technology enables businesses to accept all credit card types. The setup is fast – after calling us, you can accept credit card payments within a day. And customers won’t have to leave your website in order to complete the transaction – everything stays on your site. Power Pay’s rates are very low, and you don’t have to worry about hidden fees. Our customer merchant service representatives are professional and courteous, and they aim to resolve any issues quickly. Call us today at 1-800-483-8815 to learn more.