To stay solvent, it’s critical to have more money coming in than going out, whether that means increasing sales or finding new methods to minimise costs.
In this post from payments network Rapyd, we’ll look at four key ways that the appropriate payment processor can help you improve your business finances and avoid a cashflow crisis.
Top 4 tips to improve cashflow
Read on for all the tips or jump straight to the most relevant one for your business:
1. Cut fees to keep more from every sale
2. Make it easy for your customers to pay you
3. Consider raising your prices to fight inflation
4. Go global and grow your sales
#1 Cut fees to keep more from every sale
If your business takes card payments, there could be a way to cut costs. Did you know that you don’t have to go with the default payment processor offered by If your company accepts credit cards, there may be a chance to save money. Did you know that you are not required to use the default payment processor provided by ecommerce systems such as Wix, WooCommerce, and Shopify?
Most reputable payment processors provide plugins that can help you reach more customers while also lowering the transaction fees you pay when people buy from you online – and they are simple to set up.
Look around for a payment processing rate that is competitive and has cheap transaction fees. If you already have a provider, don’t be scared to contact them and renegotiate your cost. Rapyd can save you up to 80% on processing fees in Ireland and the United Kingdom.
Another factor to consider is how long it will take you to receive your funds. You should ensure that the settlement conditions are appropriate for your company. Rapyd allows you to save money on processing fees and receive a free next-day settlement.
#2 Make it easy for customers to pay
To keep your cashflow strong, make it simple to get paid. Choose a payment processing provider that takes all possible payment methods from your consumers. Customers today want to utilise their preferred local payment methods and want options.
Customers want to use apps and ewallets to conduct contactless payments with their phones. Rapyd allows you to accept hundreds of payment options, including cards, digital wallets, bank transfers, and cash, allowing your consumers to pay using the means they prefer.
Other methods exist to make it easy for clients to pay. Invoices, payment links, and automated billing can all help to expedite payment. Rapyd allows you to send invoices and simply add a payment link to SMS, WhatsApp, emails, and wherever else a link may be pasted. Rapyd supports the Faster Payments System in the United Kingdom, allowing nearly anyone with a bank account to make real-time payments. Rapyd also provides subscription payment automation and recurring billing solutions.
#3 Consider raising prices to fight inflation
Is inflation eating away at your profits? Without upsetting your consumers, bite back. Everyone is battling with inflation right now and looking for methods to save money by decreasing spending. Negotiating payment terms with suppliers is one approach to keep cash on hand for longer. With extra time to pay, you may better manage your available resources. Inventory management is critical to the health of your organisation since being caught with too much or too little inventory is a stressor.
Save money by looking for more economical supply sources, which are commonly found in other nations.
Another option to consider is raising your prices. It’s not always popular, but it’s a sure method to make more money. To avoid resentment, notify your clients ahead of time and explain the logic behind the price rise. In this environment, it might be as simple as sharing the increased supply costs rather than bearing the entire weight of profit loss.
#4 Go global to grow sales
Prior to the pandemic, 58% of small firms had overseas clientele. With internet sales surging, it’s time to rethink your business strategy and decide whether going global is good for you.
You will be able to access millions of new customers by permitting cross-border commerce. Rapyd can enable you accept payments in over 100 countries and pay out in over 190. Rapyd will help you keep foreign exchange expenses low and offer a customised checkout experience in sixteen languages with locally approved payment methods if you’re ready to extend your business worldwide.
Another intelligent strategy to boost your cashflow is to expose your company to a new world of clients.
Final thoughts
There’s no denying how tough it is to be a small business owner now, so keeping on top of costs is more crucial than ever.
Here’s a summary of our top tips:
- Remember, the easiest way to keep cash flowing is to increase your sales. Reducing transaction fees and business expenses also help.
- Keep the money coming in by accepting new and popular payment methods, like sending invoices and payment links.
- Are your prices in line with recent increases in inflation? Update your prices without alienating your customers.
- Grow your business by expanding into new markets and even new countries and maintain a healthy cashflow for your business.
Rapyd has the tools and expertise to help you grow your business and avoid cashflow problems. Learn more and get started at Rapyd.net.
