We are all aware of the different circumstances that the last few years have brought to our doorsteps and if there is one thing that we all need to take into consideration is flexibility. We have seen many times that businesses have struggled to collect on fulfilled orders or purchase orders from clients because cash is tight and the other costs of doing business doesn’t allow flexibility of your client’s cash. When your business accepts payments through card transactions, you allow your customers to pay via credit card which allows you to collect payments faster, reduce your DSO (Day Sales Outstanding), and have a stronger relationship with your customers. This allows you to continue to conduct business and keep your other costs of doing business minimized and creates flexibility.
Another flexible option for your business is for your customers to pay through a method that they would prefer. Many businesses are realizing the power of using business purchasing cards. Our friends over at American Express state that, “Most business owners assume they’re doing a disservice to their supplier by asking to pay with a card vs. check. However, it’s many times just the opposite as most businesses today are looking to drive improvements to their working capital and also efficiencies within their back-office processes.”
“Many times, there can be a very fair value exchange when the buyer is willing to accelerate payment to the supplier. More and more merchants are noticing their A/R aging with work from home and their customers trying to stretch things out to better manage their working capital. The win-win is the buyer, when properly set-up on a charge card program such as American Express can often still receive 30-45 days of a float benefit while the supplier can often reduce their pays sales outstanding by 15-20 days. Working with the right merchant partner can also create the right set-up where accepting these transactions on larger amounts can be done the right way.”
As you can tell, if you allow your customers to accrue points, you as well can benefit from using the right type of credit card. To learn more about this, send us an email to let us know you’d like help optimizing your purchasing cards.