But businesses that don’t optimise their method of accepting payment commonly create a number of ongoing problems for themselves.
1. Late payments
2. Additional admin and wasted time
Failing to automate those parts of the payment process that can be easily automated. Globally, the average small business spends 4.9 hours per month on payment reconciliation – a task that can be easily automated if you have the right accounting systems in place, such as Sole App.
3. Unnecessary stress
In the best case, these issues are frustrating or upsetting. And in the worst case, they can stop business growth entirely, or drive you to insolvency.
But you can solve them. All it takes is exploring which payment method works best for your business model and customer base.
How to optimise your payments
When it comes to collecting payment from your customers, there are several online payment options available to you, other than manual bank transfers:
- Direct Debit
- Instant bank payments (using open banking)
- Credit or debit cards
- Digital wallets
The table below explores the pros and cons of each of these methods, to help you pick what’s right for you.
|Manual bank transfers
|Direct Debit (using our payments partner GoCardless)
|Instant bank payments (using open banking)nstant bank payments (using open banking)
|Credit or debit cards
|Digital wallets (e.g. PayPal)
Optimise your payments today
Late payments, and the time you spend on payments admin, aren’t one-off problems. They reoccur every billing cycle and cause ongoing issues. The sooner you address the real cause of these problems – by choosing the right payment method to offer your customers – the greater benefit you’ll receive.
Sole connects with several major payment platforms, including GoCardless (for Direct Debit and instant bank payments).