How B2B Companies Are Beating Inflation
August 22nd, 2022
How B2B companies are beating inflation might surprise you. Traditional wisdom is to avoid accepting credit card payments if you are running a B2B company. In large part, I agree, especially if you accept credit card payments past 30-days. However, making one slight adjustment in your payment terms can be a game changer.
How? If your day’s sales outstanding (DSO) on invoices averages 45-days, you can accelerate your cashflow by 30-days if you offer 15 days net on credit card payments.
This cash acceleration is a huge benefit, but you might be asking yourself about the cost of a 2%-3% processing fee. The good news is that you can eliminate up to 90% of the processing fees when you factor in inflation, the tax deduction on paid processing fees, and a discount from the processor when you use a gateway.
I think it is important to also factor in the benefits to your customers. Many like the flexibility of using a credit card and also enjoy the points that credit cards provide. Additionally, the customer can pay the balance from their transaction in 30-days, helping with their cashflow. It’s a win-win for everybody!
If you’d like to learn more about how your business can beat inflation and accelerate cashflow, click the link below for a free, no obligation assessment.