6 Tips on How Merchants Can Get Paid Faster

For merchants running a small business, chasing down unpaid invoices, and sending late payment reminders can impede growth. Late payments aren’t just an inconvenience – it’s an opportunity to lose money, vendors, and enough cash flow to slow progress on other projects.

Getting paid on time or early can alleviate this problem. Below are some practical tips that merchants can implement to get paid faster, improve cash flow, and boost their business.

3. Reward Upfront and Early Payments

Merchants who offer a discount for early payments give vendors some financial reward for doing business with them and it ensures that the merchant is paid on time.

4. Enforce Late Fees

Merchants should draft clear payment terms (based on state regulations) in their vendor agreements, including the percentage or flat rate of the late payment fee. This way clients can be held responsible, and merchants can keep their cash flow moving.

5. Accept Multiple Payment Types

Merchants who offer many convenient payment options to their vendors have a much better chance of getting paid on time. Accepting cash, card, ACH, and digital payments allows clients to pay in the manner that works best for them. In turn, merchants get paid faster!

6. Use Integrated Payments Software

Merchants who use integrated payment processing and accounting software have a better view of the financial landscape. System integration allows streamlined and automated payments to occur and promotes better business operations and increases case flow.