CARD PAYMENTS
TALK MONEY
Cash, cheque, charge Geraldine Wilson, managing director of WorldPay Zinc, a mobile card payment company, explains how SMEs can manage their cash flow more effectively through card payments
2013 statistics from September • Total spending on plastic cards is £45.8 billion – of that £32.2 billion is on debit cards • 951 million purchases are made on plastic cards • There are 36.3 million cards with contactless functionality, and more than 164,000 contactless terminals
mall businesses, especially those with less than nine employees, have always formed the backbone of the British economy, generating more than £400 billion in turnover each year. However, it’s these small businesses that have been hit the most by the recession and are still feeling the economic squeeze. Keeping a business healthy during turbulent times is always a concern, but many small business owners struggle to manage their cash flow effectively. One of the biggest cash flow headaches is late payment, which can seriously impact the financial wellbeing of your business. It’s essential to keep enough money flowing into your business to pay suppliers, cover bills, order stock and to pay your own salary. Although small businesses and mobile workers have been paid by cash or cheque historically,
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accepting card payments will help manage your cash flow in three key ways: INCREASING SALES Businesses that take card payments have the opportunity to increase sales, as customers are not limited to the cash that’s in their wallets. In a recent WorldPay Zinc survey, an overwhelming 87% of people said that they are likely to spend more per transaction when paying by card. An increase in sales, of course, translates to more cash in the bank and a greater buffer for when business is slow. RECEIVE PAYMENT UPFRONT Having a card payment facility allows you to get paid by a customer in person, even if they don’t have enough cash on them. However, if you are unable to get payment up front, you should consider being able to take card payments
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