If you run a small business and accept paper checks, you might be wondering why you should switch to a digital payment system. If checks have been working so far, why start receiving payments online?
This article outlines the cons of paper checks and why it’s beneficial for your small business to go digital.
Many small biz owners are cutting costs related to physical checks and increasing revenue by making it easier for customers to pay and stay current with digital payments.
But beyond saving check-processing costs, abilities like recurring billing, automatic payment reminders, and Customer Relationship Management (CRM) are a few of the money-saving features to expect from a comprehensive digital payment system like Finli.
Top 4 Cons of Paper Checks and Why a Digital Payment System is Better
Checks Are A Useless Expense
Receiving checks from your clients may sound like a trivial expense. After all, many small businesses use the same supplies and accounts that we use for personal expenses. But did you know that the cost of processing a single check ranges from $1 to $26?
Those numbers may seem strangely high. But consider the time it takes to look up and print each customer’s name and billing info and send out a professionally formatted letter with a payment request.
Add to that the cost of office supplies, stamps, and envelopes, and it becomes clear how accepting paper checks can drag down your business’s bottom line.
You Cannot Set Recurring Payments with Paper Checks
Did you know that payments that are not recurring are three times more likely to be late? And such late payments can result in a cash flow problem. Funds that you might otherwise use to improve your business just aren’t there for you to reinvest.
Take advantage of recurring billing with a digital payment platform like Finli. Easily set up memberships, subscriptions, and recurring invoices without extra software or an assistant.
These measures alone have been shown to triple the number of on-time payments. This ultimately puts more cash back into your businesses.
Digital Payments are More Convenient than Paper Checks
Your clients are likely just as busy as you are. Taking time out of their day to manually write out paper checks, while ordinary, might for some feel like a big ask. With a digital payments solution, you can meet your customers where they prefer to do business.
Finli automates payment reminders online. And, in addition to email, you can even text your invoice using the convenient Pay By Link feature. Just send an SMS with the link, and your client taps to pay.
Paper Checks Offer no CRM
Customer Relationship Management, or CRM, may sound like a new concept for some small business owners. But it’s an important tool that lets you manage and track your customers’ data. It’s crucial for the growth and development of your business.
While various external apps let you manage customer information, Finli provides CRM services directly through its payments interface. This gives you access to various customer data and lets you engage with clients based on that info.
Try sending your most active clients a targeted promotion. Or send special offers to other customers who’ve been on time with payments. Send a quick Pay By Link to any past due customers. Such features help you manage and grow your growing customer base while increasing the reliability of all your payments.
Paper Checks No More – Online Payment Management System Saves Time and Money
Finli offers a simple-to-use payment management system with significant advantages over paper checks. Beyond direct savings on check-processing costs, such a digital payments solution provides further advantages through recurring payments, email and text message convenience, and a suite of CRM tools to personalize customer engagement.
Maybe that’s why more and more small businesses are ditching letters and envelopes in favor of Finli’s cost-saving solution to digital payments.
