Card Payments Overtake Cash

//Card Payments Overtake Cash

Card Payments Overtake Cash

Card payments overtake cash and it’s signalling a new approach for businesses of all kinds. Cash is dead – or at the very least looking a little poorly. According to new stats, card payments have overtaken cash for the first time in history. It marks a changing of the guard in the way we use money and pay for goods, so how will businesses react?

A new era for card payments

Card Payments Overtake Cash

Card Payments Overtake Cash

The impact of a cashless society is being felt almost everywhere. Even Big Issue sellers, are having to up their game. One, for example, recently hit the headlines when he saw his sales rocket after he invested £30 in a card reader.

Businesses of all kinds will also have to up their game. Those retailers which do not accept card payments will have to find a way of doing so. While this might once have been a mild inconvenience, it is now becoming a serious issue.

Equally, more and more businesses will have to consider accepting card payments with a card payment terminal for smaller transactions. Customers expect it and, if they can’t find it with one shop, they will be more likely to look for another.

More and more people are using credit cards for business, with the growth in products like “Apple Pay” you do not even need to carry your credit / debit card with you.

Understanding customers who pay cash 

The move away from cash, though, is far from universal. While millennials and younger adults are quick to adopt new payment technologies such as cards or mobile payments, older people are still likely to stick with what they know and trust. This means retailers will need to adjust their offering to suit different demographics and customer groups.

The key for the future of retail is to ensure everyone can pay in whichever way they want to – be it card, mobile payments or cash. If you can’t, you not only miss out on their custom on that occasion but also, potentially, in the future.

Using a merchant loan advance

Even so, there are a number of advantages to moving people towards credit and debit card payments. One of these is that it opens you up to alternative forms of finance such as a business cash advance.

This can be a great way to overcome a short-term cash flow crisis or make an investment in new equipment or technology by securing a cash advance against your credit or debit card revenue.

Here’s how it works. A merchant loan advance provider will look at your historic sales records. They only focus on revenue from card payments. So, if you’re seeing more of your revenue coming through card sales, the good news is that you’ll be able to access a larger sum. They will then use this to estimate your future sales performance.

The amount of money you receive can vary but will often depend on how much money you bring in each month. So, if you have monthly sales of £50,000 through your card machines, they might be willing to advance that sum.

They will then take a percentage of your future card sales until the sum has been paid off. It’s a flexible way of managing the repayments because the amount you pay varies with the scale of your income.

So, for example, if you have a good month, your payments will be higher and you’ll pay it off more quickly. If sales dip for some reason, so will your repayments, making it much more affordable.

This is becoming an attractive option for businesses of all kinds which accept card payments, and also experience seasonal slumps. The pub and restaurant sectors, for example, see it as a good way to overcome the post Christmas slow-down. With everyone attempting to get fit and save money after Christmas, January is traditionally a month of austerity. That’s good news for the nation’s health but not so good news for the owners of pubs.  

Alternatives to bank loans

It also provides a more accessible option than a traditional bank loan. Since the financial crisis, banks have become increasingly reluctant to lend to small businesses. If you have a bad credit history it can be almost impossible to get a loan at an affordable rate. A merchant loan advance, therefore, offers an attractive alternative. This is an advance – not a loan – so a bad credit history isn’t quite as much of a problem.

As with any financial service, though, it’s a good idea to check the terms and conditions and make sure you understand the full costs of the service. A merchant loan advance can be quite expensive, but the full costs will vary depending on the provider. The more you shop around and do your research, the easier it will be to get a decent deal.

Do I need a PDQ machine

As card payments have overtake cash it makes sense for any business now to have a PDQ machine. Once you can start processing credit and debit card payments your working capital for the business should flow easier. After six month of using the PDQ machine and taking payments from your customers you can apply for a merchant loan advance.

The process to apply for a merchant loan advance is simple. Complete the online enquiry and we will do the rest.

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By | 2019-01-11T14:02:15+00:00 January 9th, 2019|Card Payments Overtake Cash|0 Comments