I have been in business for a number of years and over time our handling of receivables has become more relaxed party due to personnel changes and not having a full time bookkeeper.
I do offer credit to established customers and I have virtually no bad debts (0.1 %). We also accept payment by credit card and over the years the percentage of people paying by credit card has grown and so I pay a fair amount of fees each month.
For a number of years anybody wanting to pay by credit card basically paid COD and those with terms would send cheques. Unfortunately over time customers are taking longer to pay and those with terms are now paying with credit cards so they are getting the benefit of terms but I am also losing on the fees and cash flow is getting tight.
I am wanting to revert back to my old ways and start to enforce paying COD if they want to pay by credit card. I am curious how other people handle this. I find a number of my suppliers accept credit cards for payment on account in 30 or 60 days (like I am trying to get away with) so I am wondering if this is becoming common practice.
If I am going to give up 3% then I would rather get my money now! Any thoughts?
I do offer credit to established customers and I have virtually no bad debts (0.1 %). We also accept payment by credit card and over the years the percentage of people paying by credit card has grown and so I pay a fair amount of fees each month.
For a number of years anybody wanting to pay by credit card basically paid COD and those with terms would send cheques. Unfortunately over time customers are taking longer to pay and those with terms are now paying with credit cards so they are getting the benefit of terms but I am also losing on the fees and cash flow is getting tight.
I am wanting to revert back to my old ways and start to enforce paying COD if they want to pay by credit card. I am curious how other people handle this. I find a number of my suppliers accept credit cards for payment on account in 30 or 60 days (like I am trying to get away with) so I am wondering if this is becoming common practice.
If I am going to give up 3% then I would rather get my money now! Any thoughts?
via Small-Business-Forum.net http://www.small-business-forum.net/managing-your-business/9702-credit-terms-accepting-credit-cards.html
Aucun commentaire:
Enregistrer un commentaire