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Tag: Payments and Collections

  • Why Flexible Payment Systems Are Now a Business Essential | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The right payment solution can accelerate growth, while the wrong one can stunt it. For small businesses, nonprofits and even large enterprises, how quickly and reliably money moves through the organization shapes everything from day-to-day operations to long-term strategy.

    Business leaders must regularly evaluate whether their payment solutions can keep pace with evolving demands or risk falling behind.

    Cash flow is the lifeblood of any organization. Whether it’s a small business handling seasonal fluctuations, a nonprofit managing through a grant cycle or a large corporation coordinating purchases across multiple departments, the ability to effectively manage incoming and outgoing funds is fundamental.

    Payment delays, mismatched billing cycles and inflexible payment terms can all create unnecessary strain, limiting a business’s ability to invest in new opportunities or respond to unexpected challenges.

    Related: Slow Payment Options Are Costing Your Business — Here’s the Alternatives of the Future

    Breaking free from operational bottlenecks

    Research reveals the operational realities business decision-makers face. According to a Morning Consult survey commissioned by Walmart Business, nearly 500 small business leaders reported spending approximately 40% of their workweek on administrative tasks.

    A significant portion of this time is devoted to managing spending, cash flow and reconciliation—activities that, while essential, can detract from core business functions such as serving customers, innovating and pursuing growth opportunities.

    For resource-strapped organizations, every minute spent on manual bookkeeping or chasing receipts is time lost driving the business forward. Yet many still rely on traditional payment processes that are rigid, slow and misaligned with their workflows, adding to the administrative burden. Today’s payment solutions must go beyond processing transactions to actively reduce operational friction.

    Related: Struggling with Finances? These Payment Solutions Will Save You

    Seamless systems, stronger performance

    Beyond cash flow, integrating payment solutions into everyday business operations can have a significant impact on efficiency. Traditional payment methods such as checks or manual invoices often require multiple steps for approval, reconciliation and record-keeping. Each additional step introduces the potential for errors, delays and increased administrative overhead.

    Organizations must consider how payment solutions fit into their unique workflows. No two organizations are alike; purchasing needs, approval hierarchies and accounting practices can vary widely depending on the industry, size and structure of the business. Solutions that are too rigid or too generic will fail to meet the specific requirements of a given organization, leading to workarounds that undermine efficiency and accuracy.

    Modern payment solutions are built for integration. When payment options are embedded into the purchasing experience — whether that’s through an online portal, a mobile app or in-store systems — organizations benefit from a seamless workflow that minimizes manual intervention.

    Features such as automated invoicing, real-time reporting and centralized record-keeping simplify the reconciliation process and make it easier for business leaders to monitor spending, comply with internal controls and generate accurate financial reports.

    Putting integration into action: Pay by invoice

    Flexible payment solutions, particularly those that offer extended terms or credit lines, can provide organizations with vital breathing room. By allowing businesses to defer payment on purchases — sometimes for 30 days or more — these solutions support better cash flow management and allow leaders to allocate their time and resources strategically. This flexibility can be especially impactful during uncertain economic times or periods of growth, when upfront investments may be required before additional revenue is realized.

    At Walmart Business, we recognized this need and recently introduced Pay by Invoice, powered by TreviPay. This offer enables eligible customers to access a business line of credit from TreviPay with 30-day net terms, allowing them to make critical purchases when needed and defer payment to better align with their revenue cycles.

    Such flexibility is no longer a luxury; it’s an expectation among business customers who must navigate complex, multi-location operations and fluctuating cash flows.

    The demand for Pay by Invoice is rooted in the desire for streamlined financial operations. By offering consolidated, detailed invoices, the solution simplifies expense tracking and reporting, making it easier for organizations to maintain oversight and accountability.

    The decision to fully integrate the use of Pay by Invoice into the Walmart Business experience across online, app and in-store channels was intentional, so customers benefit from a seamless, frictionless purchasing and payment process wherever they choose to shop.

    Related: What Sparked the Push for Flexible Pay?

    Looking ahead at the future of business payments

    As organizations continue to seek ways to operate more efficiently and adapt to changing economic conditions, the significance of flexible payment solutions will only grow. The broader trend toward digitization, automation and integration is transforming not only how businesses purchase goods and services, but how they manage finances, assess performance and make strategic decisions.

    For business leaders, understanding the available payment options and evaluating them through the lens of their organization’s unique needs is critical. Solutions that provide flexibility, transparency and integration can help remove operational barriers, improve cash flow and set the stage for sustained growth. Payment processes are no longer a back-office concern; they are a strategic lever for business success and future growth.

    The right payment solution can accelerate growth, while the wrong one can stunt it. For small businesses, nonprofits and even large enterprises, how quickly and reliably money moves through the organization shapes everything from day-to-day operations to long-term strategy.

    Business leaders must regularly evaluate whether their payment solutions can keep pace with evolving demands or risk falling behind.

    Cash flow is the lifeblood of any organization. Whether it’s a small business handling seasonal fluctuations, a nonprofit managing through a grant cycle or a large corporation coordinating purchases across multiple departments, the ability to effectively manage incoming and outgoing funds is fundamental.

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    Ashley Hubka

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  • How Online Payment Systems Can Take Your Business to the Next Level | Entrepreneur

    How Online Payment Systems Can Take Your Business to the Next Level | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    When we first started Vagaro, companies primarily relied on cash or checks as their main form of payment methods. Credit card technology was still in its early stages of adoption back then, and both customers and businesses were just starting to familiarize themselves with and trust this new form of payment.

    Fast forward to today. Now, preferring cash or check is less popular. The script has flipped — we have a world where instead of saying, “We don’t take credit cards, please pay in cash,” companies are saying, “We don’t take cash, please pay by credit card.”

    There’s a reason for this shift. The integration of online payment systems has unlocked considerable advantages for businesses, all while improving the overall experience for buyers.

    Related: How to Select the Right Payment Gateway and Payment Processor for Your Ecommerce Business

    The key to convenience and expanded sales

    When I created Vagaro, I envisioned a comprehensive, one-stop shop for our customers. To create that seamless customer experience, we were working on incorporating online booking into our solution. But as I spoke with my sister-in-law, a hairdresser and a big source of industry insight for the company when getting started, about my plans, she posed an important question:

    “What about credit card processing?”

    Integrating this feature into the platform made sense, but I knew nothing about how credit card processing worked. And when I started to call around, everybody talked about it in complicated terminology.

    Most people today are in the same boat I was in. They don’t understand how a hairdresser or other independent business, as well as credit card companies like Visa or Mastercard, each claim a portion of a customer’s payment. But they still want the convenience of payment integration.

    From the customer’s perspective, few people are carrying around cash or multiple forms of payment options. In today’s fast-paced world, consumers prefer processing transactions quickly, paying in advance and tracking their spending all in one place.

    Online payment integration makes transactions easier for businesses, too. They can sell more products or services more efficiently, including memberships, packages and gift certificates. They can accept deposits to reduce lost revenue from appointment cancellations and no-shows. And when payments are accepted on the same platform as booking, a company can know the profile of the customer, such as the services they book the most or products they tend to gravitate toward. This directly ties into marketing and upselling opportunities. If a company wants to send a VIP discount, they can do that if they know a customer’s profile and how/where they’re spending.

    Similarly, a company offering a product to a business, in most cases, will need to collect payments — the product should ideally include features to facilitate this process. As the marketplace shifts priorities to offering a smooth and comprehensive customer experience, payment integrations are now considered a necessity, and the trend toward becoming a one-stop shop is gaining momentum.

    Related: The Unspoken Financial Cost of Slow Payment Options

    More tip money, less awkwardness

    Looking strictly at the financial side, there’s a lot of money to be made from payment integration. It goes beyond simply expanding the variety of products sold; credit card transactions tend to yield higher tips, too.

    Imagine getting a haircut. If the customer is forced to pay in cash, that limits the amount they can tip based on how much money they have on them. However, with online payment processing in place, customers are able to tip as generously as they like. And if the business presents tip options — say, 15, 20 and 25 percent — the customer doesn’t have to try and calculate the tip in their head. It’s easier to click on the percentage and send it off without thinking about it.

    Online payment integrations can also remove awkward conversations that often happen around tips. When a hairdresser or other provider shows a tip prompt on the screen, it gives the customer a natural opportunity to tip. The provider doesn’t have to say, “Oh! And don’t forget the tip!” the way they might if the customer paid in cash.

    Additionally, online payment integration can make your solution a lot stickier — a product that generates revenue for its users becomes indispensable. If a company wants to increase dependency on its product and reduce churn, efforts should be focused on offering a solution or service that streamlines increased revenue.

    Related: 6 Hidden Ways That Paying by Check Is Hurting Your Business

    Setting up a payment integration partnership

    When a business wants to partner with another organization for online payment integration, they should prioritize seeking common core elements, just as they would with any partnership: Both companies should have similar philosophies of operation, stages of technology development and understanding of buyer demands.

    But another point to check is the contract length. Businesses should make sure that, for a long-term contract, there is a sliding scale — as the company processes more transactions, the costs should go down. If a sliding scale arrangement isn’t possible, companies should opt for a short-term contract so that as they evolve and their processing volume increases, they can pivot and move to another provider with more favorable terms if needed.

    The real winners are the customers

    Online payment integrations have the power to significantly boost a company’s earnings. However, the ultimate winners are the customers making purchases. With enhanced convenience, they can buy more of what they want or need without worrying about the form of payment or how the transaction process will work.

    The buyer expectation now includes the availability of online payment options, and your competitors likely offer those options already. To stay ahead in the market and meet customer demands, integrate a way for buyers to complete credit card transactions, be a part of the money-making service and continue improving the integration once it’s in place.

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    Fady

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  • 6 Things Landlords Should Know About Automated Rent Payments | Entrepreneur

    6 Things Landlords Should Know About Automated Rent Payments | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    As a first-time real estate investor or new property manager, you are responsible for choosing which rent collection method(s) you’ll offer your tenants. Automatic rent collection is increasingly popular among landlords and tenants alike, but it often comes with questions and concerns from both parties.

    If you’re thinking of offering automatic payments to your tenants, there are a few things you need to know first. In this article, we’ll review the benefits of autopay for rent collection as well as six key points to know before getting started.

    Related: How Successful Landlords Approach Rent Collection

    Benefits of automated rent collection

    Automated rent collection, often facilitated by a bank or property management software platform, is a method of rent collection that automatically transfers funds from your tenant’s account to yours each month.

    Autopay differs slightly from online bill pay, which you may also be familiar with. The key difference with online bill pay is that a tenant gives permission for their bank to make recurring payments from their account to the landlords’. Autopay, on the other hand, is when the tenant permits the landlord to debit their account each month.

    Autopay is an excellent way to manage regular payments in the same amount each month, like rent. Other benefits of automated rent collection include:

    • Guaranteed on-time payments

    • Fewer late fees for tenants

    • Peace of mind if there is no rent grace period

    • Less stress on the first of the month for both parties

    What landlords need to know about automatic rent payments

    Before you get started with autopay, however, there are a few important things to know. Keep each of the following six tips in mind before implementing your automatic rent collection system:

    1. You should include an autopay clause in your lease agreements

    It’s important that you establish all your rental policies and expectations in the lease or rental agreement, including payment options and requirements. In every lease, explain in detail the options tenants have for rent payment, including autopay. Be sure to also include a description of how autopay works through your property management software or other platforms, as tenants will likely have varying levels of literacy with technology.

    Related: 5 Property Management Tasks to Automate in 2023

    2. Don’t require tenants to use autopay (or electronic payments)

    This is one of the primary causes of legal issues regarding rent payments for landlords. In certain states (such as California), it’s illegal to require tenants to pay rent electronically. In these states, you’ll need to provide at least one offline method for rent payments, such as cash or check. The same applies to autopay — whether or not you can require tenants to set up autopay depends on which state your property is located in. It’s important to know which state and local laws apply so that you can provide tenants with multiple options to pay rent when necessary.

    3. Be aware of fair housing regulations

    Even in states that don’t specifically forbid it, requiring tenants to set up and use autopay could be interpreted as a violation of fair housing laws. In some states where tenants are protected against discrimination based on age, a policy requiring tenants to pay via automatic payments may be seen as discriminatory against older renters, who are less likely to be digitally literate.

    If you have older tenants, an online-only policy could induce unnecessary stress or even motivate them to find a new rental. Use caution when developing your rental payment policy, and be cognizant of how your leases uphold fair housing laws.

    4. Be sure you can reject automated payments

    No matter which method of rent collection you use, you must have a way to reject payments. This is important because in some states, accepting full or partial payments during the eviction process could delay the legal action and require you to file an entirely new complaint. For this reason, it’s critical that you are able to reject an automatic rent payment and stop autopay altogether when necessary, such as when the lease ends.

    5. Learn about NACHA rules and regulations

    The National Automated Clearinghouse Association (NACHA) is responsible for regulating the ACH network and ensuring its security. For example, NACHA requires merchants (like landlords) to have a written security policy explaining how tenant information is stored. These rules ensure the integrity and confidentiality of sensitive information and are critical whenever you’re dealing with tenant data. Be sure your payment processor is NACHA-compliant before implementing your autopay policy.

    Related: ACH Payments: What Are They and How Do They Work?

    6. Watch out for cases of non-sufficient funds

    Just because a tenant has enabled autopay, this does not mean their payments are 100% guaranteed. If a tenant does not have enough funds in their account to cover the debit, the payment will bounce and you won’t receive the rental amount on time. In many states, landlords can charge a service fee when this happens, but be sure you know how much you can legally charge based on your state.

    Automated rental payments are a benefit to both landlords and tenants but are typically accompanied by a learning curve. Be sure you’re aware of these six points to prepare for a smooth integration of this rent collection method.

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    Dave Spooner

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  • How Online Rent Collection Can Boost Transparency in Your Rental Business | Entrepreneur

    How Online Rent Collection Can Boost Transparency in Your Rental Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Landlords experience a variety of benefits when switching to online rent collection: automation, convenience, accurate bookkeeping and the ability to meet tenant needs in the marketplace.

    Transparency is an often overlooked benefit. As consumers, we want and appreciate transparency throughout the transaction process. We want to be able to track our packages, payments and orders and know that everything is proceeding as it should. The same is true for the rental marketplace. The more you can clue your tenant in on the rent collection process, the more they’ll appreciate it.

    Here’s how you can use online rent collection to enhance transparency in your own business:

    Related: Landlords, Don’t Believe These 5 Myths About Online Rent Collection

    Track IP addresses and login credentials

    One common concern that tenants have about online payments is that they aren’t secure. In reality, online payments are often more secure than traditional cash and check payments. This is because online payments track IP addresses (physical locations) and login credentials for every person who signs onto the rent payment portal.

    These details help distinguish a device from thousands of other devices online in the area, and incorrect details can indicate when there has been a problem. Combined with timestamps, IP addresses can be used to verify the validity of a transaction, especially if you or a tenant notice something amiss in your records. The addition of these data points is a clear strength of the online approach, and it helps facilitate communication about potential security breaches and other concerns between landlords and tenants.

    Record dates and timestamps

    As mentioned, dates and timestamps are another important data point that is beneficial to collect. Online platforms record these details automatically, and they can hold both you and the tenant accountable. For instance, a tenant may be able to claim that they dropped a check in the drop box at 11:00 p.m. on the day rent was due, but how would you know for sure whether it wasn’t really the next morning? There’s no way to confirm exactly when your tenant paid (or, in the case of cash, even how much their payment was).

    To solve this problem, online rent payments automatically record the exact time a payment was made, providing you with a benchmark you can use to apply late fees and hold tenants accountable. Plus, if a tenant doesn’t remember having made a payment at a certain time, you can investigate potentially fraudulent transactions much sooner.

    Auto-generate invoices and receipts

    Part of transparency is making sure all parties understand what is expected of them. That’s where invoices and receipts come into play. By providing your tenants with an automatically generated rent payment invoice each month, you can gently remind your tenants of the rent due date and encourage them to make more payments before late fees are applied. Additionally, if changes are made to the agreement or special circumstances of any kind, you can make these changes on the backend and still ensure your tenant receives the correct invoice at the correct time. And after each payment they make, your tenants will receive a receipt verifying the amount, date and time of the payment. There’s no better way to stay transparent with your rent collection process than to inform your tenants that their payments have been received on time, in the correct amount, right after they make them.

    Know exactly when your funds come in

    Online rent collection can also offer you transparency benefits. On some property management software platforms, for instance, you can use rent payment tracking to find out exactly when your funds are expected to hit your account. If tenants are not paying rent on time, you’ll know that as well, and you can still track the progress of the transaction until it’s finalized and the funds are deposited into your bank account.

    Related: How Successful Landlords Approach Rent Collection

    Keep a history of rental payments

    Lastly, online rent collection creates transparency for both you and your tenants by keeping an accurate history of rental payments. For each tenant, your rent payment platform keeps a rent payment ledger — or a history of all the transactions between you and that tenant. This increases transparency because your tenant doesn’t have to take your word for it about whether a certain fee was charged months ago or how many times they’ve had late payments. Instead, both you and the tenant can see the details of every transaction at any time.

    There are so many reasons to adopt online rent collection that we didn’t cover here. But as transparency is the foundation of good communication and lasting relationships, it’s no wonder that incorporating it into the rent collection process leads to better landlord-tenant relations and longer tenancies. By switching to online payments, you can serve everyone’s interests while looking after your business, too.

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    Dave Spooner

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  • 3 Secrets to Streamlining Your Accounts Payable Process | Entrepreneur

    3 Secrets to Streamlining Your Accounts Payable Process | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    It’s a common mistake made in adolescence: bleaching one’s hair to look unique. Those who achieve the envisioned look are few and far between, as the proper at-home technique evades most of us, leaving us to tell the tale of a period in life during which we sported preposterously orange hair.

    Thankfully life grants us wisdom (and a collection of funny stories) as we age. We learn that nailing a unique vision requires tremendous study, discipline and teamwork. It takes time to create something distinctive. And gaining wisdom doesn’t mean you have to lose your flair for the unique: it just means you’ve got a better eye for the solutions and processes that’ll get you to your goal.

    While hair couture is a fascinating topic — and apropos to leaving a distinctive mark on the world – today I’d like to take a look at one of the fundamental elements behind creating an exceptionally successful business: the Accounts Payable (AP) process. Leveraging the right AP solution that perfectly aligns with your business’s unique vision and resources will ensure your company grows without compromising its individuality.

    Related: How to Master Bookkeeping for Your Business Without an Accounting Degree

    Why choosing an AP solution that aligns with your vision is a must

    The urge to start or run a business stem from a creative place. Thankfully, the fundamental processes that run a business have come a long way, making it more possible than ever to make entrepreneurial visions a reality. The Accounts Payable process is one such fundamental element of a successful venture. Accounts Payable (AP) tracks and monitors the expenses owed by a company to its suppliers and vendors, which is crucial in managing the overall budget.

    Each business has unique needs — and the AP process should suit their individual situation. Top-rated automation solutions for AP allow organizations to do the tailoring they need. For example, multisite organizations — like in the construction business or the B2B service industry — would benefit from Cloud-based Accounts Payable automation, as this allows for the capturing, processing, approval, and payment of invoices from any approved device at any location, with multiple and complex validation rules and routes (if you’ve worked on a construction project before, you know there’s often a lot of movement amongst sites). Additionally, Cloud-based AP automation can track and reconcile orders, retention status, and lien waivers as they flow in from vendors, subcontractors and suppliers.

    Another example of industries that thrive with customizable AP software is the industries where maximizing customer-facing time is key for satisfaction and business growth. In a fast-moving restaurant, in a retail store, in a consulting business, there’s no time for manual mistakes. A fully-automated, no-touch AP process can significantly lessen the incidence of human error around the many business transactions flowing back and forth on a given day, streamlining and centralizing the purchase-to-pay (P2P) process and others pertaining to spending and suppliers. A customizable, seamless AP automation software can free these businesses up to focus on the distinctive elements that make their business special – like the food and customer experience for example.

    The majority of businesses, large and small, can benefit from implementing Accounts Payable automation and Purchase-to-Pay automation moving forward, suited to their budgetary goals and specific workflow configuration. The increased productivity, accelerated cycle and data accuracy heighten coordination and collaboration between departments, and easier compliance with regulations and standards granted by this intelligent software improves business operations. Beyond, it improves business leaders’ ability to predict cash flow and make better decisions as data automatically flow in real-time to their data analytics and data visualization tools.

    What to look for in Accounts Payable software

    Not all AP automation software is created equal. After determining your business needs and requirements around invoice processing, there are a few things to pay attention to when searching for the best Accounts Payable automation software for your business.

    • Seamless real-time automation: Ensure the Accounts Payable automation software syncs with your existing financial solutions and ERP system. You want your AP automation to act as a one-stop shop for invoicing and payment solutions. Some unique solutions leverage AI and machine and deep learning technologies to deliver an outstanding level of automation with extreme simplicity and traceability.
    • Simplicity: AP automation software should display user-friendliness, plug-and-play integration with existing IT systems, and unlimited flexibility in meeting evolving business operations needs. It should work for your business and not require a total restructuring of the systems you already have in place.
    • Scalability: A great AP automation software should be based on a pay-per-use model, and it should offer an all-in-one set of solutions, starting from invoice automation, then moving to automated invoice payment, then extending purchase automation. Rather than relying on a user-toll model, AP automation software should afford teams the flexibility and elegance of using only what they need to, when they need to. Elements such as customizable workflows, the ability to create codes to suit specific transaction needs, and Cloud-based integrations provide the end-to-end, structured dynamism necessary to meet the needs of your business as it evolves.

    Related: 5 Cash Management Tactics Small Businesses Use to Become Bigger Businesses

    Choose an AP automation solution that’s as unique as you are

    Running a business is labor-intensive. When it’s work you deeply care about, it’s a labor of love – and that means you’ll go above and beyond to find the processes and tools that bring your vision to life. Only a happy few automation software solutions will allow your team’s creative and innovative power to shine while preventing errors along the way. Market offering is wide, so it is crucial to make the right choice. Finding the right balance between automation, simplicity and functional scope is the only way to make your automated AP process suited to support the unique vision of your business. Just like finding the right hairstyle to suit your individuality, the right AP automation strategies will set the groundwork so your company can grow confidently without sacrificing what makes it unforgettable.

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    Francois Lacas

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