Getting Paid and cash flow is important for any business. For a start-up repair business, you need money in your account as quickly as possible. Here are some payment methods starting from the slowest to the fastest.
30 Days – Payment By Bank Transfer – Some customers (mainly other businesses) will insist on opening an account with you. Whether you choose to accept payment on account by BACS or not is up to you, sometimes best to wait for a few years until you are established with good cash flow before offering credit. Typically, you would expect payment 30 days after invoicing your customer making this the slowest payment method.
Pros: No fees (bank may charge a fee and varies).
Debit/Credit Card – Should be one of the cheapest payment methods you accept (after Bacs!). I recommend going through a broker who will get you the best deal with a minimum contract, usually 3 years. Rates should be 1-2% max.
Pros: One of the cheapest payment methods, Fast to get payment into your bank account, typically 3 working days. You may get an online terminal, great for taking payment away from the shop.
Cons: Credit checks may fail if you are a new business.
Paypal – Paypal is one of the most popular payment providers recognised and used by millions of people / ebay and paypal is accepted on many big name websites. Payments are typically received instantly (buy may take some time to transfer to your bank!).
Pros: Highly regarded and trusted worldwide. Easy to integrate into your website. Cheap Card Machine, means you can take actual card payments in your shop.
Cons: One of the most expensive payment methods, typically charges fees 2.4% on each transaction.