Can Business Owners Minimize Payment Risk?
1 May 2018
The private sector drives the U.S. economy, and the number of businesses not owned or operated by the government increases every year. There are roughly 750,000 corporations and 30 million small businesses providing nearly 50 percent of the nation’s jobs. With more than 2 million jobs added to the economy during 2017, it’s absolutely critical that business owners receive payment for the products and services they provide.
Common Payment Issues
Fraudulent consumer activity seems to get much less attention than fraudulent business practices. But business owners often struggle with payment problems and are victims of consumer dishonesty.
Past-Due Invoices. Without consumer integrity, the invoicing process falls apart. A consumer who doesn’t have the ability or intention of paying a past-due bill can easily stop responding to invoices, leaving the merchant to face the prospect of a financial loss.
Hiring Collectors. Collection agents can help deal with debtors, but their engagement with the consumer is sometimes flawed and therefore a source of reputational damage for the business. In addition, collection agents typically only return 10-15 cents for every dollar of debt they’re asked to pursue.
Suing for Pay. A business owner can also pursue legal action against a debtor, which can be costly, time consuming and not always successful, especially when the debtor isn’t a U.S. citizen. Moreover, suing runs the risk of negative publicity and counter lawsuits for the business.
ChargaCard Installment Plans
Instead of suing, hiring a collection agent or continuing to pursue full payment, a business owner can alternatively offer a ChargaCard installment plan, giving the indebted consumer a chance to pay his or her bill over time in affordable monthly installments. The ChargaCard platform directly connects businesses with consumer bank accounts, providing automated execution of the monthly payments. ChargaCard offers a convenient, “set it and forget it” solution with no monthly or merchant fees, no interest charges, and just a one percent transaction fee.