Five reasons why businesses need to adopt efficient payment systems to survive

In today’s rapidly evolving and fast-paced world, only businesses that adapt and innovate survive. The prospect of economic uncertainty can prompt businesses to adopt sweeping cost-cutting measures as a way of surviving, but this often creates more problems and does not address inefficiencies at their cause. Investing in technology that improves processes, reduces administration pain points, and boosts cash flow is a stronger long-term move for business survival and growth.

Digital transformation is a trending topic globally and Australian businesses must actively keep pace with this transformative wave to remain competitive and thrive in the digital era. As a result, the Australian Government is investing $116 million over the next five years to drive economic growth, boost technology industries and create new jobs. This support aims to enable organisations to develop critical technologies and fully embrace digital transformation.

One crucial aspect of any digital transformation strategy is the effective management of payment systems and cash flow. For those businesses smart enough to automate their payment processes, it means cutting up to 20 hours a week of invoicing and payments administration and reducing invoice processing time by 74 per cent.

This article explores the key benefits for businesses to leverage efficient payment systems and cash flow solutions.

Improve cash flow management

Efficient payment systems and cash flow solutions empower businesses to gain better control and visibility over their financial resources. By investing in smart systems and adopting automated invoicing, electronic payment methods, and streamlined reconciliation processes, businesses can accelerate cash flow and better manage working capital. These solutions provide real-time insights into cash positions, enabling proactive decision-making.

• Easily see all outstanding debt
• Enter into payment arrangements with customers
• Send reminders for customers to pay overdue invoices

Enhance the customer experience

Modern payment systems offer a range of convenient options for customers. By embracing these solutions, businesses can offer a seamless and user-friendly payment experience, improving customer satisfaction and loyalty. Efficient payment systems also enable faster and more secure transaction processing, reducing waiting times and enhancing overall transaction efficiency.

• Send your customers easy to use payment links
• Accept multiple payment options, including bank account transfers and via credit card
• Offer financing solutions at the point of sale

Reduce costs

Outdated payment systems often involve manual processes, paperwork, and administrative overheads, which can be costly and time-consuming. By leveraging efficient payment systems, businesses can automate tasks like invoicing, payment processing, and reconciliation – significantly reducing operational costs. Additionally, by accessing flexible cash flow solutions, businesses can better optimise working capital and negotiate better terms with suppliers, leading to substantial cost savings in the long-term.

• Direct ledger-to-ledger integration means both you and your customer benefit from simple reconciliation
• Save a minimum of the equivalent of one full time accounts receivables clerk
• Use on-demand finance to pay your suppliers early and get access to early settlement discounts

Improve payment security and reduce fraud

Efficient payment systems incorporate advanced security features and encryption protocols to safeguard sensitive financial data. This means businesses can minimise the risk of fraud and better safeguard customer data and transaction information, which helps to maintain trust and credibility.

• Protect your business data
• Protect your customers’ data

Make better strategic decisions

Effective cash flow management enables businesses to make data-driven decisions and better plan for the future. With accurate cash flow forecasts, businesses can identify potential funding gaps, allocate resources efficiently, and make informed strategic decisions. This strengthens a company’s overall resilience and long-term survival.

• Make more informed investment decisions
• Optimise financial performance

Get a tech-driven edge with Spenda

Whether you’re looking to get paid faster, improve customer retention, or understand what to focus on to weather economic uncertainty, Spenda’s solutions can help. Our Business Survival Guide: How to manage cash flow in uncertain times, outlines what you can do to optimise business cash flow and grow faster.