Cash Flow And Why Merchants Should Give Importance To It

Cash Flow

Cash flow is one of the important aspects of every business and if you are running out of cash flow, you will definitely fail in your business. Therefore, maintaining cash flow in business is very important. Well, the number of sales and cash flow in business are somehow inextricably related to each other. But, it does not mean that making too many sales will increase the cash flow. The money flow refers to the amount of money you have received and on the other side, if you are making sales, you will have invoices. But, you might not be paid instantly for all those invoices.

Well, this is why it is very important to understand the difference between cash flow forecasting and cash flow in order to take your business to the next level. People in the 21st century do not follow the traditional payment methods and as a merchant, you have to understand this. You must upgrade your payment equipment in order to accept credit card payments online. People are nowadays preferring online transactions and so, if you want to increase the overall cash flow, you must start accepting card payments.

However, starting an online business platform is not as easy as it looks. You need to become a merchant of an efficient payment processor. The payment processor will provide an online payment gateway through which you will be able to accept credit card payment. Moreover, you must have advanced payment terminals that can accept all forms of payments. We at International Payment Solutions offer various payment equipment. We have also covered these things and you can go through them to get a proper idea. But, before getting into them, you must understand each and every aspect related to cash flow. So, don’t miss to go through the following points:

Cash Flow

Well, it is quite evident that business brings money through sales, investments and loans. Money flowing indicates the amount of money you are getting from your business. On the other side, you have to spend money on purchasing supplies, upgrading payment equipment, paying loan payments and tax. This is called cash flowing out. Now, if you want to measure the cash flow, you have to compare the cash flowing in with the cash flowing out. The entire comparison must be done for a specific period of time. Merchants generally do it at the end of the month to understand the monthly money flow in their business.

How Merchants Can Calculate The Cash Flow

If you are into an online business, you must know how to calculate the cash flow. There is a simple formula behind it:

Cash Received In Business – Cash Spent = The Net Cash Flow

If the net cash flow remains positive, your business is flourishing. But, if the number of cash spent becomes bigger than the cash received in business, you are actually losing. In such a situation, you have to increase the number of sales or you need to mitigate the cash spent amount.

Difference Between Cash And Profit

There is a difference between the cash and the profit. If you are making too many sales, you are actually making a profit. But, profit only indicates the number of sales you have made. On the other side, cash refers to the amount of money that you have in your bank account. Selling a product does not mean that you will be paid instantly. You might have made lots of profit on paper but, there will not be a lot of cash in the bank account. These sales will only reflect your income statement.

If the customers have not yet paid the money, it will not be appeared in the cash flow statement. The money is not available to you as it is still in the hands of the customers. But, you have to pay your rent, meet payroll and fulfill orders. Therefore, in such a situation, you have to keep an eye on your daily money statement.

Role Of Payment Terminals In Cash Flow

Well, if you pair your business with advanced payment terminals, it will be easier for you to track the profit of your business. We at International Payment Solutions offer technologically advanced payment equipment such as credit and debit card machine, virtual terminal, online payment processing and many more. You don’t need to hire too many staff to manage your business. With these terminals, you can track your daily sales and you will also have real-time reporting. Moreover, these terminals accept all forms of payment and so customers will be able to make instant payments. You can also send an email invoice to your customers.

Not An IPS Merchant?

So, you have understood why maintaining cash flow is important. Now, if you want to accept online payment, you need to pair your business with a merchant processor solution. International Payment Solutions is a renowned name in this online payment industry. This platform offers efficient payment terminals and so, if you want to elevate your business to the next level, you must get in touch with IPS.

Start accepting credit card online or in your store today! , Fill out the below form for a free consultation, we will get back to you shortly:



    Customer Loyalty Program- The Best way To Promote Your Business

    Customer Loyalty Program

    Customer loyalty program is one of the best ways to promote your online business. Yes, we are living in the 21st century where the retail market has become highly competitive. Therefore, small merchants are coming up with new as well as innovative ideas to survive in this industry. Well, the customer loyalty program is one of them and the outcomes are very positive. If you are someone who is following the primitive business strategies, you are actually making a big mistake. The time has come when you have to think beyond your comfort zone. With the advancement of technology, small merchants are making an online shift so that they can accept credit card payments online.

    Yes, standing in the 21st century, we cannot ignore the credit and debit card transactions and this is why businessmen have to upgrade their payment terminals. But, starting an online business, accepting credit card payments online will not be enough to elevate your business to the next level. You have to start your own customer loyalty program.

    Customer Loyalty Program

    A customer loyalty program is a kind of promotional strategy. If you are new to online business, implementing a customer loyalty program will be very helpful for you. Most businessmen do not think about it in the beginning. But, you can keep yourself ahead of your competitors by starting a customer loyalty program.

    With the help of a customer loyalty program, you can give your customers a rich user experience. Along with it, you can increase the number of regular customers. If you can provide an attractive offer in your customer loyalty programs, the new customers will become your regular customer. Ultimately, the overall cash flow will be enhanced.

    But, running a successful customer loyalty program is not as easy as it sounds. You need to work on three aspects inextricably associated with customer loyalty programs. Yes, these aspects are- providing smooth sign-up experience to the customers, giving proper training to the business staff so that they communicate with customers properly and delivering enchanting offers to the customers for joining the loyalty program. We have highlighted these points here to give you a concrete idea about it:

    Provide Smooth Sign-Up Experience

    Well, if you want to start your own customer loyalty program, you must have an online marketplace where customers can enroll themselves for the program. Now, when it comes to enrolling, you have to make the user interface very smooth as well as simple. Otherwise, customers will have a problem to register. Moreover, customers do not have much time and so, you have to make the process very quick. You have to make sure that customers can complete the registration in just two to three clicks.

    Train Your Business Employees

    Well, you have to train your business employees very well so that they can communicate with the customers very well. They must have all the answers to customer’s queries. It will create a solid impression upon them. Moreover, they must have good presentation skills so that they can elaborate the customer loyalty program to the customers. It will increase the chance of gaining more loyal customers.

    Provide Attractive Offer To Your Loyal Customers

    Well, this is the most important step. There are many businesses offering attractive cashback and other offers to their loyal customers. Now, if you want to keep yourself ahead of them, you must study your competitors. You have to find out the loopholes in their business and depending upon these, you have to design the offers for your loyal customers. Some offers might be the same but, there must be uniqueness in your customer loyalty program. It will make a difference. Moreover, if you have the capability to satisfy your loyal customers, they will promote your program in their networks. It is called word-of-mouth marketing.

    Well, along with these, there are some other things that you must keep in mind. These are having advanced payment terminals, secured credit card payment service and many more. Customers do not like to carry cash with them nowadays and therefore, your business must have credit and debit machines. Along with these, you can have a virtual terminal that will allow you to accept credit cards from anywhere and anytime. If you want to get access to advanced payment terminals, you must become a merchant of a payment processor. Here, we are going to suggest you the best one.

    Not An IPS Merchant?

    If you want to accept online payment, you must have an online payment gateway. You can get this from a merchant processor solution. There are many credit card processors offering such services but among them, International Payment Solutions is the best option. The company has years of experience in this sector and it offers advanced payment terminals that will really help you to take the customer loyalty program to the next level. So, if you are new to this, you should not wait further. Get in touch with IPS today and start your customer loyalty program efficiently.

    Start accepting credit card online or in your store today! , Fill out the below form for a free consultation, we will get back to you shortly: