In the age of instant electronic payments, businesses are still cutting a lot of checks. Yet many businesses have never considered accepting business checks as a way to grow their business. By accepting paper checks from new customers who do not use electronic payments, you could be busy business check cashing while growing your revenues. By not accepting paper checks, you could be slashing your market opportunity in half. Fifty percent of businesses use paper checks as their main way of making payments.
Many businesses, especially small businesses, have chosen not to join the paperless society. The main reasons are cost, convenience, and security. These companies do not offer paperless invoicing and pay their own bills by check. They may be happily married to their old account systems and slow to change. Or they may have no plans to put their business data online because of cybersecurity risks. Other small businesses snub electronic payment methods owing to high processing fees. The fees for business check cashing, in contrast, are low or no fee.
Reducie Cybercrime Risks
Cybercriminals consider small businesses to be homes with their doors left open. Small companies, those most likely to use paper checks, are hit the hardest. Small businesses are often the target of online cybercrimes. Put another way, half of all small businesses have been victims of cybercrime. These small businesses say they do not have cyber defenses to protect themselves. Alarmingly, too many businesses close up shop after a cyber attack.
High Electronic Processing Fees
Many businesses choose not to adopt digital payments due to high fees. In fact, 55 percent of small businesses do not accept credit cards. A plumbing or electrician business, for example, cannot rationalize accepting cyber risks over commercial check cashing. These businesses trust their customers in the community, many of whom bank at the same bank branch.
Paper checks allow businesses to more precisely control their cashflow. The electronic banker using automatic bill paying must pay bills on the same day each month. If business revenues are down, the bill payments are processed, whether or not the funds are available. Insufficient funds result in high overdraft fees and negative credit events for small businesses. Paying bills by paper check provides a business with more flexibility to control its budget.
By accepting paper checks, you can expand your business to the majority of businesses that prefer the flexibility and security of business check cashing. Contact services like Check Pros Financial Services to learn more.