Cashflow is the net amount of money moving in and out of your business in terms of income and expenditure. In an ideal world, your cashflow would be positive at all times – in other words, you’d have more money coming in than going out.
However, the world can be far from ideal, so there may be times when cashflow is negative. Sales can be affected by the weather, or a customer may be late settling an invoice, but you still have wages and bills to pay.
Strong positive cashflow keeps a business alive and helps you fuel growth. Poor cashflow can ultimately see a business fail. If you’re experiencing cashflow issues, you need to get to the root of the problem as quickly as possible.
When your business is busy and generating cash, the slower months can seem far away, but it’s essential to plan ahead. By analysing your historical cashflow, you can identify fluctuations in demand and plan for periods when demand is low. This exercise can also reveal when your business might come under pressure and how much money it will need until the next peak season. Putting money aside when times are good will also help to give you a boost when demand picks up again.
Ebb and flow
Success should be measured by how your business performs not only during peak seasons, but in slow times too. Managing your outgoings and reducing unnecessary costs is key when things are quiet, so scrutinise every purchase and payment to see where you can make savings. The slower months also offer you more time to reflect on your goals, engage with your customers and chase any late payments.
You’ve worked hard to build your business, so don’t let your efforts fall victim to cashflow woes. No matter how well you budget for the lean times, there may be occasions when your business needs additional funds.
A business loan could provide your business with not only a cash cushion for the slower months, but also the funds you need for growth when demand picks up again.
Overall, loans can be a helpful tool for improving cashflow and growing your business. However, it’s important to make sure this is the right decision for you. If you ever find that you are in financial difficulty, you should let your lender know as soon as possible so they can work with you to find the best solution.
Advice to clients in the current climate remains the same as when interest rates first spiked in 2022, according to Rebecca Richardson (pictured top), a Charlotte-based broker licensed in over 10 states. “Buying a home is always still a personal decision,” she told Mortgage Professional America. “Of course, we’d always like to pay less for things but if the timing is right, if [the buyer] can afford the payment, it’s about the hard math of buying a house.”
Nor have the questions borrowers should be asking themselves changed significantly, Richardson said: namely, whether the purchase makes sense and fits their budget, and whether it would meet the purpose of their buying a home.
Plenty of would-be buyers decided to hold back on their purchasing plans as rates shot upwards after 2021 – but while some held out hopes that borrowing costs would plunge again, Richardson said a growing acceptance is emerging that rates won’t hit the rock-bottom lows again of the COVID-19 pandemic.
“I think reality has set in,” she said, “because you can get the house, you can lock in the price of the home and the rate can be fixed later at some point with a refi.”
— Mortgage Professional America Magazine (@MPAMagazineUS) November 20, 2024
Buyers increasingly unmoved by news of rising rates
The recent jump in rates may have dissuaded some potential buyers about pushing ahead with a move, but others are approaching the market with a bullish attitude and the realization that there’s never a perfect time to make a purchase, according to Richardson.
Here’s a fresh take on the VIAINVEST performance report for September and October 2024
In September 2024, VIAINVEST published €11,928,910 in loans, with €11,736,351 successfully funded. Investors received €400,994 in interest, with rates reaching up to 13%. The platform’s client base also grew, totaling 41,427 registrations.
October 2024 saw similar activity, with €11,810,797 in loans published and €11,884,439 funded. Interest payouts to investors climbed slightly to €408,985, with the maximum interest rate remaining at 13%. By the end of October, VIAINVEST’s client registrations had reached 41,745.
September 2024
Loans published – 11 928 910 EUR Loans funded – 11 736 351 EUR Interest paid to investors – 400 994 EUR Interest rate up to – 13 % Total client registrations – 41427
October 2024
Loans published – 11 810 797 EUR Loans funded – 11 884 439 EUR Interest paid to investors – 408 985 EUR Interest rate up to – 13 % Total client registrations – 41745
These results reflect VIAINVEST’s continued growth and commitment to delivering strong returns for its investors.
Disclaimer
1)This is marketing communication, not investment advice or investment research. Investments involve certain risks and costs. Legal information about SIA “Viainvest” and its services is available here: https://viainvest.com/en/company/legal/. 2) This is a periodic fact sheet provided for informational purposes. Data sourced from our own internal records. Past performance is not a reliable indicator of future results.
Frank N. Darras authored an article titled “Feel the Love” for the Daily Journal which analyzes the specific type of disability insurance collegiate athletes can use to protect themselves. This insurance called Loss Of Value or “LOV” for short can be an athlete’s best friend if he or she is injured.
Personal loans are sums of money borrowed from lenders, repaid with interest over an agreed period. They can be used for various purposes, including debt consolidation, home renovations, and major life events.
Types of Personal Loans
1. Unsecured Personal Loans: These do not require collateral and are based on your creditworthiness.
2. Secured Personal Loans: These require collateral, such as a car or home.
Benefits of Personal Loans
1. Debt Consolidation: Combine multiple debts into one manageable loan.
2. Home Improvements: Fund home renovations or repairs.
3. Major Purchases: Finance big-ticket items like vehicles or appliances.
4. Emergency Expenses: Cover unexpected costs like medical bills or urgent repairs.
Factors to Consider Before Applying
1. Credit Score: Higher scores improve your chances of approval and better interest rates.
– Loan Term: The duration you have to repay the loan.
– Repayment Structure: Monthly payments consisting of principal and interest.
Tips for Improving Approval Chances
1. Boost Your Credit Score: Pay off existing debts and ensure timely bill payments.
2. Reduce Debt-to-Income Ratio: Increase your income or reduce existing debts.
3. Provide Accurate Information: Ensure all information on your application is accurate and complete.
Getting a Personal Loan with Bad Credit
Even with a poor credit score, you can find lenders specialising in bad credit loans. Using a broker like Badger Loans can help you connect with these lenders and find suitable options.
Using Badger Loans
Badger Loans acts as a fee-free broker to match you with appropriate lenders. They do not run a credit check themselves but facilitate the process to help you find the best loan for your needs.
Conclusion
Personal loans can be a valuable financial tool when used responsibly. Always ensure you understand the terms and conditions before committing and choose a loan that aligns with your financial situation.
For more detailed information, you can refer to the individual blog posts:
Mortgage Strategy’s Top 10 Stories of the Week
This week’s noteworthy developments include Vida Homeloans securing a banking license and undergoing a name change, alongside Knight Frank’s projection of a £140.3 million stamp duty shortfall for the UK. Explore these and other key industry updates in our comprehensive top 10 roundup below:
Vida Homeloans receives banking licence and changes name
Vida Homeloans received PRA and FCA authorisation to become a fully licensed bank and announced it would operate under the new name, Vida Bank. The banking licence enables Vida to offer retail deposits, strengthening its funding base and expanding customer offerings. This move is set to enhance its competitiveness in the specialist mortgage market. CEO Anth Mooney highlighted the significance of the licence, which opens new growth opportunities and will support the launch of Vida’s first savings products.
UK set for £140.3m stamp duty shortfall: Knight Frank
Knight Frank reported an estimated £140.3m stamp duty shortfall due to a decrease in property transactions above £5m. The shortfall was attributed to 107 fewer sales between £5m and £10m, and 35 fewer sales above £10m. The loss follows uncertainty surrounding wealth and property taxation, particularly after the government’s proposed changes to the non-dom regime. The shortfall was measured by comparing forecasted and actual offers between March and October 2024. In the 2023/24 financial year, £11.6bn was collected in stamp duty.
Budget 2024: Right to Buy discounts to fall and social rents to rise
In the Autumn Budget 2024, Chancellor Rachel Reeves announced cuts to Right to Buy discounts, reducing the amount council tenants could save on home purchases. Local authorities will retain proceeds from these sales to reinvest in social housing. The government also plans to consult on higher rents for social tenants to ensure long-term financial stability for providers. The budget included a £500m investment to build 5,000 new social homes. The changes aim to increase affordable housing supply despite concerns over fairness.
Santander lowers BTL affordability rates
On 20 November 2024, Santander lowered its buy-to-let (BTL) affordability rates. The lender reduced its standard affordability rate from 7.31% to 7.15%, while the five-year fixed and pound-for-pound remortgage affordability rates were cut from 5.31% to 5.15%. This followed recent announcements of rate increases, including up to 0.29% on selected standard residential fixed rates for purchase, remortgage, and green products, as well as increases on large loan and new build fixed rates.
Starmer shrugs off blame for rising mortgage rates
Keir Starmer dismissed claims that the Autumn Budget caused rising mortgage rates, assuring borrowers that interest rates would eventually fall. Speaking during a flight to the G20 summit, he acknowledged the growth figures were unsatisfactory but argued the Budget laid the foundation for economic stability. He stated that this would lead to lower inflation and interest rates. Despite a Bank of England base rate cut, average fixed rates continued to rise, with major lenders withdrawing sub-4% deals.
Budget 2024: OBR lifts forecast for mortgage rates and house prices
The Office for Budget Responsibility (OBR) raised its forecasts for mortgage rates and house prices in its latest Economic and Fiscal Outlook. It now expects average mortgage rates to peak at 4.5% by 2027, driven by higher Bank Rate predictions. House price growth is expected to slow slightly to 1.1% in 2025, then rise to an average of 2.5% from 2026-2030. The OBR also predicted an increase in property transactions and housing starts, depending on upcoming planning reforms.
October inflation rises sharper than expected to 2.3%: ONS
UK inflation rose more sharply than expected in October, reaching 2.3%, driven primarily by higher household energy bills. This marked an increase from September’s 1.7%. While a rise was anticipated, the 2.3% figure exceeded market predictions. The Bank of England’s recent base rate cut to 4.75% seemed less likely to be followed by further reductions due to inflation’s uptick. Experts warned this would likely delay rate cuts and keep mortgage rates high, impacting borrowers in the coming months.
Industry reacts to October inflation figures
October’s inflation increase to 2.3% from 1.7% in September has dampened hopes for further Bank of England rate cuts this year. Driven by higher household energy bills, the rise exceeded expectations. Experts now predict no further cuts in 2024, with financial markets assigning a low chance of a December reduction. Analysts warn that inflation and the government’s budgetary measures could keep mortgage rates higher for longer, although some remain optimistic that the property market will perform well over the next few months.
eKeeper launches as finova Broker
finova Broker, previously eKeeper Group, launched under the finova brand to support the intermediary sector. The platform offers a CRM system with features like digital conveyancing, credit checks, and customisable workflows to streamline operations and boost brokers’ profitability. Enhancements include lead verification, an improved customer journey, and automated communications. Additionally, it integrates finova Payment Mortgage Services (fPMS) for faster payment processing and tailored tech solutions. Commercial director Matt Harrison emphasised the launch’s focus on empowering brokers and improving efficiency.
Cash buyers securing discounts of up to £86,000
Cash buyers were securing discounts of up to £86,000 on properties, with sellers offering lower prices to avoid mortgage complexities. Research by Lomond estate agency showed that properties listed as “cash buyers only” had an average asking price of £257,513, 17% or £52,059 below the regional sold price. Cash buyers in some regions, like Yorkshire and the South East, received larger discounts. Lomond’s CEO Ed Phillips noted that cash buyer status continues to hold significant value in the market.
You might consider an SBA microloan if you’re trying to start or expand a small business.
But how exactly does getting a microloan through the SBA work? What do you need to meet the requirements? What do terms look like? How do you get started with an application?
We’ll answer all these questions in more in our guide to SBA microloans. We’ll explain how it all works, highlighting requirements, current interest rates, microloan lenders, alternatives, and how you can apply today.
What is an SBA microloan?
The SBA microloan program consists of small loans funded by the Small Business Administration. However, these loans don’t come directly from the SBA to the borrower. Instead, the SBA provides the funds to a network of intermediary lenders, such as community based nonprofit lenders.
This network then provides microloans to eligible small businesses and certain childcare centers. Participants in the nonprofit lender network are selected not only for their experience in lending, but in management and technical assistance as well, so that these intermediaries can administer the microloan program effectively.
Microloans can be used for many purposes, affording small businesses flexibility when needing to rebuild, re-open, repair, or improve their business.
Seeking an SBA microloan might be a solution if you are looking to:
Access working capital
Purchase or replenish inventory or supplies
Replace or purchase furniture or fixtures in your business
Purchase new machinery, or secure equipment upgrades
However, you can not use an SBA microloan to pay existing debts, settlements of lawsuits, trade disputes, fines or penalties, or purchase real estate. You also can’t use the SBA microloan for personal, non-business use.
SBA microloan requirements
The SBA microloan loan program is geared for early-stage businesses and startups, but all for-profit small businesses and certain nonprofit childcare centers are eligible.
Because SBA microloans target early-stage businesses and underserved business segments, the requirements for qualification are less stringent than other types of traditional loans. Even if you have limited credit history or lower income, you may qualify.
Of course, each intermediary lender will have its own eligibility requirements, but most will ask for some or all of the following:
Collateral and/or a personal guarantee from the business owner
Minimum credit score – 620 or higher is good to have, but intermediary lenders may accept lower scores
Owner’s Personal finance history
Business finance history, with current cash flow or cash flow projections
A certain location within the lenders geographic service area
A minimum amount of time in business
SBA microloan rates, fees and repayment terms.
Although the SBA places certain restrictions on intermediary lenders, such as not exceeding $50,000 in loan amounts, interest rates and fees are up to your specific lender.
The interest rates will vary depending on your lender, but they typically range between 8% and 13%. And repayments terms are available for up to seven years.
SBA microloans also cannot be made as a line of credit – the microloan is structured as a term loan.
SBA microloan stats
Loan Type
Term Loan
Term Length
Up to 7 years
Loan Amount
Up to $50,000
Interest Rates
8-13%
Packaging Fees
Up to 3% of loan amount, plus closing costs determined by lender
Pros and cons of SBA microloans
Pros
Easier to qualify for: If you’re a startup or don’t have much business history, it can be hard to qualify for a business loan. Microloans, on the other hand, come with less stringent requirements, having been built to provide financing to businesses that traditionally struggle to find funding.
Faster funding: If you apply for a traditional SBA loan, the application and funding process can take months to complete. In comparison, you could receive funding through your microloan in just 30 days.
Low interest rates: Like all SBA loans, microloans come with low interest rates. The rates will vary depending on your lender, but the average rate is between 8% and 13%.
Flexible loan terms: SBA microloans come with repayment terms of up to 7 years, so your monthly payments are more affordable.
Cons
Small loan amounts: If you need to borrow more than $50,000, the microloan program might not be the best option for you.
Spending restrictions: SBA microloans do come with certain spending restrictions. For instance, you can’t use the funds to pay down existing debt or purchase real estate.
Lenders may charge fees: The SBA caps its fees, but individual lenders can charge their own fees. For instance, you may have to pay an application fee, loan processing fee, or closing costs.
Availability is limited: Since SBA microloans are offered by nonprofit intermediary lenders, these loans can be harder to find. These lenders don’t have the resources and staff that larger lenders have, so these loans might not be available in your area.
Finding SBA Microloan Lenders
The SBA has hundreds of lending partners located across the country, and provides a comprehensive list of microloan lenders to help you find a match.
Most lenders will require you to either speak to a lending specialist over the phone or apply in person.
The lender you work with will inform you about any necessary paperwork and documentation to apply. In addition, some lenders may require that you complete a workshop or training program as part of the application process.
As part of your paperwork, you’ll need to provide a range of information, including:
Proof of identity
Description of collateral
Balance sheet data (income and expenses)
Personal and business tax records
Business details (industry, licensing, assets, leases, etc.)
Once you’ve submitted all the required paperwork, your application is complete, and your lender will review and process the loan.
Alternatives to SBA microloans
If you’re not sure if an SBA microloan is the right fit for your business, here are some alternatives to consider:
SBA 7(a) loans: SBA 7(a) loans are a good choice for businesses that need larger loan amounts. These loans are available for up to $5 million, but the qualification criteria are more strict.
Business credit cards: A business credit card can be used for any business purchase, and the application process is relatively easy. If you go this route, look for a card with an introductory 0% APR.
Invoice factoring: If you have a lot of cash tied up in your unpaid invoices, invoice financing allows you to leverage your outstanding invoices to get access to capital.
The bottom line
SBA microloans can help startups and small businesses access the capital they need. These loans are a good option for traditionally underserved borrowers, like women and minorities, or low-income community businesses. If you’re interested in exploring your loan options, you can use Lendio to quickly compare loan offers from multiple lenders.
Quickly compare loan offers from multiple lenders.
Applying is free and won’t impact your credit.
Information provided on this blog is for educational purposes only, and is not intended to be business, legal, tax, or accounting advice. The views and opinions expressed in this blog are those of the authors and do not necessarily reflect the official policy or position of Lendio. While Lendio strives to keep its content up-to-date, it is only accurate as of the date posted. Offers or trends may expire, or may no longer be relevant.
LendingCrowd announces that it ranked number 25 in the 2024 Deloitte UK Technology Fast 50, a ranking of the 50 fastest-growing technology companies in the UK. Rankings are based on percentage revenue growth over the last three years. LendingCrowd grew 1,253% during this period.
Stuart Lunn, founder and CEO of LendingCrowd, said: “As we mark ten years since the launch of LendingCrowd, being included in the Deloitte UK Technology Fast 50 reflects the efforts of the entire team and the ongoing investment we are making in our platform. Thank you to all those who have supported us over the past decade and we look forward to continuing to help British SMEs with their funding needs.”
“Being one of the fastest growing technology companies in the UK is an impressive accomplishment. We commend LendingCrowd for making the Deloitte UK Technology Fast 50 with a phenomenal 1,253% growth rate over three years,” said Garry Tetley, Deloitte’s technology partner for Scotland.
Kiren Asad, lead partner for the Deloitte UK Technology Fast 50 programme, said: “We continue to see the resilience of the UK’s technology sector, demonstrated clearly from the impressive growth amongst this year’s Fast 50 winners. Amidst challenging economic conditions, these businesses have navigated their way to growth through tenacity, talent, and innovation in what remains a competitive market. I would like to extend my congratulations to all of the winners.
“The 50 fastest growing UK technology companies, as ranked by Deloitte, generated £1.93bn in total annual revenues in the year 2023/24. The Deloitte UK Technology Fast 50 recorded an average three-year growth rate of 2,468%.”
About the Deloitte UK Technology Fast 50 The Deloitte UK Technology Fast 50 is one of the UK’s foremost technology award programmes. Now in its 27th year, it is a ranking of the country’s 50 fastest-growing technology companies, based on revenue growth over the last three years. The UK Fast 50 awards are all about growth driven by leading intellectual property and are a celebration of innovation and entrepreneurship. Previous winners have come from across the UK, are both large and small, and included some of the most dynamic players in all areas of technology, from IoT to BioTech, digital media technology to life sciences, FinTech to software and clean energy to telecommunications. For more information visit www.deloitte.co.uk/fast50
The full list of this year’s winners and winner breakdown by region and sector is available at www.deloitte.co.uk/fast50
About Deloitte In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.
Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK’s leading professional services firms.
The information contained in this press release is correct at the time of going to press.
About Citi Citi provides global banking solutions to companies that are looking to grow rapidly and expand internationally. With Citi’s global network, comprehensive solutions, and industry expertise, Citi helps these businesses succeed across a wide variety of industries and at most stages of their growth.
About Oracle NetSuite Oracle NetSuite’s cloud business software suite is the top choice of technology companies who understand that the key to unlocking and managing growth is a back office system that can address today’s challenges while providing the critical foundation for future expansion.
Today over 36,000 companies trust NetSuite to run their mission critical business processes from accounting, procurement and HR through to marketing and sales. NetSuite’s track record as the business system of choice for high-growth tech companies is unmatched. NetSuite isn’t just for start-ups, companies of all sizes benefit from its comprehensive, global financial and accounting core that makes international expansion straightforward; improved visibility across the business; and increased efficiency from eliminating manual processes and disparate systems.
About Tipalti Tipalti is a global finance automation company helping finance teams drive business growth by automating and streamlining accounts payable, mass payments, procurement and employee expenses in one connected suite.
Tipalti takes the complexity, cost and risk out of time-consuming financial workflows, making it easy for finance teams to collaborate with employees and suppliers. Tipalti partners with blue-chip banks and financial institutions such as Citi, Wells Fargo, J.P. Morgan and Visa, enabling global companies to efficiently and securely pay millions of suppliers across 196 countries, 6 payment methods and 120 currencies. Over 4,000 growth-minded companies globally use Tipalti’s suite of solutions to reduce their manual finance workload by 80% and accelerate close by 25%, all while strengthening financial and spend controls.
If your long-term disability claim is governed by the Employee Retirement Income Security Act (ERISA), you are required to pursue an administrative appeal before you can file a lawsuit against the disability insurance carrier and the long-term disability plan. After your appeal rights have been exhausted, the next step would be to file a lawsuit in federal district court against the insurance company and the long-term disability plan. The law that developed since the enactment of ERISA in 1974 established that a denial of benefits challenged under ERISA’S civil enforcement provision must be reviewed under a de novo standard unless the benefit plan expressly gives the plan administrator or fiduciary discretionary authority to determine eligibility for benefits or to construe the plan’s terms. If the plan documents expressly give the plan administrator or fiduciary discretionary authority, the court is required to review your claim using a deferential standard of review.
If you have long-term disability coverage that was obtained through a group plan at work, and depending on which jurisdiction you reside, chances are that the policy grants discretionary authority to the insurance company. This simply means that a federal court reviewing the decision must give deference to the insurance company’s decision applying what is called an “arbitrary and capricious” standard of review. However, many states (i.e., California, Connecticut, Hawaii, Idaho, Illinois, Indiana, Kentucky, Maine, Maryland, New Jersey, New York, South Dakota, and Texas) have outlawed discretionary authority clauses found in group long-term disability plans.
Under the abuse-of-discretion standard, is it more difficult for a claimant to prevail in court? If the claim is subject to a de novo review, “The court simply proceeds to evaluate whether the plan administrator correctly or incorrectly denied benefits.” (Abatie v. Alta Health & Life Ins. Co. (9th Cir. 2006) 458 F.3d 955, 983.). California enacted Insurance Code §10110.6 effective January 1, 2012, which outlawed discretionary clauses in life, health, and disability plans.
Even if a group disability plan has an effective date before January 1, 2012, the policy insuring the plan will become subject to Insurance Code §10110.6 after renewal on the policy’s annual anniversary date after January 1, 2012.
When the Court utilizes a de novo standard of review, the Court evaluates whether the Plaintiff is disabled within the terms of the plan, and after evaluating the persuasiveness of conflicting evidence, decides which is more likely to be true. Kearney v. Standard Ins. Co., 175 F.3d 1084, 1095 (9th Cir. 1999) (en banc); Muniz v. Amec Const. Management, Inc., 623 F.3d 1290, 1295-96 (9th Cir. 2010).
Under a de novo standard of review, it is the Plaintiff’s burden to prove their disability by a preponderance of evidence. Muniz v. Amec Constr. Mgmt., 623 F.3d 1290, 1294 (9th Cir. 2010). This means it is the Plaintiff’s responsibility to produce evidence demonstrating that the plan administrator incorrectly denied benefits. The evidence must establish that the claimant satisfies the definition of disability in the policy. See Abatie v. Alta Health & Life Ins. Co., 458 F.3d 955, 963 (9th Cir. 2006). Essentially, it is the court’s duty to determine whether or not the evidence supports disability.
If you are dealing with a disability claim that has been denied by an insurance company, contact the Law Offices of Kevin M. Zietz for a free consultation.
Businesses accept payments in many ways, which facilitate their cash flow. Many contract- or invoice-based businesses receive money through wire transfers or automated clearing house (ACH) payments. They may not need credit card processing.
Recent research by the Federal Reserve shows that just 16% of transactions in 2024 were done in cash. That number is down from 20% in 2021 and projects to continue declining. Businesses that sell directly to customers through a point-of-sale service, like retail stores and restaurants, and companies that sell products or services online need a payment processor. Americans are simply carrying cash less and using credit cards or online payment tools more.
What to Consider When Choosing a Payment Processor
Entrepreneurs have many options when it comes to payment processing for small business. The best payment processor for one business may not be the best for another. There are a number of considerations to bear in mind when choosing between payment processing companies.
Fees and Pricing Structure
Payment processing companies make money by charging processing fees on each transaction. Fees generally range between 1% to 5% of the transaction amount. If you’re selling in large volume, those percentage-based fees can add up fast. Alternatively, some payment processors may offer flat transaction fees.
On top of fees, many payment processing companies also charge monthly fees, like a subscription cost. Typically, processors that charge monthly fees have lower transaction fees, but not by much.
Ease of Use and Integrations
There’s a good chance you’ve been selling products already without a payment processor, so you want to ensure any new payment systems for small business fit into your existing model. Seamless integration with your bank account, website, e-commerce platform, and point of sale system will ensure you don’t miss a beat while getting set up. Likewise, you’ll also save a headache if your payment processor integrates with your accounting software or customer relationship management system (CRM).
Payment Methods
How will your customers pay you? How many locations do you need to accept payments? Restaurants are increasingly letting diners pay at their tables, meaning they need many more payment gateways. A clothing store probably only has one or two point of sale systems in a central location. A small dog food company may focus primarily on selling online, while supplementing the e-store by setting up at farmer’s markets.
Every business has a different sales strategy, which will impact what kind of payment methods you need to accept. The most popular payment methods today are credit and debit cards, e-wallets, and mobile payments. You’ll want to find a company that supports online payment processing for small business, as well as the payment options your customers most often use.
Customer Service
If a payment processor glitches or stops working, you can’t sell your products. That’s very bad for business. The best payment processing for small business is payment processing that works. While the top companies have reliable tech, you’ll want to verify that their customer service is reliable, too. Should a problem arise, you need to be able to reach customer service and have it resolved quickly.
Top Payment Processors for Small Businesses
The best payment systems for small business can make your life easier and help your company grow. We breakdown some of the top options below.
Square
One of the most popular choices for small businesses due to its flat-rate pricing and no subscription fee, Square offers user-friendly features to help small business owners. Square’s payment processing supports both online payment processing and POS systems to support business that make both online and in-person sales.
Square doesn’t have any early cancellation, activation, refund, or chargeback fees, making it very appealing for small businesses working on thin profit margins.
Another cool perk? Square offers free POS software and includes a free mobile device card reader to support in-store credit card processing.
Pricing:
6% plus 10 cents for in-person transactions
9% plus 30 cents for online transactions
No monthly fee
Stripe
Another company known for flat-rate pricing, Stripe is one of the best online payment processors for small business. Stripe’s features are tailored to e-commerce and retail companies, offering both virtual and physical terminals, integrated invoicing and billing, and a wide range of platforms and extensions to work with your business’s existing tech tools.
Stripe also accepts payment in 135 currencies, making it a great choice for small businesses making international sales.
Pricing:
5% plus 30 cents for in-person transactions
9% plus 5 cents for online transactions
No monthly fee
PayPal
PayPal is a giant that more or less paved the way for online payment processing. Today, PayPal supports online payment processing for small businesses, charging customers with invoices, and in-person payments. It’s a versatile payment processing solution that lets small businesses accept credit and debit cards, contactless payments like Apple Pay and Google Pay, and PayPal direct payments.
One bonus of using PayPal is that if you also implement their traditional payment solutions like PayPal Checkout and PayPal Payments Standard, you’ll pay lower fees.
Pricing:
29% plus 9 cents for in-person transactions
89% plus 49 cents for online transactions
No monthly fee ($5/month for Payments Standard, $30/month for Payments Pro)
Shopify
One of the best online payment processors for small business is one of the world’s largest e-commerce platforms. Shopify is a comprehensive e-commerce solution that’s uniquely suited to helping online businesses thrive. Primarily known as a platform to build online stores, Shopify also hosts stores and processes payments. Payment processing for small business is a breeze if you’ve already built a Shopify store. (Even more so when you consider that using outside processors incur extra fees.)
Shopify payment processing offers 24/7 customer support, fraud analysis, shipping discounts, and support for dozens of currencies.
Pricing:
4-2.9% plus 30 cents per transaction
Starts at $29/month paid annually
Helcim
Helcim is a merchant services provider that uses an interchange-plus pricing model, which means your business saves when a customer uses a card with low interchange rates. Not only that, but Helcim also offers discounts if you process more than $25,000 monthly, making it a good choice for businesses that are growing rapidly.
Helcim provides mobile device processing, a POS system, a virtual terminal, and integrated merchant accounts.
Pricing:
Interchange fees, plus 0.3% of total transaction cost, plus 8 cents for in-person payments
Interchange fees, plus 0.05% of total transaction cost, plus 25 cents for keyed transactions
No monthly fee
Conclusion
Every business needs to find ways to get paid for products and services as efficiently as possible. Payment processing for small businesses is a vital consideration for any entrepreneur.
Whether your business needs to accept credit card transactions in-person or process online payments, there are many payment processing tools to support your business.
The best payment processing companies can support your business operations from point of sale through accounting challenges, making it easier to collect payments and manage your finances.
FAQs
What is a payment processor for small businesses?
A payment processor is a company that allows businesses to take digital payments. This includes credit and debit cards, mobile wallet payments, online payments, and more.
How does a small business use a payment processor?
Every small business may use a payment processor in different ways. For instance, a food truck may use a payment processor at a physical point of sale terminal while set up at a music festival. A small business that sells phone chargers online may only use a payment processor on its e-commerce website. A small business that sells clothes in both a brick-and-mortar store and online can use a payment processor in both places.
What are the top online payment processors for a small business?
Two of the leading online payment processors for a small business are Shopify and PayPal. Shopify makes it very easy to build an online store and accept online payments, while PayPal offers many digital payment solutions to support online businesses.
What are the top payment processor providers for a small business?
Some of the best payment processors for small business include Square, Stripe, PayPal, Shopify, and helcim.
