28 February 2014 category: business administration & finance
Tags: business finance
There is an inexorable move towards payments being made online. A recent study by Mintel showed that whilst the cashless society is still a long way off (only 18% of people said they would like to do away with cash), the position is completely different with regard to cheques.
Here are the key facts:
- Only 41% of people have written a cheque in the last few months
- A third of people under 35 have never used a cheque
- Half of people under 25 have never used a cheque
Given the preference of customers for moving away from cheques, it is time for most small businesses to make it easier to pay in other ways.
One simple way is to put your Bank Account Name, Sort Code and Account Number on every invoice, preferably bold and in a text box. This means that 59% of your customers will be able to carry out their preferred method of payment – a bank transfer.
Research shows that this simple action halves the average time for payment.
There is no downside to this action. The dwindling number of people that prefer to write a cheque, address an envelope, put a stamp on it and go to the post box can continue to do so. On the other hand 59% of your customers will be much happier and will probably pay you much more quickly.
[Business finance is part of Section 02 of the Business Transformation Toolkit – www.stayoutfront.com/toolkit.]