Small businesses are facing a challenging landscape, with an alarming average of 30% of monthly invoiced sales reported as overdue. This situation is particularly dire for small business owners who are struggling to maintain their operations in a volatile economy. To combat this financial strain, adopting a buy now, pay later (BNPL) mentality can be a game changer. The BNPL model allows customers to split their payments into smaller, manageable installments, which can significantly boost sales and conversion rates. This approach not only enhances customer accessibility but also positions small businesses as customer-centric in a competitive market. Alongside implementing BNPL, small businesses should revisit their invoicing processes to ensure timely billing, create a rainy-day fund for unexpected costs, cut unnecessary expenses, tighten credit policies, and strengthen follow-up processes on overdue invoices. By proactively addressing these financial risks, small businesses can stabilize their cash flow and improve their chances of survival during tough economic times.
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