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December is generally a source of great income for companies around the world who seem to make a good profit out of the holiday spending craze that goes about during the season. With the wide array of payment options, from online credit cards, to options as simple as writing a check, consumers seem to have no excuses for purchasing their favorite items. But according to numerous surveys in recent years, the end of the year period can be quite stressful for small business owners.
Although many are reported to make a good percentage of their yearly sales during this period, certain financial struggles seem to intensify for them. Such is the case of providers or consumers not paying on time. Late payments have become a constant for smaller businesses who have to handle their finances on their own, since they can’t afford to have outsourced services to take care of this.
Availability of resources becomes scarce, given that their services are being provided (which entails putting their operations to work, manufacturing their goods and paying their employees) but they are not being paid. This puts an enormous amount of stress on owners who have already made a significant investment in setting their business, especially considering the harsh economic climate they have to deal with.
For retailers and businesses that require immediate payment at the point of purchase, end of year has come to be the origin of their chargeback stress. With so many purchases being made, sometimes it is difficult to keep track of who, what and how items are being bought. This becomes particularly problematic with e-commerce sites, who are constantly vulnerable to fraudulent purchases made with stolen credit cards or fake Ids– when a company is continuously dealing with fraudulent purchases, their e-commerce provider might decide not to work with them. In such cases, we recommend working with one of the bigger e-commerce platforms out there who will be there to guide you in the right direction.
Some may suggest going back to the times where all that was needed was writing a check, but without clients that pay for their services on time, this seems highly unlikely. What small businesses are in urgent need of is a proper financial structure that will provide them the security to handle their payments, customers and e-commerce platforms easily– unfortunately this doesn’t depend solely on them. Of course, there needs to be a public scheme that aims to create a solid environment for small businesses to thrive, especially during the holiday season.
Big companies seem to have it sorted. But it is smaller, local entrepreneurs who year after year struggle to round up their finances. This is why it’s necessary for them to be on the lookout for strategies that will simplify their processes, expedite their client’s payments and support more honest decision-making when it comes to working with a provider or client.