Businesses 'should expand payment options'

It is vital that businesess ensure they recevie payments on time, it has been reported.

Small businesses are being urged to be proactive in ensuring they continue to receive money owed.

As the economic crisis rumbles on, a News.com.au article points out that the length of time it can take firms to receive payment has risen from an average of 30 days to as long as 90.

Consequently, Suncorp suggests in an effort to sustain cash flow, organisations should look to offer a variety of payment methods - including credit cards, BPay and EFTPOS - to their customers.

"If cash cannot be received quickly enough, businesses may not have the funds to pay bills when they're due," Suncorp executive Terry Wasmund states.

The bank also suggests the use of business credit cards to help fund small purchases, as doing so could allow companies to benefit from interest free periods of up to 55 days, if the card is paid off in full at the end of each month.

Offering the choice to pay by credit and debit cards was also advised by Ben Conway, manager of merchant direct sales at ANZ, who recently stated that small businesses need "to give customers options these days".

Written by Nate Sawyer