Successful business owners are like boxers. They are disciplined, have a solid game plan, and know how to bounce back from a punch in the gut. Those with the endurance to adapt and grow in response to changing market dynamics, customer demands, and competitive pressure are left standing at the end of 12 rounds.
You have a front-row seat to business owner activity as a software provider. Sometimes there is a clear need for change, like adding staff or implementing new software. At other times, formed habits can limit a business owner’s efficiency. When you spot the signs that a business owner is ready for an upgrade, it’s a chance for you to step in as a coach. Especially when it comes to improving tasks like accepting payments, invoicing customers, balancing sales against bank deposits, and tapping into working capital by offering embedded finance in your software.
The result? A more efficient business model for your customers and new revenue sources for you! There are a few tell-tale indicators a business owner is ready for embedded finance:
1. They use a stand-alone terminal for payment processing
Old-school, single-purpose payment terminals have been around since the 1980s. Sure, the technology has evolved, but one thing hasn't changed: the transactions must be manually reconciled with sales and bank deposit activity. Plus, keying in payment information (like invoice payments received in mail) is prone to human error.
How to win:
Integrating payment acceptance as a feature in your software under your brand makes it easy for your business owners' staff to capture card or bank account details using the same software they use to run their business. Payments, whether captured in -person, online, via invoices, or as a recurring or subscription service, are initiated within your core software. This simplifies the process and gives business owners a holistic view of all the transaction activity and customer purchase history.
2. Their digital invoices aren't digital
We get it: when a business starts with a few dozen invoices, taking payment over the phone is manageable. As the customer account grows, the monthly process of creating, sending, and collecting payment for invoices -- not to mention the wait for customers to call, or even worse for paper invoices to be mailed back, and playing phone tag to collect overdue balances -- becomes a huge time suck. Cash flow is impacted, especially when most customers wait to pay until the final due date (or after). For the customer, instead of being able to pay when they want online, they have to work around the business's availability, wait on hold, get transferred to the right person, and read out their card information. It's an insecure, time-consuming fiasco.
How to win:
Digital invoices with built-in payment acceptance are a quick and easy way for business owners to get paid. Integrating invoices within your core software allows your business owners to open a customer’s record, input invoice details - such as line items, amount, and date due - and email an electronic invoice. Recipients simply click a button and enter payment details in a secure online form. Once approved, a digital receipt can be automatically sent, and invoice history can quickly and easily be accessed from a secure customer vault. There's also text-to-pay for customers who are always on the move or prefer a more personal approach.
3. They get payment processing and banking
from separate providers
Juggling software and financial services from multiple vendors is complicated. Separate contact, contracts, system access, and reports take away time business owners could spend growing their business. Plus, when payment transaction totals don't match bank deposits, the lack of communication between the payment processors and the bank can be frustrating (to say the least); often, finger-pointing ensues.
How to win:
Offering payments and banking as core features in your software allows business owners to “follow the money.” This means they can streamline payment acceptance and automatically settle the funds to a linked checking account, complete with a Visa® debit card. A partner backed by a federally regulated bank simplifies the experience to one relationship, contract, and integration layer so you can get to market faster and offer business owners an easier onboarding experience.
4. They have a hard time finding support
Sure, self-service is convenient for everyday things like car washes and grocery checkouts. But when it comes to important business functions such as payment processing and bank deposits, searching through online self-service directories, or emailing customer support and waiting a day for a reply can result in lost sales and customers. Many third parties don’t have a direct relationship with the business owners; they simply provide the connectivity. And many software providers avoid servicing business owners at all costs. This leaves business owners feeling like nobody’s got their back.
How to win:
It’s all about balance. You understand your customers and their challenges, and you’ve built software specifically designed to address their needs. The right embedded finance offering becomes an extension of your software, and the right partner offers self-service and live expertise. This way, no matter when your business owners need it, there is an answer. And they get to choose the best way for them to get the answer.
5. They can't easily access working capital
Things break, systems need upgrades, and times change. Unfortunately, when more funds or resources are required, many business owners tap into their personal savings or ask friends and family for financial support. Filling out a lengthy loan application, going through an extensive underwriting process, and potentially getting declined after all is a cumbersome process. Especially when all that’s needed is a smaller amount to get over the hump.
How to win:
By offering lending services as part of your software, your customers can easily access the working capital they need to invest in their business. Visibility into payment activity, bank balances, and other business indicators means that lending decisions are less risky and fast. A simple pre-approved “click-to-accept” application in your software saves the day and gives your business owners one more reason to thank you.
Choosing the right embedded finance partner, like Maast, allows you to remain focused on your core business while becoming a hub for business owner activity. Said another way... when business owners are taking jabs, be the coach that helps win the fight. Nobody puts baby in the corner!
Visit maast.com to learn more about how to bank on your platform with Maast.