Blog
Dec 05 2014 |
Is your business a bank?By: ValidateNow.co
Most small businesses define themselves in terms of the goods and services they provide. They believe that the scope of their business is confined to the service or product they produce. What they may not realize however, is that in many cases their business is also a bank. This is of course true if your business extends credit or terms to your customers. Any business that provides goods and services to a consumer, and does not receive payment at the time services are rendered, all the time every time, is in essence operating like a bank.How many businesses think of themselves as a bank? Very few I'm sure and thats the problem. You don't call yourself Tim's Chiropractic and Bank Service, do you? Your a chiropractic office, you see your business as a wellness center, or a doctors office. But a bank? Yes a bank. Because that patient that just walked out the door of your practice without paying in full, has now just received a loan from your business. This principle is true for any business that is not paid 100% of the time up front and in full when services are rendered.Run an aging report of your A/R. Every one of those open invoices on your A/R is a short term loan that your business is extending, in short an “I owe you”. So this begs the question: what is your business doing to operate like a bank?Banks protect themselves by having clearly defined contracts. Researching the payment history of the consumer. Securing collateral, or attaching collateral to the loan, and even having co-signers in the event the primary signer defaults. On top of all this banks also have a huge wealth of resources to chase after and collect on outstanding debts, as well as the ability to impact your credit.Many of theses protections afforded to banks were difficult or impossible to take advantage of for small businesses, until now. Validatenow.co allows small businesses to see a consumers payment history before they become your A/R's problem. In addition, Validatenow.com give you the power to affect the credit rating of a consumer, thereby giving the consumer a very compelling reason to pay their bill.With Validate you are no longer blindly lending money to consumers, and you can stop worrying if those 90+ customers will ever pay. Validate works. Its simple, professional, convincing, and its guaranteed. So start running your A/R more like a bank and join Validatenow.com today and see how much more profitable your business can be.
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