Handy ways to save your company money

These are tough times for any business, but the ones that seem to catch the brunt of any economic downturn are small companies. Low turnovers or high-risk industries make them less appealing to lenders, which can mean disaster when times get tough. All is not lost though. With the right investments and processes in place, even those in the toughest spots can find ways to decrease costs and increase profits.  

Tribal lending difficulties

There are currently over five million Native Americans in the US, and about 22% live in reservations. However, tribe-owned businesses remain underserved by the available financial institutions. The situation is because the traditional bank systems lack the necessary understanding to assist tribe-owned small businesses in running their businesses effectively.

The unwillingness of conventional banks to lend to these tribal small business owners has led to extremely high-interest rates and them being labeled as high-risk. Inevitably, these business owners can only access loans at over 100%, which can offer quick relief but feed into long term financial problems.

Native American business owners running non-traditional businesses such as marijuana dispensaries and CBD shops are at a higher risk of exploitation from payment solution providers.

Partnering with a tribal lending company or payment solutions provider that is well acquainted with these issues can help to save your company money.

CBD payment problems

CBD businesses experience greater difficulties trying to secure reliable payment solutions, despite the growing need for debit and credit card incorporation. These hurdles arise from the lack of knowledge surrounding the legal environment of the CBD industry.

Most CBD businesses operate on cash transactions only. However, they have a significant growth potential if matched with a payment solution partner. For these businesses to find the right payment solutions provider they must fully understand the legalities of selling CBD products. For example: identifying the necessary licenses required for the sale of CBD according to local and state laws. Also, acquiring the required approvals of the product quality before selling.

Payment solution providers base their work on the relationships they have with various reputable banks. Consequently, they will only work with businesses that they can trust, and one of the major determining factors is CBD compliance. It is also important to consider how you market CBD, as your reputation, and that of your payment solutions provider, could be negatively affected by it.

Integrate credit and debit card processing

A business runs the risk of falling behind if it does not take credit or debit cards. However, it is vital to engage a payment partner that does not require a complete uprooting of your system.

Credit and debit card processing is a proffered method of payment by most clients because of its increased convenience. Ensuring these systems are always running and never down reduces the chances of losing money and customers. All payment solution providers charge operational fees, however, do not settle for a provider that costs too little or too much. Luckily, most offer the opportunity to negotiate the percentage fee.

The value of customer support

Businesses lose money when payments go wrong. This can be through chargebacks, payment fraud, or inconsistent suppliers. Efficient payment solution providers should offer support for their clients to deal with any discrepancy that arises. Due to different time zones, it is important to select a provider that offers customized customer support.

Using a debt repayment program

Debt Repayment Programs (DRP) help businesses save money through the subsidized interchange fees charged. State licensed lending companies benefit significantly from this program as, in most cases, customers prefer to use debit cards and prepaid cards for repayment. To increase efficiency and save on costs, always select a solution that works with both Visa and Mastercard.

The FLEX Payment DRP supports both card types, as well as debit and prepaid cards. The program also allows merchants to charge an optional convenience fee to help cover your costs. This fee can be set at up to $4.99 per transaction. Additionally, there is a cap on the interchange fees despite the size of payment.

FLEX Payment options

FLEX Payment Solutions offers numerous methods of payment. Debit and credit processing are available to all types of legal businesses, including as pawn lending, tribal lending, vape shops and hemp-driven CBD.

eCheck 21 allows merchants to settle electronic payments through the check network with the same time efficiency. FLEX Payment Solutions also offers ACH, which are primarily electronic transactions carried out over the ACH network, contactless payment, Text 2 Pay and DRP.

We understand how important it is to select a card processing company with extensive experience in your industry. FLEX Payment Solutions can provide guidance regarding the legalities and offer specialist knowledge for companies in the hemp-driven and CBD industry as well as in tribal lending.

Whether your business is online or retail, big or small, we have the right payment solution for your business.  Contact us today to identify the solution that offers you the best money-saving opportunities.

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