Is it good to have a “Cash-only” Business?

21 March 2012
Author: Maria

Last week I created 5 top reasons why I should accept Eftpos. Today I am going look into the benefits of having a cash only business.

A lot of small businesses operate as “cash only” business since cash is considered the most frequently accepted and accurate mode of payment for a business. With the advances of technology, business owners are recently facing the predicament whether they should contnue limiting payment options or not.

If you consider continuing to have a cash only business, here are some of the benefits that will surely be a relief to you.

Having a cash only business is an assurance that your business receives funds instantly. Hence, the improvement of your business’s cash flow and more than that, you may not worry anymore of the waiting periods or not getting paid at all.

Since it is the easiest mode of payment, accepting only cash minimizes your business’s bookkeeping activities. With that, everything will be less stress, less hassle, and you could even have extra earnings from the time and labor that were saved.

Accepting only cash also reduces the risk of fraud. Of course, cases like counterfeit cash payment might happen but compared to accepting credits, cash transactions carry lesser fraud.

With cash only business, vendors also need not worry about issues created by third parties or fees in line with other payment modes.

However, as much as cash only business is beneficial, there sure will always be other benefits you can get from accepting other payment modes. At the end of the day, you will need to decide which payment options will create the most success for your business.