Collecting payment from customers is one of the most time-consuming and frustrating parts of operating a small business. It’s great that people love your products or services and keep coming back for more, but when you accept payment in installments or on a subscription basis, it means that every time payments come due, your billing department has to chase down the customers who haven’t made this month’s payment or who have not updated their credit card information on file. The problem is even more burdensome for the smallest businesses; with only a few people to do all the work, scrambling to collect payment takes time away from other profitable activities such as fulfilling orders or marketing. The solution might be simpler than you think, if Facebook’s new proposal goes as planned. Whether or not you decide to have Facebook do the bill collecting for you, a Birmingham creditors’ rights attorney can advise you on how your small business can collect payments owed to it through legal and efficient means.
Facebook Invoice Fast Track Could Take the Hassle Out of Collecting Payment
Everyone below retirement age knows that Facebook is not just for humblebragging about one’s grandparenting skills and finding out things you never wanted to know about your siblings’ political beliefs. Facebook has been a boon to small businesses when it comes to communicating with customers and even concluding transactions. Thanks to new guidelines issued by the Consumer Financial Protection Bureau about online communications regarding debt payment, Facebook has announced the launch of a new program, called Facebook Invoice Fast Track.
The way that the service works is that participating businesses pay Facebook one percent of the face value of their unpaid invoices. Facebook then pays the invoices in full. Having bought the debt for 99 percent of its face value, Facebook then seeks payment from the consumers who owed money on the invoices. Pessimists say that Facebook is now adding collection agency to its list of unsavory roles, alongside rumormonger and schoolyard bully. For small businesses, though, Facebook Invoice Fast Track could be a dream come true. Third-party collection agencies buying unpaid debts is nothing new, but they do not usually buy the debts at face value. Participating in Facebook Invoice Fast Track does not mean selling debts at a loss. Furthermore, Facebook intends to program to be a source of support to underrepresented business owners. It will prioritize businesses owned by military veterans, women, racial and ethnic minorities, and people with disabilities. If you already use Facebook to connect with customers and process payments, then Facebook Invoice Fast Track could also help you collect payments more easily and free up your employees’ time and energy for other business activities.
Reach Out to an Attorney for Professional Help
Hassling your loyal customers about late payments takes the fun out of operating a small business. A creditors’ rights attorney can help you develop a payment collection strategy that evolves with the times. Contact Cloud Willis & Ellis for help today.