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Digital Currency

Slow payments means big bucks for some businesses; speed up your payments to strengthen your resiliency.

https://on.wsj.com/38qqMw8 Wall Street Journal - Digital Currency


I’ve been thinking a lot about the Wall Street Journal story about digital currency and the impact it could have on small business. The truth is, many institutions make money off of “slow” payments. With the immergence of digital payments, small businesses, contractors and vendors stand to benefit, immensely.


For example, to pay my contractors, it takes seven days for a check to arrive. If I want to send money via ACH, it’s three days (but I need bank account details). If a company is on 30-day payment terms via contract, odds are their employees are getting money that is 37 days old. Even if I paid by check on the same day as invoiced, the money doesn’t technically clear until days later. That’s a lot of interest held in bank accounts.


We all have credit cards. If we call our credit card company and tell them that someone bought a $2,000 computer fraudulently at Best Buy using our card, the credit card company refunds us the money. But they will also likely pay Best Buy and not even waste their time finding who committed the fraud. That’s how much money is currently being made in processing the transactions that we make on our cards every day. They would probably let $2,000 slip, because the $5 we spend at using our card at the grocery store more than makes up for it.


Small businesses in particular need to consider that if we can take 30-day terms to three days, that equals valuable for comps in our pocket.

At REBIRTH Analytics we are committed to putting more interest in your pocket by making vendor payments cheaper and faster.

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