Understanding the needs of small business owners is critical to the success of enterprise organizations serving this business segment, and with good reason. Small businesses have accounted for 63.3% of net new jobs in the last two decades. To help provide needed insight, we teamed up with Mastercard® to learn more about the cash flow dilemmas that keep small business owners awake at night. The result was the joint sponsorship of the Mercator Advisory Group report, “Prepaid Expense Cards: Helping Small Businesses Solve Cash Flow Dilemmas.”
The findings of the report clearly demonstrated that cash flow concerns are a significant obstacle for small business owners. That is not surprising because when money is tight, small business owners are unable to make the routine product and service purchases that allow the company to function. In fact, 71% of respondents surveyed by Mercator said they delay routine purchases at least once a year due to financial concerns.
Common Payment Types for Business
The study also identified the 16 most common B2B payment types used by small businesses, and researchers learned that tracking spending across such a wide range of options poses no small amount of difficulty. The most common payment method of days gone by, writing a check, has mostly fallen out of favor because the process is so cumbersome. Checks are now used primarily to pay for invoiced items while business credit cards have taken the lead as the most popular form of payment for company expenses. However, as outlined in the report, credit cards come with their own unique set of challenges.
With use cases to show real-world applications for the challenges solved through the use of prepaid cards for business, this research brief is a must-read for enterprise organizations serving the small business market. After all, the best way to help your customers grow is to identify what’s holding them back. Learning to address cash flow concerns and providing practical solutions to overcome them is one way to set your company apart from the competition.
Get your free copy of the detailed research findings – Download the report today.