Protecting Your Profits: 2 Ways You Can Secure Your Business Finances

Protecting Your Profits: 2 Ways You Can Secure Your Business Finances

You may be well versed at attracting customers, sealing deals, and ultimately turning over a profit, but are you as good at actually holding onto the money that you make? If you consistently fail to consolidate your incoming cash flow, there’s no point in you working hard to earn it in the first place. Failing to secure your business finances and protect your profits will constantly leave you struggling to break even, which will ultimately hold you back from investing in the ongoing growth of your organization.

If you want your business to scale the heights of its industry one day, you need to inject cash into it on a regular basis. You’ll only be able to do that if you put the advice laid out below into practice.

Here are two ways you can protect your profits and secure your business finances:

Limit your liability

No matter how much profit you turnover on any given day, you could lose it all in the blink of an eye if you’re ever held liable for an accident that takes place on your premises/land. An icy sidewalk outside your store, a greasy floor near your cash register, dangerous chemicals being left out in the open — if any of the customers that enter your workspace are ever impacted by these safety hazards, you can be sure that they’ll seek to claim the compensation that they deserve. The lengthy lawsuit that follows will no doubt have a very negative impact on your profit turnover and cash flow.

If you want to avoid having to shell out boatloads of cash in the form of customer compensation, it’s essential that you limit your liability. You can achieve this by:

  • Working hard during the wintertime to ensure that your outdoor walkways are free of ice and snow
  • Keeping your floors clean, tidy and dry at all times to lower the likelihood of slip-and-fall accidents taking place within your workplace
  • Ensuring that chemicals are kept hidden and locked away at all conceivable points
  • Employing an inspector to perform a safety audit within your workspace
  • Taking out comprehensive liability insurance

Come up with a chargeback prevention strategy

Thanks to the U.S. chargeback policy (which is legislated in the eyes of the law by both the Truth in Lending Act and the Fair Credit Billing Act), all American consumers are able to force a refund if they feel they want/deserve one. This is a problem for merchants like yourself, as it means that you will have no choice but to give up the profits that you work hard to make if your customers ever demand their money back.

If you’re currently having to deal with a high ratio of chargebacks, it’s essential that you get it under control. Only then will you be able to truly consolidate and protect your profit turnover.

When coming up with your own comprehensive chargeback prevention strategy, you need to first invest in the Limitless high-risk merchant account solution to help you prevent chargebacks. Then, you need to find out why so many of your customers are requesting chargebacks (this problem could be a result of fraud on the customer’s part, but it could also be down to you not providing a good enough service). 

Only once you have carried out the first two steps can you continue. After you need to:

  • Make use of clear payment descriptors
  • Understand the warning signs and red flags that indicate suspicious orders, disputes, and ultimately chargebacks
  • Improve your customer service standards
  • Follow specific Card Not Present (CNP) requirements
  • Use an alert system that will help you to spot and subsequently manage your disputes before they turn into chargebacks
  • Take some time to evaluate your current payment processing solution

If you want to protect your profits, secure your business finances and steer clear of negative cash flow, start with the above tips. 

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