A startup’s financial needs are in a lane all their own, which is why legacy bank financing programs and traditional forms of payment processing aren’t a good fit. For small but mighty businesses, especially those raising or looking to raise investor capital, it’s more important than ever to establish reliable payment systems that ensure financial tracking and speed of transactions. Investors want to watch their capital move in ways that build the business and their portfolio, so being able to capture and share data is essential.
Startups also come with a unique collection of early business operation costs needing upfront financing. Legacy banks often aren’t built or willing to support this, especially when the business is brand new. That’s why finding an alternative, accessible financing partner with flexible payback plans is integral. And yes - this exists! We’ll get into it below.
For most, the payment obstacle that hits closest to home is creating a trustworthy and consistent experience for customers. Whatever you’re selling won’t stand a chance if a laggy checkout experience or unreliable payment screen are in the way.
No matter what business they’re in, financials look different for startups, and having a trusted payments partner makes all the difference. If you’re a business owner bravely navigating the startup territory, here’s what you need to consider when choosing your payment processing partner.
1. Are your payments and transactions trackable and trustworthy?
If you’re a startup with investors, this is especially important. Not only should you be certain when capital will be available for use, but sharing financial data is also the best way to ensure your investors are happy with where their money has gone and boost their confidence to invest more. Payment processing company Stronghold uses blockchain technology in all of its tools, which allows a startup to receive visibility and analytics on funds in real time.
2. Can you afford your financing?
Money up front is great, but what about when it comes time to repay? Many traditional institutions offer generous financing but have strict payback requirements that can leave startups in a worse position than they started, especially when business is just getting off the ground and income is still fluctuating. Businesses that use Stronghold’s payment tools have access to its unique financing program, where repayment happens on a fixed percentage of sales instead of a flat fee. When profits are high, you’ll pay more; when sales are lower, you’ll pay less to give your business time and space to grow. Plus, unlike investments, this funding model doesn’t dilute ownership. You take care of business; Stronghold processes transactions and supports your capital needs.
3. Your product is great, but how’s your customer experience?
Checkout is the final stop for your customers before they receive their product. It sends a signal that your business can be trusted. If your checkout page or POS system is clunky, fragmented or using slow payment programming, it can send customers running. With Stronghold’s innovative application of ACH payments for retail purchases, card processing tools, and seamlessly branded checkout processes, it streamlines your customer’s order experience so your growing business can focus on what it does best, creating an incredible product.
Whatever stage you’re at in building your business, finding partners and tools that match the innovation of your product and vision is an invaluable step in its sustainability and growth. Stronghold is changing the way businesses of the future handle payments by creating simple but powerful payment tools and financial infrastructure for all. If you’re ready to transform the future of your startup through payment innovation, browse Stronghold tools here.