Are you tired of struggling with cash flow and managing complex payment processes for your ecommerce business? Do you wish there was a way to free up your capital, extend payment delivery dates, and optimize your cash conversion cycle? Look no further than Plastiq, the payment platform designed to accelerate all aspects of your online business.
Managing finances in the world of ecommerce can be challenging, especially when dealing with multiple suppliers and vendors with different payment schedules. Cash flow is essential, and a shortfall of funding can impede growth and limit your ability to invest in inventory and advertising.
Fortunately, Plastiq offers a solution to these problems by providing access to credit and short-term financing. With Plastiq, you can streamline payments, consolidate your business finances, and manage your cash flow more effectively.
In this Plastiq review, we will dive deeper into the benefits of using Plastiq for your ecommerce company, and will explore how their suite of products can help take your business to new heights.
What is Plastiq? 🚀
Imagine a payment platform that empowers entrepreneurs by providing access to capital, and lets you tap into credit cards and financing to control your destiny. That's Plastiq, the ultimate payment solution that pushes the boundaries of what's possible for cash-strained companies.
Plastiq helps you optimize your cash conversion cycle, extend payment delivery dates, handle recurring payments, and maintain your high margins with just a 2.9% credit card fee, which is lower than most SMB loans.
By providing access to credit at a lower cost of capital, you are able to invest in inventory upfront, secure advertising now, and grow your business precisely when you have the most momentum.
With Plastiq, you can shift fees upstream, avoid crippling cash crunches, and simplify frustrating payment procedures, all while being protected by a military-grade level of security around your financial information.
Whether you're on-the-go or out of the office, Plastiq has you covered. Their mobile app allows you to manage payables from anywhere, while the desktop dashboard provides meaningful insights into your cash flow outlook. Plastiq provides ecommerce enterprises like yours with the tools they need to truly thrive in the digital economy.
How does Plastiq work? 🤔
Plastiq minimizes the headache typically associated with online payments by allowing you to use a credit card to pay suppliers, even if only checks or a wire transfer is accepted on their end. This feature alone helps you preserve your cash on hand and extend your financial runway.
In other words, you can pay bills through major credit cards, even in places that don't accept credit card payments.
Once the payment is processed, Plastiq sends a check or wire transfer to the vendor on your behalf. This turns what would otherwise be a complicated process into smooth sailing, ensuring that your suppliers receive payments on time and your business can focus on what it does best: acquiring more customers and generating revenue.
Plastiq also provides automated payment approvals, which allows you to pay vendors and suppliers faster. This feature saves businesses time and reduces the risk of errors associated with manual entry. With Plastiq, you can maintain a positive cash flow, invest in manufacturing, and launch advertising campaigns without being on the hook for payment until months in the future, when you've already received proceeds from sales that have been made.
In addition to its payment processing capabilities, Plastiq also provides businesses with a single point of payment. This makes it possible to juggle multiple vendors at once, allowing you to consolidate your finances and maintain a clear overview of your expenses.
After all, a healthy business is one in which you are aware of where your capital is flowing at all times. Plastiq makes this easier than ever.
Plastiq Key Features 🧰
Here are three key features that set Plastiq apart from other payment solutions:
Credit and Short-Term Financing
Plastiq provides access to credit and short-term financing to fund business goals and operational expenses. This feature frees up crucial capital, helps optimize the cash conversion cycle, and delays payment due dates, allowing companies to make significant investments upfront, secure the supplies they need to grow, and maintain the profit margins required to stay afloat in the cutthroat world of ecommerce.
Payment Processing and Consolidation
Plastiq streamlines payment processing and consolidates business finances, making it possible to keep your finger on the pulse of inflows and outflows, pay vendors faster, and maintain a clear overview of your financial situation. Plastiq provides a single point of payment for all payables, minimizing the difficulty in dealing with numerous suppliers and third parties.
Transparent Payment Tracking
Plastiq offers a high level of transparency when it comes to payment tracking. The platform lets you view scheduled payments and analyze cash flow at any given time, providing a clear understanding about your state of affairs. Plastiq also provides notifications about the status of payments, letting owners and operators know whether or not payments have been delivered to vendors.
Plastiq FAQs 🙋
Does Plastiq protect your data?
Yes, Plastiq offers bank-grade security, military-grade encryption, and tokenization for financial safekeeping. Plastiq also ensures the privacy of all customer data and follows strict security protocols to protect against breaches and financial fraud.
Are there fees involved?
Plastiq offers a lower cost of capital compared to most other loans, with credit card fees at 2.9%, which is competitive in the market. There are additional fees involved with a wire transfer ($5 for domestic, $39 for international).
Does Plastiq work in countries outside the US?
Yes. Plastiq Pay works in more than 45 countries in 22 currencies.
Plastiq Pros ✅
- Cash flow optimization: Plastiq can help businesses optimize their cash flow by extending payment delivery dates and freeing up cash flow for other expenses. By using credit card payments to delay cash outflow, businesses can extend their days payable and lower their cash conversion cycle, resulting in a more efficient use of capital.
- Cost-effective payment solution: Plastiq's 2.9% credit card fee is often lower than the rates of most loans small and medium-sized businesses will have access to. Additionally, Plastiq's fees for accounts payable are tax-deductible, increasing your bottom line.
- Simplified payment processing: Plastiq streamlines payment processing for businesses by providing a single point of payment for multiple vendors and suppliers. The platform also offers automated payment approvals, allowing businesses to reduce the time and resources spent on manual payment processing.
- Mobile app and dashboard: Plastiq's mobile app provides real-time access to payment information, allowing you to manage payables and track scheduled payments wherever you happen to be in the world. The dashboard also provides insights into key metrics, enabling you to make informed decisions and double down on the strategies that are working.
Plastiq Cons ❌
- Certain types of payments are not supported for short-term financing. Payments involving legal services, personal loans, government fines, and areas of that nature do not qualify.
- While Plastiq's credit card fee is reasonable, it may still be a significant expense for some businesses. If companies are unable to pay off their credit card bill in full each month, they may also incur interest charges on their outstanding balance.
- Plastiq does not provide customer service over the phone. However, they do have email and live chat support for any issues with your account that may arise.
Plastiq Pricing 💰
Plastiq has three plans available: Starter, Professional, and Enterprise. The Starter Plan is free, the Professional Plan is $59/month, and the Enterprise Plan is $119/month.
Plans are separated according to Plastiq Pay and Plastiq Accept. Plastiq Pay focuses on outgoing payments, while Accept focuses on receivables.
Final Thoughts 🕵️♀️
Simply put, Plastiq is a powerful payment platform that, when used the right way, can make a meaningful difference in your company's ability to prosper. By offering a suite of features and benefits, including flexible payment options, automated approvals, and mobile app and dashboard access, Plastiq is well positioned to help businesses of all sizes manage their finances more efficiently.
While there are some potential downsides to using Plastiq, such as credit card fees and limited payment methods, the platform's benefits tend to outweigh the drawbacks. Overall, as laid out in this Plastiq review, the platform is a valuable tool for ecommerce businesses looking to grow as quickly as possible, free up cash flow, and pay bills in a way that extends their payment date and financial timeline.
If this sounds like something you could take advantage of as an ecommerce business owner who is looking to optimize your operations, Plastiq is definitely worth considering.
👉 Sign up for Plastiq here.