Many of the services outlined in the previous sections can be marketed to small and microbusinesses with cosmetic changes in product names and descriptions. Prices should be adjusted upwards, significantly in some cases, to reflect their greater value to the more complicated financial activities of businesses.

The primary small business functions that should be offered are as follows:

1.      Epayments – Accounts Payable: The area would include advice on how to automate accounts payable through online bill payment and financial messaging, what we have called Virtual Accounting Services.

2.      Ebilling – Accounts Receivable: This is the area where innovative bank programs could save business owners substantial sums, thus allowing banks to charge substantial fees. Small and microbusinesses would be encouraged to establish online billing services using bank programs, such as:

•          online billing statement presentment with integrated payment options
•          credit card payment option with email receipts
•          ACH payment option with email receipts
•          credit extension for the biller’s customers (see #3, below)
•          payment smoothing (averaging) services
•          turnkey paper and electronic billing services

3.      Buyer Credit Programs: As an adjunct to accounts receivable services, banks could offer credit programs for the biller’s customers. Customers needing additional credit to pay their bill could be referred to the bank for an instant credit application. This is a triple win. The customer wins because they can pay their bill, the bank wins because it picks up new customers and/or new loan balances, and the biller wins because they receive the funds with no collection expense. Depending on program pricing, billers could receive a share of the credit revenue stream as well.                                                  

HSBC’s http://us.hsbc.com/business  business product and services menu includes a section on “Making & Receiving Payments,” an excellent way to grab small business user’s attention.

Hibernia’s “Small Business Services” area includes links to “Online Business Assistants” including: finance manager, technology manager, office manager, sales & marketing manager, and human resources manager. It’s a great way to organize and promote a wide-range of banking services and resources.