About cash flow measures for the restaurant industry. invoice Adjust the payment of purchases and rent by card payment

"Even though weekend sales have returned, the account balance is difficult when the payment of food purchase and rent at the end of the month overlap."
Such problems are not uncommon for restaurant owners and accountants.

The restaurant industry is a business type where payment such as purchasing ingredients, alcoholic beverages, consumables, store rent, and advertising expenses are likely to occur first, even if sales are generated through daily operations. Moreover, sales of Credit card payment and QR code payment are often deposited at a later date, and the busier the season, the more likely it is that there is a cash gap that "sells but does not have enough cash".

One of the measures to address this funding gap is "invoice card payment", which switches the invoice specified by the Bank transfer to Credit card payment. Among them, the "Invoice Card Pay byGMO" provided by GMO Payment Gateway (hereinafter referred to as GMO-PG) is easy to adjust the timing of payment up to about 60 days later, and the business partners are Bank transfer in their own names, making it easy to use while considering the relationship with suppliers.

The structure of "purchasing first, depositing later" that makes it difficult for the restaurant industry to cash flow

It's not just a lot of payment that makes it difficult for the restaurant industry to make it cashier.
The structure itself, in which payment leaves first before sales are credited, is easy to be a burden.

For example, cash on hand is likely to become thinner in the following situations.

• When increasing the purchase of food and alcoholic beverages for year-end parties, welcome and farewell parties, and tourist seasons
• When the number of visits to the store increases due to SNS and media exposure, and you want to place additional orders in a hurry.
• When payment such as purchase costs, store rent, and advertising costs overlap in the same month
• When the purchase timing and payment of each store overlap in multi-store operation.
• When delivery and takeout orders increase and you want to add food and container purchases

In particular, the restaurant industry is a business type that tends to occur in a situation where "sales are moving, but funds cannot be used freely". Even if you have an image of cash business, in reality, due to the increase in the cashless ratio, sales may not remain on hand on the same day. That's why you need to look at not only profit management, but also when payment comes out and when it is deposited.

Invoice Card Pay byGMO is one of the options to adjust the timing of the payment

An easy way to consider a countermeasure to this funding gap is "Invoice Card Pay byGMO".

In this service, you register the invoice information specified by Bank transfer on the web and apply for a payment with a credit card. payment is then paid in Bank transfer, and the actual spending from your account will occur on the date of the credit card company's withdrawal. It can be used by registering as a member, registering a credit card, and entering invoice information, and is completed on the web.

The reason why it is easy to use in the restaurant industry is that you do not have to change the way you receive it from payment customers (suppliers, landlords, etc.). Since the business partner is paid in Bank transfer as usual, and the transfer name is set to your company name, you do not need to ask the other party to change the payment method.

In addition, we support a wide range of payment such as outsourcing costs, advertising costs, purchasing costs, and rent. However, some of them are not covered, and the expenses that can be handled vary depending on the credit card brand. It is assumed that you check in advance whether the expenses you want to use at the restaurant are eligible.

Three situations that are easy to face in the restaurant industry

1. Months before the peak season

During the year-end party season, welcome and farewell party season, holidays, and busy tourist seasons, when sales are likely to grow, purchases will increase before that. Even if sales can be collected later, the purchase cost will come payment days earlier, so it is compatible with the month when you want to fill the financial gap.

2. When there are sales, but the payment is still far away.

Even if cashless sales are piling up, they are not yet reflected in the cash on hand before deposit. Invoice Card Pay byGMO makes it easier to shift payment such as purchase fees and rent backwards, and it is easier to create a bridge to payment.

3. When multiple payment overlap in the same month

In restaurants, not only food procurement but also payment such as rent and advertising costs overlap. Especially during the period of multi-store operation and new menu development, expenses tend to swell, and there are more situations where you want to prepare the overall cash-out timing rather than "wanting to delay any one".

What to think about the 3.0% commission

The fee for using Invoice Card Pay byGMO is 3.0% of the payment amount, with a minimum fee of 1,500 yen. For example, if you switch to credit card payment for a purchase of 1 million yen, the fee will be 30,000 yen.

Whether this 30,000 yen is considered high or cheap is realistic in the restaurant industry in terms of gross profit and lost opportunities.

For example,

• Prevent shortages and protect sales opportunities
• You can avoid running out of food during the busy season
• You don't have to cut your purchases for rent payment

If it is a month with such an effect, it is easier to judge it as a cost not as a simple cost, but as an expense to keep the business from stopping.

On the other hand, if you focus on products with low gross margins, or if there are many discounted sales that make it difficult to absorb commissions, it may not be suitable for you every time. In many cases, it is easier to use it as an option for months when funds tend to be clogged rather than using it regularly.

4 points to check before introduction

1. Is the invoice you want to payment with your credit card included in the target expenses?

Invoice Card Pay byGMO covers a wide range of expenses such as purchasing costs, rent, and advertising costs, but some are not covered. First, you need to check if the payment you want to use in your company is eligible.

2. The actual number of days that can be extended is not constant

You can extend your payment by up to about 60 days, but not always by 60 days. Credit card payment Varies depending on the application date and the date of withdrawal of the card.

3. The maximum amount of use depends on the credit card limit

The amount spent is basically within the usage limit of the credit card you have. The more companies that use other credit cards at the end of the month, the safer it is to check in advance the slots that can be used for purchases.

4. There is a review of use

There is a prescribed review by GMO Payment Gateway for use, and depending on the results of the review, it may not be available. If you want to prepare for an urgent payment, it will be easier to make a decision if you check the conditions first, not after you need it.

Not suitable cases

On the other hand, it may be better to prioritize other measures in the following cases:

If you want to fill a chronic deficit

While this service is suitable for short-term funding gap adjustment, it is not a solution to the deficit structure itself. Since there is a fee, if you continue to use it as a permanent deficit to fill the gap, the burden may increase.

When long-term funding is required

The mechanism of delaying the payment by up to about 60 days is only suitable for short-term adjustments. For securing long-term funds, such as store renovations and large-scale investments, other means such as bank loans are suitable.

If it is difficult to absorb fees

If the gross profit is thin or if it becomes unprofitable if it is used regularly for payment per month, it is safer to think on the premise that the frequency of use is reduced.

Frequently Asked Questions

Q. Can you tell your supplier that you are using invoice card payment?

payment Deposits are made in Bank transfer first, and the transfer name can be set to your company name. payment You do not need to notify us of your use of the Service in advance.

Q. Can I use any invoice?

Bank transfer invoice assumes that it is a business-to-business payment. Not all payment are eligible, so you need to check beforehand.

Q. Is there a cost when registering?

There are no initial or monthly fees, and the only cost required is the usage fee.

Q. Who pays the fees for Credit card payment?

The payment using the service will bear the burden. The fee for use is 3.0% of the payment amount, with a minimum of 1,500 yen. (The transfer fee is included in this fee)

Conclusion

In the cash flow of the restaurant industry, it is necessary to look not only at "whether there is sales", but also when payment such as purchases and rent will come out and when sales will come in. In particular, purchasing before the busy season or in months when multiple payment overlap tend to be temporarily tight even when profits are expected.

Invoice Card Pay byGMO is an option to switch Bank transfer designated invoice to credit card payments and adjust the timing of payment in such situations. Registration is free, and the only cost required is the usage fee. On the other hand, the maximum number of days of about 60 days is not fixed, and there is a predetermined review for use, and it is essential to check the target fee items and credit card conditions.

It is not used as a "means to be used every month", but in preparation for the busy season or the month when purchases are inflatedFinancing optionsIf you prepare the usage environment, it will be easier to make decisions when necessary.