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Wednesday
Apr302014

Bitcoin for Small Business

Bitcoin has gotten a lot of media attention lately related to both its growing popularity as a payment solution and the rise and fall of its value price. Below we explore Bitcoin and the implications of it as it pertains to small businesses. In addition, we offer a tips for businesses who want to start accepting Bitcoin as a viable payment option.

What is Bitcoin?
Bitcoin is a digital currency in which transactions can be performed without the need for a central bank. Bitcoins can be purchased on an exchange and are stored in a digital wallet in the cloud or on a user’s computer. The owner of the wallet is provided a private key which is required to prove ownership. If a private key is lost, the user cannot prove ownership by other means. The coins are then lost and cannot be recovered.

While bitcoin is not yet recognized as a “currency”, it is similar to accepting payment in other forms, such as cash, gift cards or foreign currency. Bitcoin offers an anonymous way to pay for goods and services, as payments transacts through a private online account. Transactions are recorded on a public log but names are kept private, and instead each transaction is tied to its digital wallet id.

Tips for Businesses Who Accept Bitcoins

  • As your business initially starts to accept bitcoin, you may find that the easiest way is to accept it only for the purchase of gift cards, and then require the gift cards to be used for actual purchases of goods or services. By doing it this way, you can use established accounting practices to track receivables.
  • If you mail invoices, you may want to indicate that you accept bitcoin on the invoice itself, along with instructions to access the unique bitcoin address to which to send payment. It is recommended that you change this address with each new invoice for tracking and security purposes.
  • In order to reduce the risk of fraudulent use of bit coin, avoid letting people try to type Bitcoin addresses off payment stubs - instead, force people to get the full Bitcoin address from your website via secure SSL.
  • The value of a bitcoin can fluctuate. Therefore, it is recommended that you disclose payment terms on your invoice clearly and specifically - For example, if your invoice is for $100 and bitcoins are currently worth $1.24 each, your invoice might suggest that it can be paid in full "with a payment of 80.65 BTC if paid by (date)”.
  • Bitcoin Merchant Services are also available that will assist in processing a transaction. A list of options can be found here.


While it may take some time to become a common form of payment given the reluctance of banks to adopt it and the fraudulent activity that surrounds it, Bitcoin remains a viable payment option of the future. As such, it’s important for small businesses to be at the forefront of this technology in order to remain competitive in the marketplace.

About FACTOR KING®
At Factor King®,  our mission is to provide crucial funding to small and middle tier companies that may or may not have access to adequate bank financing. Through our leverage of various technologies, our systems and procedures provide fast and accurate factoring, simple order processing, and ease of use - allowing our clients to focus on building their core business. Client growth is how we measure our own success.  Apply now to convert your company’s assets into immediate cash!

Related Articles:
Customers Don’t Pay On Time? These Tips for Collecting on Overdue Accounts Can Help!
Startup Capital: Top Ten Benefits of Factoring Invoices
5 Tips for Managing Invoiced Receivables

Tuesday
Apr222014

The Impact of Obamacare on Small Business

There is no question that The Affordable Care Act will affect small businesses, and business owners need to be familiar with the overall impact of Obamacare on their bottom line. From changes to the business health insurance system to required employee education and possible tax breaks, Obamacare is complex and will effect all types of businesses. If you own a small business, here are some primary considerations to take into account as you navigate this new era of healthcare offerings.

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Wednesday
Apr162014

The Short But Sweet Guide To Google Places For Business

Considering 85% of consumers search the Internet for local businesses, securing a Places listing is vital to remaining competitive. Here are some of the benefits of having a Google Places listing for your small business:

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