For many small businesses, point-of-sale (POS) payment tech is a vital tool – the better equipped firms, the more sales they get. But a significant amount of businesses are losing out here. How can firms finance the upgrades they need to optimise their payment process?

Why are small businesses losing out when customers reach the till? According to a new survey from money.co.uk, almost half of the firms that it surveyed revealed that they had lost sales because of slow card machines. More than 60% of businesses put losses at over £2,500 and over 30% at more than £10,400.

The main reasons behind the problems with card machines, and the lost sales they are causing, are poor wi-fi, slow internet speed and high provider network traffic. At a time when small businesses are struggling to get customers through the door, they can barely afford such missed opportunities. This makes investment in better systems a priority.

Another reason for putting money into high-quality POS tech is the continued move away from cash use by customers, including on the high street. According to a study from ATM network Link, while cash is still used in around 45% of in-person transactions, the trend is clear, with 14% of small businesses going cashless in the last 12 months.

Interestingly, the key factors behind the move to cashless payments for small businesses are fraud prevention, security concerns and a lack of customer demand. Making bookkeeping and accounting easier to manage, a lack of deposit facilities and local bank branch closures were other reasons cited in the survey.

How alternative finance can help with workplace tech investment

What is stopping small businesses get up to speed when it comes to POS tech? One of main factors is cost. In the current climate, finding the money to invest in new systems, no matter how essential, is highly challenging, especially with traditional lenders continuing to be cautious when it comes to small firm lending.

So, how can businesses finance such investment, while safeguarding cash flow?

This is where alternative finance can help.

In response to this squeeze on lending, alternative finance has become into a vital lifeline for small firms. Solutions such as invoice finance, asset finance and peer-to-peer lending are filling the funding gap, offering speed, affordability and tailored support.

These agile funding facilitates are helping small businesses survive and target stability and growth. For example, asset finance is being commonly used for buying vehicles, machinery or equipment, while invoice finance is being employed to manage staff costs and, more broadly, to cover costs while income catches up.

Small firm finance options for investing in POS payment tech

Small businesses can ill afford to lose sales through POS payment tech failures. With the risk of such losses running into the billions for 2026 alone, the need to invest in better systems that reduce the volume of cancelled sales couldn’t be clearer.

However, such spending is far from straightforward for firms in the current climate. The demand on cash flow remains as acute as ever, while the cost-of-living crisis continuing to hit spending power. Access to finance is vital, and with legacy lenders remaining cautious, it is important that key decision-makers are aware of all the finance options available to them, including the services of alternative lenders.

To find out more about A&T Business Associates services, contact Tony Hedger on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.