Businesses working with customers that insist on long payment terms can be challenged by a slow and inconsistent cash flow which can make competing with those that can offer longer terms even tougher. Whilst not all such terms have to be agreed to, allowing a more flexible window of payment can offer a competitive advantage against other suppliers. This is where invoice finance can help you win even more business. You can offer terms that compete with others and get paid straight away so that there is no adverse impact on your cash flow. To find out more, please visit: https://lnkd.in/ds3B7MM #TeamOptimum #Cashflow #Factoring #SME #BusinessInsights
Optimum SME Finance Limited’s Post
More Relevant Posts
-
Looking to boost your business's bottom line? Consider early payment discounts 💰 Many suppliers offer a little incentive—like a 2% discount—to encourage quicker invoice payments. For example, paying a €10,000 invoice within 10 days instead of 30 could save you €200. Small savings like this add up, making a big difference over time. Don't miss out on easy savings with a bit of negotiation! Read our full guide on how to optimise cash flow with trade discounts 👇 https://lnkd.in/e3A_6PXr #BusinessSavings #EarlyPaymentDiscounts #SMBs #SmartFinancing
To view or add a comment, sign in
-
CASH FLOW TIPS 💡 | Supplier payments are a significant financial commitment for any trading business. In a challenging market, SMEs need to be smart about maximising their resources. At Fifo, we specialise in this exact approach. This isn’t just about covering costs — it’s about strategically financing their business to drive real growth. 📈 #SupplyChainFinance is one of our payables solutions that allows your clients to pay suppliers more effectively, unlock bulk deals, and secure valuable discounts. 💰 We can show you how other SMEs are using payables to build a solid finance strategy that not only ensures they have the funds to pay but also works to improve their bottom line. ✅ If your clients aren't factoring this into their financing strategy, they could be missing out. Want to see how easy it is to make working capital work for your clients? Get in touch with our team. 📞 #Domore #Winmore #Growmore #SupplyChain #Payables #FinanceStrategy #CAFBA
To view or add a comment, sign in
-
Enhancing Supply Chain Efficiency: The Benefits of Supply Chain Finance for Buyers and Suppliers In today's competitive global market, optimizing the supply chain is crucial for businesses seeking to maintain an edge. SCF has emerged as a strategic tool that provides significant benefits for both buyers and suppliers, enhancing operational efficiency and financial stability. But what if Supply Chain Finance was not implemented? The lack of SCF could lead to strained cash flows, weaker supplier relationships, higher borrowing costs, and missed business opportunities, ultimately compromising the efficiency and resilience of the entire supply chain. For Buyers: 1. Improved Cash Flow Management: SCF allows buyers to extend their payment terms without negatively impacting their suppliers. This enables better cash flow management and the ability to reinvest freed-up capital into other strategic initiatives. Bizzi Financing highlights that effective cash flow management is vital for maintaining a competitive edge. 2. Strengthened Supplier Relationships: By participating in SCF programs, buyers can support their suppliers' financial health, fostering stronger and more reliable relationships. Suppliers gain quicker access to funds, which enhances their liquidity and operational stability. Bizzi Financing emphasizes that robust supplier relationships are key to a resilient supply chain. 3. Enhanced Negotiation Power: Buyers utilizing SCF can often negotiate better terms with suppliers due to the reduced financial pressure on the latter. This can lead to cost savings and more favorable supply agreements. For Suppliers: 1. Faster Access to Cash: Suppliers benefit from early payment options facilitated by SCF, which can significantly improve their cash flow. This access to working capital allows them to manage their operations more effectively and reduce the risk of financial distress. According to Bizzi Financing, improved liquidity is essential for supplier stability. 2. Reduced Borrowing Costs: By leveraging the buyer’s creditworthiness, suppliers can often secure financing at lower interest rates compared to traditional borrowing methods. This reduces their overall cost of capital. Bizzi Financing notes that lower borrowing costs are crucial for supplier growth and sustainability. 3. Increased Business Opportunities: With improved liquidity, suppliers are better positioned to accept larger orders and invest in growth opportunities. This not only stabilizes their business but also enhances their competitive positioning in the market. The implementation of SCF solutions can lead to a more resilient and efficient supply chain. By addressing the financial needs of both buyers and suppliers, SCF fosters a collaborative environment that drives mutual growth and sustainability. For more detailed insights into how Supply Chain Finance benefits buyers and suppliers, you can visit the Bizzi Financing website here. #Supplychainfinance #platform #SCF
To view or add a comment, sign in
-
✅ This explains in detail how invoice #factoring and invoice discounting pricing works together with examples according to the size of your business ➡️ https://buff.ly/3wRtGsg #invoicediscounting #fundinvoice
To view or add a comment, sign in
-
Cash Gap/Cash Conversion Cycle Call it what you like, but do you know your organization’s number? Defined, the Cash Gap is the time between paying for products and expenses and receiving payment for goods sold. Days Inventory plus days receivable less days payable = Cash Gap The cash gap occurs when a company runs out of cash to fund its normal operating cycle. Organizations must find other sources to fund this shortfall, such as short-term borrowing. The cash gap can impact profitability and missed business opportunities. Have you secured adequate short-term financing? Have you included the cost of the cash gap in the pricing model? Have you discussed payment terms with suppliers? Have you analyzed ways to reduce the cash gap? #cashgap #cashflow
To view or add a comment, sign in
-
#BlogUpdate Invoice factoring is on a steady rise and there is about to be a surge in the global market for it as per latest report by The Brainy Insights. Read on to learn more: https://bit.ly/45FnL6R #M1NXT #ImprovedCashFlow #CrossBorderFactoring #InvoiceFactoring #CrossBorderTransactions #Blog
To view or add a comment, sign in
-
💰Why is cash flow so hard to manage? There are two essential reasons: firstly, operational expenses can be heavy. 🦥 Secondly, on the other hand, payments can take way too long in this industry, because invoice terms are often quite lengthy, and some customers are slow to pay. 🚚 Therefore, many freighting companies are often stuck between heavy costs and slow income. That is why it can be so difficult to keep a steady flow of cash. This article will help you take control of your cash flow. 💸 https://rpb.li/p7YInh #CashFlow #FreightFactoring #TruckingCashFlow
To view or add a comment, sign in
-
Keep your business's cash flow healthy with these tips: extend supplier payments, track receivables, trim expenses, and adjust prices as needed. Consistent cash flow is key to thriving. #CashFlow https://bit.ly/3y12bO4
To view or add a comment, sign in
-
Slow-paying customers and tied-up cash present significant challenges for businesses, but receivables finance is emerging as one of the fastest-growing supply chain finance solutions. PrimeRevenue's Receivables Finance agreement empowers organizations to navigate the complexities of delayed payments with ease. By converting outstanding invoices into immediate cash, businesses can mitigate the risk of bad debts, enhance cash flow forecasting, and unlock the liquidity needed to fuel growth. This solution offers a strategic advantage for optimizing cash flow and driving long-term success. #SupplyChain #SupplyChainFinance #SCF #ReceivablesFinance https://lnkd.in/eARDJb5e
Explore Our Solutions
To view or add a comment, sign in
-
Must I factor all my customers? 🤔 The short answer is no! You can choose to factor only those debtors that put pressure on your cash flow, or those where you see the biggest growth potential. While you can select which debtors to factor, you must factor all invoices for each chosen customer to maintain accounting accuracy and consistency. Here’s what invoice factoring can do for you: https://loom.ly/uCSCzA0 #InvoiceFactoring #Factoring #BusinessFinance #CashFlowManagement #MerchantFactors
To view or add a comment, sign in
2,115 followers