SupplySide’s Post

Do you need help determining if a business line of credit is the right decision for your company? This article by ✔ Gene Naftulyev explores what business lines of credit are and how to use them effectively. Lines of credit can be a valuable tool for short-term business needs, but it is essential to understand how they work to get the most out of them. 

If your business is growing and profits are increasing, you might expect your cash flow to improve. However, in reality, growth often leads to cash flow problems because it relies heavily on available cash. Why does this happen? 👉 Sales require working capital: Each sale made must be funded by available cash. 👉 Stock needs: To grow, a business must carry inventory, including materials and finished products. 👉 Customer credit: Customers often receive credit terms, meaning they don't always pay for new purchases immediately. Understanding these factors can help you better manage your cash flow during periods of growth. #BusinessGrowth #CashFlowManagement #EntrepreneurTips

Many small businesses are caught in a tough spot, forced to accept unfavorable payment terms due to limited negotiation power. But are you aware of the existential threat this poses to businesses as they grow? In this blog post we use an illustrative example to show how two identical businesses can end up in vastly different financial situations, all because of the payment terms they navigate with suppliers and customers. This challenge isn't just theoretical. Even industry giants like Nike have had to carefully manage this precarious balance. It's a critical wake-up call for businesses to reevaluate the impact of payment terms on both cash flow and growth potential. At aqeel, we're at the forefront of developing solutions that enable more effective cash flow management. Our tools empower you to set the ideal payment terms for your business and your customers, ensuring your business not only survives but thrives. Dive into our latest blog post to learn how you can protect and sustainably grow your business with our innovative cash flow management solutions. #CashFlowManagement #SupplyChainFinance #CashConversionCycle

Management of cash conversion cycles... extremely underrated topic. We wrote about this challenge in our brief blog post below. I think this thread nailed it: https://lnkd.in/deePvFrm

A Purchasing Card can be a great option for commercial clients to help optimize cash flow to their business. At First Horizon we have multiple solutions to fit any size business need. Reach out to me today to explore how we can help make your business a success.

Good morning to all What is trading account? Let’s me explain Trading account is used to determine the gross profit and gross loss of a business which results from trading activities. Trading activities are mostly related to the buying and selling activities involved in a business. Trading account is useful for businesses that are dealing in the trading business. This account helps them to   easily determined is an indicator of the business in buying and selling. The formula for calculating gross profit is as follows: Gross profit = net sales – cost of goods sold Where Net sales = Gross sale of the business minus sales returns, discounts and allowances. The trading account considers only the direct expenses and direct revenues while calculating gross profit. This account is mainly prepared to understand the profit earned by the business on the purchase of goods. Items that are seen in the debit side include purchase, opening stock and direct expenses while credit side includes closing stock and sales.

Improving cash flow isnt just about increasing sales; it involves smart management of how money flows in and out of your business. Strategies can include negotiating better terms with suppliers, offering discounts for early payments, and optimizing inventory levels. What steps are you taking to enhance the cash flow of your business? #TaxCredits #CashFlow #Profitability

6 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬 𝐭𝐨 𝐞𝐧𝐡𝐚𝐧𝐜𝐞 𝐲𝐨𝐮𝐫 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬'𝐬 𝐜𝐚𝐬𝐡 𝐟𝐥𝐨𝐰 𝐛𝐞𝐟𝐨𝐫𝐞 𝐬𝐞𝐥𝐥𝐢𝐧𝐠: 𝐓𝐢𝐠𝐡𝐭𝐞𝐧 𝐜𝐫𝐞𝐝𝐢𝐭 𝐭𝐞𝐫𝐦𝐬. Reduces payment delays. • Shorten payment deadlines • Tighten credit policies • Follow up quickly 𝘗𝘳𝘰𝘮𝘱𝘵 𝘱𝘢𝘺𝘮𝘦𝘯𝘵𝘴 𝘪𝘮𝘱𝘳𝘰𝘷𝘦 𝘭𝘪𝘲𝘶𝘪𝘥𝘪𝘵𝘺. 𝐀𝐜𝐜𝐞𝐥𝐞𝐫𝐚𝐭𝐞 𝐢𝐧𝐯𝐨𝐢𝐜𝐢𝐧𝐠. Speeds up revenue entry. • Invoice immediately • Use electronic invoicing • Offer multiple payment options 𝘍𝘢𝘴𝘵𝘦𝘳 𝘪𝘯𝘷𝘰𝘪𝘤𝘪𝘯𝘨 𝘭𝘦𝘢𝘥𝘴 𝘵𝘰 𝘧𝘢𝘴𝘵𝘦𝘳 𝘱𝘢𝘺𝘮𝘦𝘯𝘵𝘴. 𝐂𝐮𝐭 𝐮𝐧𝐧𝐞𝐜𝐞𝐬𝐬𝐚𝐫𝐲 𝐞𝐱𝐩𝐞𝐧𝐬𝐞𝐬. Enhances financial health. • Review regular expenses • Eliminate wasteful spending • Negotiate with suppliers 𝘙𝘦𝘥𝘶𝘤𝘪𝘯𝘨 𝘤𝘰𝘴𝘵𝘴 𝘪𝘯𝘤𝘳𝘦𝘢𝘴𝘦𝘴 𝘯𝘦𝘵 𝘤𝘢𝘴𝘩 𝘧𝘭𝘰𝘸. 𝐋𝐞𝐚𝐬𝐞, 𝐝𝐨𝐧'𝐭 𝐛𝐮𝐲. Preserves cash reserves. • Lease equipment • Opt for renting spaces • Avoid heavy upfront costs 𝘓𝘦𝘢𝘴𝘪𝘯𝘨 𝘳𝘦𝘥𝘶𝘤𝘦𝘴 𝘮𝘢𝘫𝘰𝘳 𝘤𝘢𝘴𝘩 𝘰𝘶𝘵𝘧𝘭𝘰𝘸𝘴. 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞 𝐬𝐚𝐥𝐞𝐬 𝐩𝐫𝐨𝐦𝐨𝐭𝐢𝐨𝐧𝐬. Boosts immediate cash flow. • Offer limited-time discounts • Create bundle deals • Promote heavily to existing customers 𝘚𝘩𝘰𝘳𝘵-𝘵𝘦𝘳𝘮 𝘨𝘢𝘪𝘯𝘴 𝘤𝘢𝘯 𝘴𝘵𝘢𝘣𝘪𝘭𝘪𝘻𝘦 𝘧𝘪𝘯𝘢𝘯𝘤𝘦𝘴. 𝐑𝐞𝐯𝐢𝐬𝐞 𝐢𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 𝐦𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭. Reduces holding costs. • Analyze inventory turnover • Adjust stock levels • Liquidate old stock 𝘌𝘧𝘧𝘪𝘤𝘪𝘦𝘯𝘵 𝘪𝘯𝘷𝘦𝘯𝘵𝘰𝘳𝘺 𝘮𝘰𝘷𝘦𝘴 𝘤𝘢𝘴𝘩, 𝘯𝘰𝘵 𝘫𝘶𝘴𝘵 𝘱𝘳𝘰𝘥𝘶𝘤𝘵𝘴. Implementing these strategies provides better control of your cash flow, making your business more attractive and financially stable for potential buyers. Which of these will you try? #TheCapitalistsCorner

Setting the “right” price depends on countless factors, including the type of good or service, the customer base, and what the competition is doing. These seven steps could help a business achieve the right pricing strategy for its needs. https://ow.ly/u4wq50SHLVe