Access to finance for SME’s continues to be the make or break point for company growth and expansion. According to the World Economic Forum Competitiveness Rankings, South Africa, ranked 49 overall, “hosts the continent’s most efficient financial market” placing the country at the 12th position in comparison to her global counterparts. – Source
Being Cash Flow Clever can take your B2B to the next level. Let’s look at 3 Cash Flow Tips for Business to Business Entrepreneurs.
- Thrive with Long Sales CyclesLengthy sales cycles and terms can make businesses feel the end of the month crunch when accounts need to be settled, but there are still monies outstanding from debtors.
“For a rapidly expanding or SME organisation, those terms can be crippling and cash flow becomes an increasingly elusive commodity.”
Getting Cash Flow Clever takes the headache and stress out of the waiting game. Factoring, for example, allows businesses to put money back into their own operations while they wait for the customer payments – and with up to 75% of invoice value upon presentation and the balance of 25% less cost flowing back into the business upon settlement by your customer, your business can thrive instead of just survive until month end.
- Take advantage of upfront payments/early settlement discountsImprove your standing with suppliers by paying for your goods on time, every time. Access to much-needed Cash Flow allows fledgling and established businesses room to negotiate with suppliers on price and deliverables – a positive result for anyone’s bottom line.
“Bulk settlement discounts reduce the overall cost of goods to the business,margins improve and the savings may even cover the costs of the factoring.”
- Value your equityFor some entrepreneurs, Cash Flow comes at the (often high) cost of losing shareholder equity, or other levels of control in their own business. Being Cash Flow Clever helps you protect not only your bottom line but your company stake too without diluting ownership. Partnering with institutions that value what you’ve built is paramount to a successful partnership.
“For some entrepreneurs, Cash Flow comes at the (often high) cost of losing shareholder equity, or other levels of control in their own business. Being Cash Flow Clever helps you protect not only your bottom line but your company stake too without diluting ownership. Partnering with institutions that value what you’ve built is paramount to a successful partnership.”
Access to Cash Flow for growth, expansion, and for building good relations with suppliers can help put your business ahead of the competition. Chat to Merchant Factors to find out how you can get Cash Flow Clever.
