Cash Flow Solutions: Overcoming Obstacles in a Fast-Paced Marketplace
Today’s marketplace is moving much faster pace than just a few years ago. Individual pieces in large shipments are tracked via blockchain technology, transmitting everything from condition to location to people monitoring from the origin to the destination. Sales are conducted via smartphone between companies all over the world in the blink of an eye. Yet despite the fast-paced global economy, cash flow has taken a back seat to old-fashioned business practices. Fortunately, there are cash flow solutions to help growing businesses keep pace with the rate of sales and financial decisions.
Staggered Payment Schedules
Like it or not staggered payment schedules are going to be a standard practice for years to come. Staggered payment schedules give customers flexibility when they receive invoices. For accounts receivable, staggered payments can place a big strain on cash flow, especially for growing businesses. When cash flow is tight, businesses often resort to bank loans and other debt-based options as a temporary solution. Since staggered payments are a standard practice, there is a strong likelihood that the same cash flow issues will arise in the near future and relying on loans will further compound those problems.
Faster Cash Flow Solutions
To sidestep the issues caused by staggered invoice schedules as well as the liabilities that come with debt-based loans, businesses are using accounts receivable financing. Accounts receivable financing, or factoring, allows businesses to speed up revenue cycles by converting unpaid invoices to cash within a single business day. Factoring gives businesses access to capital immediately instead of waiting a minimum of 30 days while invoices age out on staggered payment schedules. In addition to rapid turnaround and improved cash flow, accounts receivable financing is debt-free so businesses can focus on growth and move away from traditional loans to fund operations.
Supercharge Your Revenue Cycles
There is no reason to create unnecessary strains on cash flow due to outmoded business practices. Give your business the advantage it needs to gain momentum in today’s economy. Wise Commercial Capital provides a wide range of growth and working capital solutions including accounts receivable financing. If your business issues invoices with payment schedules of 30 days or longer, and you would rather get immediate access to revenue instead of waiting on unsettled accounts, contact our team today.