Business Growth Starts With Managing Receivables

For a business to thrive and grow, making lots of sales is only part of the equation. Managing receivables is the other, because if a business makes a ton of sales, but revenue is coming in at a glacial pace, then there is no time to accrue growth capital. Fortunately, managing receivables does not have to be time consuming, and the end results are a healthy cash flow and working capital for business growth.

Leveraging Open Invoices For Business Growth

One of the biggest hurdles in business growth is maintaining a healthy cash flow. If customers are going to wait until the end of an aging period before remitting payments on open invoices, then any incoming capital will go directly to meeting immediate financial obligations. This scenario does not allow for business growth. Some entrepreneurs are starting to shift the responsibility of getting customer payments from in-house accounting to factoring services. Factoring services is a method of selling open invoices for immediate (withing 24 hours) working capital. This expedites the payment process, streamlines accounting, and provides fast revenue for business growth.

Taking On Larger Customers

This may seem counter-intuitive. How could taking on larger customers possibly help in managing receivables? Smaller companies are using purchase order financing to not only take on larger customer orders, but to simplify payments and increase the rate of business growth. Purchase order financing is a debt-free advance in capital for large customer orders, to cover the cost of production. Once the order is completed, the customer pays the full balance before receiving any goods. That payment takes care of the capital advance and the remainder goes right to the business. This is how companies carve out a larger market share when they are first starting out, and amass capital for business growth in the process.

Consumer Financing For Managing Receivables

Some companies do not achieve business growth because sales are slow, or because customers are lax in their payments. Consumer financing changes this, because it spreads out the total cost over manageable monthly installations. Consumer financing makes buying big ticket items much more “budget friendly.” Also, because payments are scheduled on a monthly basis, customers can pay online, over the phone, or have automatic withdrawals made on their accounts. This provides a method of managing receivables in check while ensuring business growth by stimulating sales.

Learn More About Out Business Growth Solutions

To get more information about purchase order financing, factoring services, or consumer financing solutions, call Vantage Commercial Capital at 913-543-4242. We will work with you directly to come up with strategies to manage receivables while providing the capital you need for business growth.