Unlike big corporations, entrepreneurs and SMEs have inherent difficulties in managing their cash flows as they need to balance between staying afloat and spending more to grow their businesses.
Many SMEs face the same predicament at some point: they have a strong desire to scale their businesses, but the amount of working capital they have would not allow for high levels of growth to be generated. Cutting cost is not an option; vendors are demanding upfront payment; buyers are requesting long credit terms, and the banks are slow and reluctant to offer to lend. In these scenarios, it might be a question of managing your Account Receivables (AR) more effectively.
There are solutions in the market allowing SMEs to leverage their AR such as invoices to obtain quick, short-term financing. Invoice financing, for example, enables an SME to get paid early for invoice payments. Take the example of a fashion accessories seller that supplies to several retailers; they can leverage their invoices with those retailers to gain immediate access to cash without waiting for 30 to 120 days on payments from those retailers. Invoicing financing provides a boost in cash flow for the business, allowing it to maintain operations by paying rent and salaries or even fund new and bigger business opportunities.
Additionally, many SMEs prefer this alternative solution over traditional business loans due to the fast approval process and the fact that for some service providers, no collateral is required at all from the SME.
Corporate Hub has selected Qupital – the leading AR financing platform backed by Alibaba, to offer quick and affordable financing solutions to Corporate Hub’s clients. Eligible SMEs can receive up to 90% of the invoice’s value up to US$2 million, within 24 hours of approval.
If you want to find out more about how to take control of your cash flow, please click here.
Disclaimer: Corporate Hub Limited is not affiliated with Qupital Limited. Users who link from the Corporate Hub Limited web site to Qupital Limited web site should be aware that the information on that site has been compiled and issued by Qupital Limited. Corporate Hub Limited accepts no responsibility for the content of Qupital Limited to which a hypertext link from this site exists and shall not be liable for any loss or damage arising from or related to its use.