cash flow strategy

David vs. Goliath: How Small Vendors Can Meet Cash Flow Challenges

David vs. GoliathDuring my dozen-plus years in the alternative financing industry, I have seen what I call the “David vs. Goliath” scenario play out so many times that I can usually spot it within the first few minutes of talking to a small business owner about his cash flow challenges. Here’s a common example of how it usually looks:

Back to Basics: Focus on the Fundamentals of Your Business

Here’s one thing about a recession or economic downturn that most people don’t think of: It forces most business owners to focus like a laser on the fundamentals of their business. You know, things like making sure you deliver quality products and great customer service.

How Factoring Services Can Help You Take Advantage of Discounts

In many industries, an important cash flow strategy is to take advantage of what are often referred to as early pay discounts, or “2/10, net-30 discounts.” Such discounts allow companies to subtract 2 percent (and sometimes more) from the invoice amount if it is paid within 10 days instead of the normal 30.

These discounts can really add up, especially for companies with thin profit margins. The challenge for many companies, however, is managing their cash flow system in a way that enables them to take advantage of these discounts on a regular basis.

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