The formula for improving cash flow is simple: collect account receivables as fast as possible, and slow down your accounts payable without jeopardizing your relationship with suppliers and partners. Knowing that most businesses, and even individual consumers, operate with the same ideology in mind means the challenge to get paid faster may seem insurmountable. Which is why an industry exists to create products that focus on helping businesses get paid faster. When cash flow slows, the likelihood of survival decreases. In fact, the lack of cash is one of the top reasons that small businesses fail.
1. Converting Invoices into Cash
To improve your cash flow figures, you must collect account receivables faster and hassle free. The time when an invoice is sent and an invoice is paid is critical to the health of your business. Your accounting department should have the ability to email invoices directly to customers for review and immediate credit card or ACH payment. This will streamline the invoice payment processes so you get paid sooner. Taking that a step further, instantly recording that invoice in payments in your ERP or accounting software, such as NetSuite, upon approved payment will streamline the process further.
2. Converting Quotes into Cash
Often a customer is quoted a price on a high dollar volume item, or a customized product, before ordering. Businesses may not keep products in stock due to lower sales volumes or the specialization of the product. For example, a marketing agency that produces sales brochures or an IT company that builds customized network deployments. Once the quote for the product is received, approved, ordered, installed, and invoiced, there can be a significant time gap until the cash is received. Converting quotes to cash flow can be sped up drastically with an automated eQuote system that eliminates the invoice step and converts the quotes to cash flow with fewer processes. Bolt on a security program (such as Solupay's 3D Secure Advanced solution) for orders that seem riskier (high ticket, international) to eliminate chargeback fraud completely.
3. Recurring Revenue
Automating your invoicing with workflows for recurring payments, such as rent, subscriptions, retainers, etc. can vastly eliminate the burden of collections. Having an automated system is 20% faster than using a manual or disconnected system. Creating workflows to automatically send notifications or receive alerts when accounts are past due ensures that no invoices are missed, especially when “Action Item Alerts” let you know when payments are overdue.
Solupay offers a variety of tools to improve cash flow. As a NetSuite payment solution shop, you can take advantage of eQuote-2-Cash and eInvoice-2-Cash integration. Our Cloud Collect product (View the video here) has long provided businesses using a variety of invoicing software with the ability to manage your working capital and your time more effectively, allowing you to focus on future investment decisions to grow your business. And with Solupay, B2B Interchange rates are passed at Level III to further reduce costs on all of our cash flow enhancement solutions saving as much at 0.50% to 1.00% on corporate and purchasing card transactions.