Smart Financing For Your Cash Cycle
As a small business with overhead, it’s a long journey to manage and optimize your cash flow cycle. Many new businesses go through unnecessarily long, tedious processes.
It's important to understand and calculate all financing options so you waste less time (and money). Smart financing decisions can significantly shorten the cash flow cycle, which means your business can focus on growth.
The Months-Long Cash Cycle Stunts Growth For Your Business.
When you close business customers that make large purchase orders, you typically receive the payment after the customer receives the order.
This means your business is taking on months of risk until your customer receives the order and pays the invoice by having to spend your capital or borrowed cash on your suppliers.
Instant and Better Solutions For The Cash Cycle Problem
Many small businesses result in taking out credit to have cash on hand, but that also adds more time to the process. There are better solutions designed to help businesses that have sales outpacing their incoming revenues, like invoice factoring and cash advances for purchase orders (POs).
However, the smartest solution is the latter - purchase order cash advances.
Purchase Order Cash Advance vs Invoice Factoring
PO Cash Advance
Low (as low as 1%)
High (20 - 40%)
Receive Cash Time
In 1 - 2 days
Usually a few weeks
Manages invoices and collections, so your business no longer takes on the risk if the customer defaults.
Doesn’t manage invoice and collections, so the burden is on your business if the customer defaults.
Your business does not need to meet revenue requirements. Approval process takes 1 day to check your customer’s credit worthiness.
Your business must meet revenue requirements, which means the approval process takes longer.
# Of Orders You Can Get Cash For
Multiple at a time
(up to 20 with Akos!)
Usually one at a time until the current is paid off.
When your business receives a huge purchase order, your business is essentially providing a cash advance to the customer and taking on many risks from months of waiting until the payment is received.
Receiving a cash advance from a third party, like Akos, takes away all risks for your business because now the third party takes on the invoice.
Benefits of Purchase Order Cash Advances:
You receive cash almost instantly to put back into growing your business!
The third party can fulfill multiple purchase orders at a time. This means you can scale your customer base and revenue!
If it’s a new customer, you can check a customer’s credit worthiness before you waste time and/or money fulfilling their order.
Now you don’t have to worry about the customer paying you back in months. That’s on the third party.
You strengthen the relationship with your current customers with a faster and more streamlines process.
With the ability to fulfill multiple purchase orders, you can then can scale your customer base!