In this article, we discuss how businesses can use non-traditional unsecured business loans to improve their cashflow management, access funds quickly without collateral, and address various financial needs with greater flexibility. Keep reading to learn more.

How unsecured loans benefit SMEs 

Unsecured business loans, which don’t require collateral, offer accessibility and flexibility for SMEs. Key benefits include a streamlined approval process and quicker access to funds, enabling businesses to address various cashflow needs swiftly. This flexibility allows businesses to allocate funds where needed without the risk, making it an attractive financing option for those looking to maintain operational stability and drive growth.

• Accessibility: Easier and quicker approval process.
• Speed: Faster access to funds.
• Flexibility: Use funds for various cashflow needs.
• No collateral required: Reduced risk for business owners.

Unsecured loans can be accessed through various methods and ensure flexibility and convenience for the borrower. However, the most secure and flexible method is through a virtual credit card facility, which offers enhanced security features and ease of use for managing transactions.

How SME’s can leverage virtual credit cards for better cashflow management

Integrating virtual credit cards with a business loan allows companies to access the cash they need to cover expenses efficiently. These cards are generated instantly for specific payments and offer enhanced security and real-time financial insights, empowering SMEs to effectively manage daily expenses, optimise cashflow, and achieve sustainable growth. 

This modern payment solution not only helps in maintaining a healthy cashflow but also provides cost control by setting spending limits and expiration dates, preventing overspending. Additionally, the enhanced security features of virtual credit cards protect against unauthorised transactions, reducing financial risk and further securing the business’s finances.

Access the funds your business needs today and improve cashflow

Using unsecured business loans delivers a practical approach to improving cashflow management. This delivers the flexibility, speed, and security needed to navigate financial challenges and enable SMEs to maintain a healthy cashflow – ensuring long-term success.

Spenda offers businesses access to an unsecured line of credit, delivered through a virtual credit card, that gives you the cash your business needs to operate efficiently.

• Access up to 25 per cent of your annual turnover 
• Extend trade terms by up to 90 days 
• Simple digital sign up
• Direct integration with your accounting system
• Make secure payments

Get started today – Quick application process 

The post Practical ways to strengthen small business cashflow appeared first on Inside Small Business.

Automate invoice processing to prevent late payments

A recent IBM report named AP the “most automatable” function in any business. Amongst large finance teams, manual AP tasks can take up 44 per cent of their total time. These manual tasks include entering invoice information into the company’s financial systems, making payments, and reconciling transactions. When data is manually entered and processed through these systems, there can be a higher likelihood of errors, which leads to more costly invoice processing. In contrast, implementing an integrated payment system where every invoice and payment stems from a single source of truth facilitates more efficient invoice processing and speeds up cash flow across the supply chain.

Take advantage of flexible payment options

By using AP automation and integrated payment software, businesses can significantly enhance their invoice processing efficiency. This streamlined approach allows for faster handling of supplier invoices, reducing manual involvement. Moreover, businesses can benefit from a variety of flexible payment options that align seamlessly with their cashflow needs.

One such option is early settlement discounts. In exchange for paying an invoice before the due date, a discount is offered. Although the specifics of these discounts may vary across different businesses, consistently taking advantage of even small discounts can accumulate substantial savings over time. Furthermore, this practice fosters stronger relationships with suppliers, potentially leading to additional pricing efficiencies and improved trade terms. 

Extended payment terms can also be a valuable addition and they allow AP teams to strike a balance between meeting financial obligations and maintaining liquidity. Credit cards play a crucial role in this strategy. When paying invoices, AP teams can use physical or virtual credit cards to delay the actual cash outflow by taking advantage of interest-free periods, or access to working capital offered by their provider. These extended terms provide a win-win situation, benefiting both parties involved.

Strengthen cashflow management

AP automation gives your business access to a more accurate data set which is essential for proactive cash flow management. By using a system that automates invoice processing and integrates with your accounting and ERP systems, the data can be visualised in a real-time cash flow analysis, showing decision-makers when payments need to be made. This allows for timely adjustments in either delaying or moving payments forward to best align with the company’s long-term objectives. Finance teams will also have the data to plan for future purchases and investments in growth.

Transform your accounts payable function today

Technology is driving transformation for AP teams. By replacing legacy manual systems and processes with sophisticated software that improves efficiency, reduces data entry errors, and facilitates stronger cash flow across the supply chain, AP teams can transform into a strategic, revenue-generating function that brings value to the business. If you’re looking to make your AP function more efficient and strategic, automating your AP processes is the best place to start.

Spenda’s AP solution features a user-friendly self-guided setup, allowing users to onboard themselves effortlessly and efficiently streamline their payables. Additionally, approved account holders have access to a range of payment methods, including the option to apply for an unsecured credit facility (using virtual credit cards) to pay business expenses. To ensure security, payments are protected by Spenda Wallet, a payment authorisation app that works seamlessly alongside Spenda AP. These two integrated products not only expedite invoice payments but also provide a robust defence against accounts payable fraud.

To set up a Spenda account and get 30 days free*, click HERE

Spenda is an integrated business platform that enables businesses across the supply chain to sell better and get paid faster. We serve as both a software solutions provider and a payment processor and deliver the essential infrastructure to streamline business processes before, during and after the payment event. Our connected platform displaces multiple, disparate systems in favour of one collaborative solution that improves transactional efficiency between businesses. 

This article is for general information purposes only. Consult a qualified financial advisor regarding any changes to or decisions about your business’s finances.

*30 Days Free Terms & Conditions. By signing up, you are entitled to a complimentary 30-day trial of Spenda’s Accounts Payable software. This trial covers only software usage fees and excludes invoice payment processing fees. Following the trial period, you will be given the choice to upgrade to a paid account or to delete your account. Monthly software fees start at $250 per month. Enterprise fees are available on request.

The post <strong>How to transform your accounts payable function into a strategic powerhouse</strong> appeared first on Inside Small Business.

In this article, we provide an overview of the difference between working capital and cashflow and some useful tips to help you better manage them within your business.

What is working capital?

Your working capital is the difference between your business’s current assets and liabilities. The accounting definition of “current” is assets you can convert to cash and liabilities due within 12 months. For most SMEs, assets that will convert into cash quickly are inventory and accounts receivable. Liabilities may include things such as short-term loans.

Having a large amount of or increases in your working capital means that you have adequate assets to pay for your current and future liabilities. A decline in your working capital could make it difficult to cover your liabilities, which may signal the need to make some changes to how you manage your business’s finances.

What is cashflow?

Cashflow is the money that moves in and out of your business. It’s important to note that cashflow doesn’t equate to net profit as many businesses sell using trade credit and use other finance options to supplement their cashflow. To proactively manage your business’s finances, you should always have an accurate short, medium and long term cashflow forecast available. This will help you identify early when finances may be tight so you can take action before it’s a problem.

What’s the difference between working capital and cashflow?

It’s important to understand the difference between working capital and cashflow. Your assets and liabilities drive the amount of working capital in your business. Working capital drives your cashflow. The amount of time it takes to convert your assets into cash is the working capital cycle. The faster and more consistently you can have assets converting to cash, the stronger your cashflow. If you are experiencing tight or negative cashflow due to late payments or stock that isn’t selling, you may be unable to pay your suppliers.

How to improve your cashflow and working capital management

If you’ve experienced a decline in working capital or your business has tight or negative cashflow, there are a range of levers you can use to unlock cash now and into the future. The table below provides an overview of different options you could try to manage each.*

Better manage your working capital

Better manage your cashflow

Manage your working capital and cashflow with ease

Spenda provides business owners with smarter digital tools to get paid faster and strategically manage their working capital and cashflow. Each go hand-in-hand to ensure you have enough money flowing through your business, while having enough capital available to deliver goods and services to your customers. And because our tools seamlessly integrate with accounting and ERP systems, you’ll enjoy the added efficiencies that come with automated and accurate data sharing across your business.

Want to learn more about new innovations that are shaping the future of B2B payments and boosting cashflow management for Australian businesses? Download your free whitepaper copy HERE.

*This article is for general information purposes only. Consult a qualified financial advisor regarding any changes to or decisions about your business’s finances.

About Spenda:

Spenda delivers a fully integrated digital payment and business software solution that enables businesses to transform with fast, error-free digital efficiency. We’re on a mission to fundamentally change the way people do business by delivering digital tools that streamline business processes, and improve efficiency and payment practices, so businesses can trade faster and get paid quicker.  For more information, visit www.spenda.co.

The post The difference between working capital and cashflow and how to better manage them appeared first on Inside Small Business.

The process of dealing with late payments shouldn’t be inefficient and stressful, but without adequate systems and processes in place it can get out of hand quickly. In this article, we outline the best way to put a stop to late business payments and cashflow issues, leaving you with more time to focus on growing your business.

Key problems with Australia’s B2B payments

PwC’s report, Future of payments in Australia, outlines the key expectations businesses have for payments today and into the future. Businesses today want to address the complexity of dealing with and paying their suppliers while having better visibility over their cash flow. And, in the future, presumably once vendor and cashflow visibility issues are addressed, businesses want to integrate their payment processing systems with the rest of their business. Further down the track, a business can use the data from these integrated systems to make stronger commercial decisions.

By setting up proper systems and processes now, a business can not only address its immediate cashflow problems, but can enjoy the benefits of fully integrated payments as well.

Set up the right systems to stop late payments in the first place

Many businesses pay their invoices late because they’re waiting on late payments to hit their bank accounts, too. You can address this problem by setting up systems that provide your customers with a range of payment options, including integration with their accounting system, giving them better visibility over their cashflow. Think about the systems you have in place to collaborate with your team or customers on your work. It makes sense to have tools that allow you to securely collaborate on payments too. Spenda helps businesses address these problems to enable stronger cashflow and the ability to be more strategic.

Give your customers payment options and you’ll both enjoy stronger cashflow

When you’re shopping as a B2C consumer, one of the things you may have enjoyed is the range of payment options available. With credit card payments and buy now, pay later (BNPL) services, you can effectively provide yourself with an extra 30 to 60 days to pay for your goods and services. Solutions like Spenda, deliver flexible payment features that provide businesses with a range of payment options and automated ledger-to-ledger collaboration so both buyer and seller are always working from the same source of information. And allowing businesses to pay via credit card or with BNPL options provides extended credit terms too (standard payment terms plus a credit card’s interest-free period or total time to pay all BNPL instalments).

Businesses should be able to access the same convenience and control over their cashflow that B2C payment platforms provide. Spenda’s payment feature provides several payment options, including:

• Credit card payments: Securely pay one or multiple invoices in a single transaction with immediate settlement available for a small fee. All credit card transactions are tokenised, which provides extra security as your customer never needs to share their credit card details.
• Bank transfers: Payment via bank transfer with the ability to pay one or a selection of invoices in one transaction. Ledger-to-ledger integration means you’ll both know exactly which invoices have been paid and what’s outstanding.
• BNPL: With our BNPL feature, your customers will have access to a third-party finance provider. You’ll get paid straight away while they’ll be able to pay their invoice over a set number of instalments.
• Workflow payments: No one likes having to return to their desk at the end of the day to send a bunch of invoices. Spenda’s workflow payments concept allows businesses to get paid as soon as goods and services are delivered, or a pre-set event is triggered.

By offering the above payment options in the first place, your customers can align their payments with their cash flow. This addresses one of the key causes of late payments in Australia while having positive impacts on cash flow across the supply chain.

Align cashflows across supply chains to better your business

When customers can schedule their payments from the start of the transaction, they’ll be able to make sure they have adequate funds to pay, while you know exactly when to expect payment. This provides both parties with more control and visibility over cashflow. If you’re getting paid faster, you won’t have to delay any of your payments, and this trend will continue with your suppliers and their customers, too.

Set up automated systems to deal with late payments quickly

Even with a range of payment options available in your business, we understand that some accounts may still pay late, so it’s important to implement smart digital tools to help address this problem, too. With Spenda, you can simply invite your customer to the platform, remind them their payment is overdue and they’ll be able to choose from a range of options to settle their account in full. The scheduled payments will be automatically deducted from your customer’s credit card or bank account, and you’ll both see exactly when these transactions will occur.

It’s important to note that, while you may feel stressed or worried about damaging the relationship with your customer by chasing up late payments, Spenda’s tools help you set up the systems and processes your business needs to settle any current late payments and significantly reduce, maybe eliminate, late payments in your business altogether.

Stop late payments in their tracks and boost your cashflow with Spenda

Chasing late payments is a hassle for business owners and finance professionals, but you can address the problem at its root with the right systems and processes. Spenda helps businesses make late payments a thing of the past while strengthening cash flow across the supply chain. Your customers will enjoy better payment flexibility, while you’ll enjoy getting paid on time, resulting in better visibility of the money flowing through your business.

Learn more about how Spenda’s innovative payment solution is shaping the future of B2B payments and boosting cashflow management for Australian businesses.

Want to learn more about new innovations that are shaping the future of B2B payments and boosting cashflow management for Australian businesses? Download your free whitepaper copy HERE.

*This article is for general information purposes only. Consult a qualified financial advisor regarding any changes to or decisions about your business’s finances.

About Spenda:

Spenda delivers a fully integrated digital payment and business software solution that enables businesses to transform with fast, error-free digital efficiency. We’re on a mission to fundamentally change the way people do business by delivering digital tools that streamline business processes, and improve efficiency and payment practices, so businesses can trade faster and get paid quicker.  For more information, visit www.spenda.co.

The post How to deal with late payments without the fuss appeared first on Inside Small Business.