4 minute read
Overhead, wages, stock… Expenses can add up fast when you’re running a small business. That's why cash flow is at the top of mind for many small and medium-sized businesses.
Even some of the most successful startups experience problems with cash flow at one time or another. In fact, last year, 6 out of 10 UK small businesses sought additional funding because of insufficient cash flow.
We’re here to help. Our top priority is keeping your business’ hard-earned money in your hands, so you can stay up and running, anytime, anywhere. Choosing the right payment service provider (PSP) can help increase your cash flow — and get you paid faster.
Here, we offer three tips you can use to maximise your cash flow.
What is cash flow?
Cash flow is the money coming and going from your business day to day. If it’s positive, then you’re able to pay your bills, overhead and employees. But if you have negative cash flow, you may have trouble keeping your business operations running smoothly.
You can also experience a temporary negative cash flow, even if you make a hefty net profit at the end of the year. That's why managing cash flow is a good way to ensure you have the funds you need to operate throughout the year.
3 ways to increase cash flow
Here are three ways your small business can improve your cash flow:
1. Next-day settlement
The gap between making a sale and getting paid can sometimes feel like an eternity, especially if it takes three to five business days for a payment to process. For most small businesses, that’s way too long to tie up cash flow.
But with next-day settlement, you get paid the next business day. This helps keep cash flowing, so you can keep your day-to-day operations running smoothly.
2. Fast and flexible funding
Does your small business have a slow season during the winter months? Or unpredictable highs and lows throughout the year? Additional funding can help you run your small business during leaner times.
Through our lending partners, you could get access to business funding in as quickly as 48 hours, in exchange for a percentage of your future earnings. Unlike a traditional business loan, you won't have to make any regular monthly payments. You'll pay only when you make a sale. That means, every time your customers dip or tap their cards, a portion of their sales goes towards paying off your funding.
There are no restrictions on how you use your funds, and no collateral is required, making it a lower risk alternative to traditional loans. And because it’s a sale of future revenues, you won’t need a perfect credit score to qualify.
Our application process is fast and easy. No banks or piles of paperwork. With approval, you’ll receive funding in as little as two working days.
3. Live and social commerce
Live and social commerce blend social interactions with ecommerce transactions to offer your customers a seamless path to purchase. What was once considered a marketing channel has transformed into one of the leading sales channels: Researchers expect 6 billion people to be on social media worldwide by 2027.
Gen Z and millennials, who increasingly engage with brands on social media, have led this trend, which is expected to grow 21% to reach £65.5 billion by 2029. According to Research and Markets, Facebook, Instagram, Twitter and TikTok are the top sales channels in the UK.
Our Pay by Link solution enables you to create, distribute and manage secure payment links instantly across any channel. Your customers can pay on social media, without ever having to click on a separate payment page or leave the platform. This reduces friction, improves your customer experience and maximises conversions.
Pay by Link is also versatile. You can embed payment links into social media, digital ads, QR codes, emails, texts and more. That way, you’ll get paid faster — and increase your cash flow.
Grow your small business
With these three simple payment solutions, you’ll optimise your cash flow and grow your business.
Get in touch today to discover more ways we can help you manage your business. Together, we can explore how to help your business do business — and thrive.
*Subscription services may not be available for all merchants and are dependent on risk and credit assessments.
