If you sell wholesale products to businesses then you are at the will of your customer’s seasonal cash flow.
When times are good business customers can pay in full, but when times are slow your business customers may request to make partial payments. Read on to learn why accounts receivable systems are dated and about new vendor financing solutions called business customer financing.
Accounts Receivable Systems are Dead
When your wholesale business allows your business to pay on credit you must maintain up-to-date accounts receivable systems. The problem with managing accounts receivable is that you must use accounting software like Quickbooks to ensure payments and balances are accurate and factored into your monthly income statement. Your business is already complicated enough. There’s no need to add further complexities to your accounting system. A secondary problem with an accounts receivable system is the risk. There is no guarantee that payments will be made. This is especially true because after 90 days it becomes very difficult to collect on accounts. Writing off unpaid accounts can create losses for your business and decrease your income.
Vendor Financing Solution
A better alternative to an accounts receivable system is business customer financing. Business customer financing allows businesses to make payments for inventory purchases without any tracking or risks for you. Financing Your Way approves business owners based on credit. Business owners can apply for $5,000 – $50,000 worth of working capital for inventory. After the loan is funded, your business will receive payment in full within 2 – 3 business days and there is no complex tracking involved. Business customer financing is the best option for wholesalers who want to increase income by offering flexible payment arrangements, all while reducing the amount of risk involved.