Increase profit margins
- Paying suppliers on time and in full puts your business in a better position to negotiate terms and/or discounts
- Reduction in time and effort to follow up unpaid invoices
- No need to offer discounts to customers to encourage early payment
Most small business does not have a large accounting division to handle the bookkeeping let alone follow up overdue invoices. The task usually goes to someone who should be getting on with their real work, causing a significant drain on that resource. The ability to negotiate discounts on inventory is invaluable and the regular cash flow enables purchasing larger amounts of inventory to increase output and profit. With more profit comes more possibilities.