Business-to-consumer (B2C) firms normally get paid at the point of sale, but when it comes to business-to-business (B2B) transactions, the process is more complicated.
Once the work is complete or the goods have been delivered, B2B firms send an invoice which includes payment terms. The buyer usually has between 30 and 90 days to pay, although the time frame can be even longer.
This puts B2B suppliers in an uncomfortable position. While they are waiting for the cash, the bills mount up. And studies show that the smaller the business, the harder they get hit.
57% of small businesses struggle with cash flow. It makes routine things like paying salaries, meeting tax deadlines, and covering overheads stressful. Many will be forced to turn down lucrative projects because of insufficient resources while some will end up taking out expensive debt as they wait to be paid. Poor cash flow is the number one cause of business failures around the world.
This guide has been created for those B2B firms that find themselves anxiously waiting for payments to come through. This guide is not financial advice, but we hope it will be helpful.
Depending on the type of business you run, there are different options available to help you boost your cash flow, grow your company and take back control.
Download our ultimate guide to learn about the B2B financing options available to you.
Please note that, while this guide is intended to be helpful, it is not financial advice.