Secret to swift cash flow manufacturers can't ignore
Exploring Financing Options
For manufacturers looking to improve cash flow, exploring financing options can provide immediate relief. Invoice financing, for example, allows manufacturers to receive a portion of their outstanding invoices upfront, improving liquidity. This can be a game-changer for businesses experiencing seasonal fluctuations in cash flow. According to the National Association of Credit Management, businesses using invoice financing have reported a 25% increase in cash flow availability3.
Furthermore, equipment leasing can free up capital that would otherwise be tied up in purchasing machinery. Leasing agreements often come with flexible payment terms, making it easier to manage cash flow while still gaining access to the latest technology.