The internet has been one of the most transformative developments the business world has ever experienced. It has changed everything from how a company communicates with its customers to selling digital-only products.
Online technology and platforms can help a business in, well, every conceivable area – big or small. This is the case with liquidity. If you are struggling to manage your cash flow effectively, here’s how you can use online platforms to improve your company’s liquidity.
Find the best invoice factoring service
Invoice factoring is a savvy way for a company to instantly enhance its liquidity. This is where you take your outstanding sales invoices, select a finance provider (factor), and they supply you with a prepayment against these invoices. The prepayment percentage against the invoices typically range from 85% to 100% (minus charges).
The problem is trying to find the best invoice factoring service for your business. This is where a brokerage company like FundInvoice can help. They compare different factoring companies on your behalf, finding the best quotes for your situation. The result: you are able to get the best pricing for your invoices, which further assists with improving your liquidity.
Sell your assets online
Do you have any assets that are unused by your company? If these assets are valuable, you can inject a sizeable amount of cash into your business by selling them off. The problem is that if you have, say, specialist equipment that is only used by a specific industry, trying to sell them locally will be tricky.
With online selling platforms, however, this opens up the possibility of going from a local selling market to a national one. This increases the chances of selling your assets quickly and at a fair price.
Reduce your overheads
It is possible to reduce your overheads by using online platforms and technology. For example, you are able to reduce employee numbers by outsourcing your work to agencies and freelancers. With less employees, you could also reduce how much space you need to rent.
Reducing overheads is one of the most effective ways to preserve liquidity. The less money you are spending, the less money you need to bring in to cover these expenses.
Make use of automation
When it comes to technology your business needs to utilise, it is important you focus on automation and AI technology. Investing in this technology might not be the best for your liquidity in the short run, but it will certainly pay off in the long run.
This is because automation can improve your business in numerous ways. It boosts productivity, enhances efficiency, and can complete various repetitive, high-volume tasks that, when completed by an employee, could lead to human error.
Negotiate your bills
Yes, you can contact utility, Wi-Fi, etc. providers directly or by phone to try and negotiate better prices for your bills. However, online platforms are available that allow you to compare prices across different providers, giving you the information you need to get the best possible prices.