Cash flow is of great importance for any business, in addition, it is the indicator of how money moves as part of its operation. This involves a process that can sometimes be complex, and this is where fintech companies come in to lighten the load.
Financial technologies have arrived to make this environment much more efficient, and have boosted the processes for more accurate accounting, as well as quick financing resolutions for SMEs. This has meant that the ecosystem has had an estimated annual growth of 26% during 2022.
The use of tools and services offered by fintech can also help with the issue of cash flow.
The importance of cash flow
Cash flow is a report that contains the income and expenditure of capital from a company. The difference that results from said income and expenses is what is called “net flow” or “balance”. This makes the report one of the most efficient indicators regarding the liquidity of a business.
Thanks to this its importance extends, because with a good calculation of cash flow it is possible:
- Know the amount of raw material that can be purchased.
- Determine fixed and variable costs.
- Being able to anticipate a capital deficit, to start looking for an SME loan in a timely manner.
- Evaluate if it is better to buy on credit or cash.
Establish whether it is good to implement sales systems on credit or only cash, and what the credit limit would be. - Know when you have to pay debts and if you have to refinance them or not.
- Consider the possibility of making investments.
- Create a foundation on which financing for SMEs can be sustained, such as fintech loans or other innovative products of this type.
How can fintechs help?
Fintech companies are there to make financial processes easier and give them practicality while offering innovation to different business tasks of this nature, for example, with cash flow management. And how is this accomplished? With solutions of the following type:
- Accounting software: it is one of the digital tools with which you can have all your finances in a centralized panel, categorize expenses and manage the budget, quickly.
- Alternative forms of payment: implementing credit options, payment with cards and online sales opens the possibility for more customers to come to a business and for the cash flow to be positive.
- Online payment platforms: With an emphasis on e-commerce, this type of financial technology can allow a business to expand its limits, make pre-order options available, and capture more potential customers, in addition to the fact that purchases create a record that it is easier to manage with accounting software like the one mentioned above.
- Alternative SME credit sources: if there is or is expected a negative cash flow, fintech credits and loans, or also cash advances, are the ideal financing alternative to avoid it, since they are much faster to resolve than the alternatives of traditional financing, and do not demand so many requirements.
With Pymes Capital you can obtain an MCA loan for your business and take advantage of the benefits of this type of financing, because to request one, you only have to fill out the form on the website, cover simple requirements such as that your business has been in operation for a minimum of 6 months , be registered with the SAT (Tax Administration Service) and have a POS (Point of Sale Terminal). With that you can have an answer without long waits and paperwork.
Approach Pymes Capital and keep your cash flow positive with an innovative type of financing, easy to request and with a very quick response.