Optimizing working capital, which refers to the amount of money a company has tied up in its day-to-day operations, can be beneficial for small and medium-sized enterprises (SMEs) in several ways.
Here are a few examples:
- Improved cash flow: By carefully managing its working capital, an SME can ensure that it has enough cash on hand to meet its short-term obligations, such as paying suppliers and employees. This can help the company avoid running into cash flow problems, which can be particularly damaging for SMEs that may not have the same access to financing as larger companies.
- Reduced costs: Optimizing working capital can also help SMEs reduce their costs. For example, by improving inventory management and reducing the amount of inventory the company holds, an SME can save money on storage and handling costs. Similarly, by negotiating better payment terms with suppliers, the company can reduce its financing costs.
- Increased competitiveness: By improving its working capital management, an SME can become more agile and responsive to market changes. This can help the company stay competitive in an increasingly challenging business environment.
- Increased profits: Ultimately, the goal of optimizing working capital is to improve the company's bottom line. By reducing costs and improving cash flow, an SME can increase its profits and achieve better financial performance.
In conclusion, optimizing working capital can help SMEs improve their cash flow, reduce costs, increase competitiveness, and boost their profits. This can be particularly important for SMEs that may not have the same financial resources as larger companies.
Qube Account Receivables Finance Added Value
PRI® inside Platform
The fully automated solution for account receivables (or AR) financing by PRI® inside offers:
- Daily (re)purchase of invoices
- Daily portfolio analysis and portfolio review
- Daily notification of purchased receivables
- Daily settlement of credit-notes and uncollectable invoices
- Daily liquidity calculations
- Full ‘track and trace’ solution, all required steps are logged and documented
- Fully automated data-exchange after one-off implementation of data-exchange protocol
- Daily funding and settlement towards participating companies & institutions
- Fully integrated risk, operational and legal framework
Automated interface
Set-up for daily settle-ment routine is defined on automated interface between client’s financial and operational systems and Qube’s PRI® inside. Interface will be implemented and supported by Qube Servicing. After go-live Qube’s clients will have access to all daily settlement reports with automated instructions for payments if required, resulting in a very limited work-load for clients on an ongoing basis.
In-depth experience
PRI® inside has been developed based on the in-depth experience with receivables finance with the objective to have a fully front-to-backend automated receivables finance platform based on historic and actual data which to provide full insight & transparency which will be evidenced by demo on request.