ist magazine September 2022

Feature

But therecan be pitfalls. Setting up a campaign that goes viral and attracts supporters isn’t guaranteed. Online lending platforms are another attractive form of financing, but while the cash flow may be instantaneous compared In the face of this challenging environment, more business owners are taking a hard look at how to improve cash flow, from tra ditional sources to traditional banks, these online loans come with higher interest rates and big late penalty fees. A cursory look at online lenders reveals APRs at 10% or higher. Traditional bank loans are 3% to 7%. NEWSOLUTIONS FOR FINANCING AND MANAGING CASH FLOW For business owners who find the drawbacks of traditional financing overwhelming or are leery of alternative modes, there is another route to consider when managing cash flow. Increasingly, nonbank companies are integrating bank like services into their tech platforms, to emerging alternatives.

a concept known as embedded finance. These bank-like services could include payments and invoice processing and lending. Advantages of embedded financ ing, like Plaid or Apple Pay, are trans parency, ease of transactions, the capture of relevant customer data, and they offer another revenue stream to businesses. Business owners who are consider ing this as a solution should consider speed and ease of payments, costs and other benefits when deciding between platforms. For example, C2FO, a fintech software company, offers an integrated and secure platform where businesses can accelerate the payment of invoices while offering a discount to customers who pay early. An advantage of this platform is improved cash flow, giving the businesses the power to determine the best time and terms for getting paid. Business owners who partner with C2FO also sidestep the red tape and costs of traditional and alternative financing routes. For another solution, C2FO is now of fering the C2FO CashFlow+TM Card, a new card that expands on C2FO’s estab lished early payment system. The process is as follows: Business owners choose which invoices to accelerate, and early payments are sent to the CashFlow+ Card. Where this differs from typical ear ly pay is that there is no discount given to secure early payment when the card is used. Businesses get paid early and in full and then can use the card, which also offers 1% cash back on purchases. Business owners get rewarded for getting paid now so they can expand, transform and innovate - a different approach from more traditional and alternative means of getting capital. 

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istmagazine.com

September 2022