In a recent Lend Academy Podcast, Kathryn Petralia the Co-Founder and President of Kabbage, a US fintech, discussed the correlation between time and funding. She shared that she is often asked if Kabbage customers are desperate for funding, but instead explained their clients are desperate for time. Similarly, our own customers are eager to seize business growth opportunities, so time lost to funding bureaucracy is not an option. Inspired by Kathryn’s comment, I thought about the opportunity costs for SMEs when faced with funding delays.
Great business leaders understand that no company is an island. Strategic partnerships allow you to leverage the finance, technology, markets and branding power of other businesses. Often when a strategic partnership opportunity is presented, it is time sensitive. If you do not have the funding in place to pursue mutually beneficial partnerships, the opportunity may not arise again. Being in control of your cashflow empowers SMEs to build strategic partnerships that can open up new markets and drive more profit.
Having the right skills and drive in your team hugely affects overall success. The ability to build a talented team of specialists not only expands your business offerings, it allows SME leaders to focus on winning new projects and building strategic partnerships. In a competitive talent acquisition market, time is a very important factor. Hiring is expensive and time consuming, so your business must have the cashflow in place to make a winning offer when you do find the right candidate.
Driving awareness of your business is the first step in winning the wallet share of customers. Amplifying your message online and at the right events can help you reach very targeted prospects. The core of marketing is sharing the right message, to the right person, at the right time. When these opportunities align – your business must have the funding to seize them or lose out on potential profits. If you see a lot of traffic to your website from the UK – do you have the working capital in place to target them? An event is announced where the entirety of your target market will attend, can you exhibit? With flexible, fast working capital available, you can make optimal decisions rather than miss out on new customers.
A surge in sales, higher demand for services or an increase in project parameters can be a blessing for a company’s profits. However, without access to the working capital to meet this demand, it can be to the detriment of your business growth. Inflexibility results in unhappy customers and a loss of credibility, let alone the opportunity cost of lost profits. With the ability to access the required working capital without delay, businesses can capitalize on this opportunity rather than suffer damage as a result.
Taking control of your cashflow will ensure your business avoids the opportunity costs of working capital cycle delays. InvoiceFair members can access working capital in as little as 24 hours, empowering them to seize business growth opportunities and think strategically. Don’t allow funding delays to slow down your business – It’s not about how quickly you receive the approval, it’s about how quickly you get the cash!