How to Reduce Your Company’s DSO As most corporate decision makers will tell you, one of the most difficult aspects of running a business of any size is getting paid in a timely manner. At the same time, getting customers to make their payments on time is crucial to improving cash flow and keeping your company afloat. For that reason, most companies invest in a robust accounts receivable department to track customer payments and optimize cash inflow. In order to…
How does business credit work? Most of us are aware of the importance of good personal credit and regularly take steps to improve and protect our score. Your business credit is just as important and plays a critical role in the long term success of your business. Unlike personal credit, business credit is not attached to your social security number; it’s linked to a business’ Employer Identification Number (EIN) or Tax Identification Number (TIN). A business credit score is an…
How to Close the Gap on Your DSO How effectively do you monitor your accounts receivable department? Every company gets paid on a unique timeline that’s largely dependent on its business model. To evaluate the efficacy of your company’s payment processing, look at your company’s DSO. DSO measures the average amount of time it takes for your company to collect payment on its sales. The lower the DSO, the faster your company profits from its sales. Your company’s DSO is…
Increasing Average Order Value (AOV) If you’re in sales, you’re used to working under pressure. In fact, you thrive on it. On a day-to-day basis your company depends on your team to acquire new customers, grow repeat business, and deliver on several critical company KPIs. However, if Average Order Value or “AOV” is one of the KPIs you’re responsible for, your company may need to think more broadly. AOV, along with # of new customers and new billed business, is…
2 Reasons to Ditch the Invoice Factoring Calculator Factoring is a popular financing solution for companies with slow cash conversion cycles. The longer it takes companies to convert their inventory into profits, the more cash gets tied up in their business cycle. More often than not these companies offer trade credit or lenient payment terms, so they experience significant payment delays. They resort to factoring because it’s convenient. Selling receivables is fast cash and takes the burden of collections off…
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