A Way To Achieve Better Parity And Eliminate Obstacles In Cash Flow

In an age when business moves at a much faster pace than ever before, almost every business outside of the retail space is still struggling with the lag created between the point at which sales are made and the window clients have to make payments for goods and services. Fortunately, there is a way to achieve better parity and eliminate obstacles in cash flow.

Why is there lag between sales and revenue?

Not every business operates with a point-of-sale system. In fact, many businesses across every industry issue invoices instead. Janitorial and maintenance companies, manufacturers, attorneys, distributors, staffing agencies, construction businesses, and more issue invoices with payment windows of 30, 60, or 90 days. The staggered payment window has been a long-standing business, and probably will not change anytime soon, despite technology driving faster sales and payment processing methods. Staggered payment windows create gaps in cash flow. Even a business that makes a lot of sales can experience tightened cash flow because payments for goods and services are staggered by 30 days or longer. (Click Here To Learn More)