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Fresho - Post header - How to avoid the cash flow killer

How to avoid the cash flow killer

Cash flow problems are a common concern for businesses. Spiralling debtor days and awkward “please pay us” conversations limit your potential to plan for the future, or worse, put you out of business.

With avenues like automatic payments, third-party payment, and finance options, cards have always been spotlighted as an opportunity to tackle inconsistent cash flow.  

After the pandemic, contactless payments became more than a convenience but a matter of public health leading businesses to opt to ditch paper payments and go completely digital. In this uncertain environment, the benefits of cards are unmatched. If you are a Fresho wholesaler and you’re not using or accepting card payments, it’s time to make the switch.

But how do you know offering card payments is the ideal solution for your business?

Because Fresho is right in your corner. We understand that it’s daunting to change your core business processes, but given our software already handles your pricing, products and availability, we are more than capable of streamlining your cash flow and helping you grow your business.

Food wholesale suppliers are at the forefront of Fresho’s software development, where we are constantly keeping pace with the evolution of payment technology to make it secure and seamless.

Here’s how.

1. From cash to cards.

The rise of e-commerce and fintech developments make card payments seamless. Long gone are the days when society was economically driven by cash. With a ‘tap’ or a ‘swipe’, purchases are smooth like butter and we are seeing the world gravitate towards this simplicity. However, a user’s choice doesn’t just come down to the unfussiness of a card. A recent survey conducted by Deloitte shows 85% of respondents achieved benefits from paying and accepting payment by card and for B2B specifically, credit card transactions are better, faster and cheaper than cash.

Let’s drill down into this a bit more.

The benefits:

They're better.​
  • Increase sales. Studies suggest that customers using credit cards are prepared to spend over 100% more than they would be using cash.
  • Improve customer relationships. Instead of nagging customers to pay their invoices on time, create a seamless and positive experience for both parties.
  • Improve reconciliation. Electronic payment mechanisms are developing rapidly with automated reconciliation embedded in digital payments.
They're faster.

A card reduces processing times, approval, and payment executions.

  • They can control their receivables more effectively, as payments are authorised in real-time and usually settled within two business days. 
And they're cheaper. ​

Less administration associated with card payments means fewer labor expenses.

In the next two years, cash is predicted to occupy only 2% of all payments and if these predictions are correct, Australia could be virtually cashless by 2026. If your business is still dealing with cash, you need to adapt. Cash is no longer king and it’s likely your customers may switch to a supplier that offers credit card payments.

"It's a really helpful feature. A big time waster for us was chasing payments from people and people being slack paying their bills and paying late."

General Manager, Meatsmith Butcher

Enabling cards with Fresho

Fortunately for you,  Fresho makes managing card payments easy. 

Users can go into their customer payment settings and simply tick the ‘enable card payments’ checkbox.

Want to make the switch?

Need help?

2. From manual to automated.

The problem of late payments has plagued food wholesalers for too long, and gradually it has developed into a systematic problem. Research shows that 90% of businesses will close their doors due to poor cash flow.

Don't want your business to be a part of this statistic?

Automate your customer’s payments. 

It’s a simple one-time setup that’s safe and secure. As well as alleviating cash flow problems, you can

  • Get time back in your day. Chasing payments shouldn’t be a full time job. Automated payments will save you time chasing payments, and reduce the admin that comes with it.
  • Make life easier for customers. Your customers don’t have to worry about paying invoices because it happens automatically, which gets that one thing off their plate. 

What's wrong with the way food wholesaler's ordinarily conduct payments?

The current processes are not only outdated but put your business at risk.

If you liaise with your customers on a trade credit basis, which most food wholesalers do, you are at the mercy of irregular cash flow more than other businesses. Xero has brought to light the impact of late payments on both businesses and the economy.

Xero Report Findings

Why you should switch on automatic payments

Cost savings: printing supplies, stamps, paper and employee labour combined to create a large expense for your business. You can avoid all these expenses by making payments automated.

Faster payment processing: When B2B payments are made manually, it could be weeks before invoices on desks or sitting in inboxes are addressed, causing significant delays in payment. With payment automation, you can cut through those delays by standardising the approval process.

Increase cash flow: Manual payments impose unnecessary delays, risks and frustrations. By automating payments, not only do you ensure payments are received when they are due, but also, save time chasing up payments from customers. Your cash will come in when expected and you’ll have money to spend when needed. 

Increase productivity:  With B2B automated payments, you eliminate the manual steps, leaving employees more time in their day to focus on productive tasks. 

Fraud prevention: Tracking cheques on your own accord makes it easy to miss red flags. By making payments automated, you mitigate the chances of fraud by flagging invalid invoices, providing visibility and catching missing or incorrect data. 

Stronger relationships: creating a reputation where your business pays bills on time sets you apart from your competitors.

"It allows us to not have to worry about transacting and chasing up customers."

General Manager, Fruitique Wholesale

3. From late to upfront.​

Imagine where you could take your business if you received 100% payment for your customer invoices within days.

Ask Fresho about their solution to help you forget about chasing payments and worrying about accumulating debt, and instead increase cash flow and run your business with confidence and less stress! 

Unless you make digital payments a part of your business strategy, the cash flow killer will always loom. Those of you who are hungry for success will need to adjust your viewpoints and processes over time, including considering credit cards, automatic payments and upfront financing.

Chat with Fresho and we can find the right solutions for your cash flow problems. 

We're here to help!

Matilda Lloyd
Matilda Lloyd
With a Bachelor of Arts Degree and qualifications in Journalism, Matilda is a content specialist working at Fresho. Her diverse range of content covers trending topics, how-to guides, knowledge articles and adhoc fun ideas catered towards the food wholesale industry and technology.
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