Lingshui insurance increase, also known as uncollected financiers, is an important part of many floating industries, including the food retail industry. In the field of food circulation (like most other industries), cash flow is a serious problem, which may even cause a company to go bankrupt in extreme cases. In other cases, it can prevent growth and growth, but neither is good.
The following are three reasons why invoices guarantee important services in the food circulation industry.
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It helps to combat rising fuel costs. With the rise of fuel cost, it is almost guaranteed that the rate will be increased frequently. But when should the rate be increased while waiting for these new rates to take effect? You must announce a price increase and wait for a while, but your business cannot wait. This is where the invoice guarantees to fill this gap. With the unpaid invoice, you can continue to pay the fuel fee until the new fee takes effect.
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You can flexibly extend the supplier’s payment time. Sometimes, in order to obtain higher prices, goods in circulation may need to extend the supplier’s payment time. The requirements for postponement are getting higher and higher, but the service cannot be provided without the credit line guaranteed by the invoice. Then, you will not be able to extend the payment time to exchange with higher payments on the back end, so you will lose a lot of revenue.
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New dealers that are still growing are beginning to prove themselves to customers, so they may need to cope with declining profit margins. This makes the matter from inspection to inspection a reality, but it is obviously not a good reality. What should I do if I receive an important contract but have no cash to fulfill it? If you guarantee that the financial advantages of invoices do not help you, you will miss important opportunities to expand and develop your business.
case study
GTA Fruts is a tropical fruit dealer working closely with many large grocery chains. Through the management and financing of GTA’s receivables, the company has been able to grow rapidly, not only growing, but also increasing demand for cash flow, which is growing exponentially.
Food circulation industry financing
Invoices are guaranteed to work in many other industries. Invoice to Cash (ITC) can actually help small businesses grow when they take advantage of these unpaid invoices. The financing plan for low-risk small enterprises is as follows.
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Whether you are providing funds for the following contracts, or the supplier will pay a higher price later, or expand the business, or just pay the invoice, you can cash in immediately when needed:
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Receivables management improves cash flow by making cash flow more effectively managed. Collection is also made easier by taking steps to improve the workflow of the project.
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The transportation management system improves your bottom line by improving your ability to provide services to customers.
Combining these three services, you can see the long-term growth trend. You can use invoices to process the following large orders in cash:
