The cashflow cycle is a gap between the cash collected from your receivables and payments to be made to your payables. The shorter this cycle, the smoother your business operations because admit it or not, cash flow shows the real picture of a company. Profit only projects your cost and revenue in paper whereas your cashflow statement says how much money your business has at that position of time.

With the new year 2020, set your priorities right!

We have listed some key ways to improve your cashflow cycle. Use these approaches to keep your business rolling, hard and fast!

1. Credit Check – To Vet Your Debtors

A credit check is a MUST to know the past records of your potential clients before engaging with them. Your client’s previous transactions with other parties will give you an idea of whether you can rely on him to make timely payments. So, avoid dealing with people with questionable credit. If you have a doubt but still want to proceed with a client with low credit, make sure to set up the payment with a high-interest rate.

2. Fast Track Your Business Flow – To Move  Up Your Payment Cycle

Use efficient tools like Just-in-time (JIT) to manage your inventories so that you can speed up your business flow especially your supply and delivery process. The faster the client receives your good, the faster he will settle your payment.

3. Send Invoices Out Immediately – Early Invoice Means Early Payment

If your payment duration is long, one of the reasons can be your invoices. Send your invoices as soon as you deliver your product or services so that clients can pay you. Make sure you have an easy process to prepare invoices that are easy to fill out and include all necessary details. That way, your invoice can be processed faster, and you will see your money coming back sooner than later.

4. Automated System – Fast Track Your Accounts Receivable System

Use simple software to keep track of your accounts receivable payment timeline since manual tracking of your debtor’s aging schedule can be a little tedious. With an automated system in force, you can send frequent reminders to your debtors when the payment due dates are close and follow up with text and calls if they miss out on the deadline. Moreover, you can align your invoice date with your customer’s payment cycle to smooth the payment flow. 

5. Offer Incentives to Debtors – For Faster Collection

Usually, when you sell your products on credit, you receive the money for your goods after 30-90 days period. This duration can even go as high as 120 days putting a significant gap in your cashflow cycle. Therefore, offer discounts on early settlements to encourage your debtors to pay faster. This will allow you to expedite your cash flow cycle and reduce the chances of delayed receivables collection.

6. Invoice Factoring – Turn Your Invoices Into Quick Cash

Don’t waste your money tied up to debtors. Consider invoice factoring companies to sell your invoices and get instant cash in exchange for a small fee. CapitalBay is one such company that offers as high as 80% upfront cash on your invoices. The remaining 20% value of your invoice is paid once your debtor makes the payment to CapitalBay.

This is an excellent way to instantly collect the money from your debtors to utilize it in other projects. More importantly, it reduces your risk of bad debts and saves valuable time spent on chasing debtors to collect money on time.

7. Regulate Your Accounts Payable – To Get Better Deals From Your Suppliers

Train your accounts payable team to manage your liabilities efficiently. Also, take advantage of the early payment discounts and always make your payments on time. This will increase your goodwill and you can negotiate better rates with your suppliers based on your excellent credit history.

8. Electronic Payments – To Push Back Your Cash Outflow

Electronic payments simply refer to online banking transactions. When you make online payments, your creditors will receive the payments instantly compared to issuing a cheque. So, you can wait until the last minute to pay your creditors. This will allow you more time to keep the cash in your company and hold off the cash outflow as long as possible. As a result, you can buy more time to shorten your cashflow cycle.

9. Find Investing Alternatives – To Finance Your Cash Outflows

It is common to keep a cash reserve for rainy days and sometimes you may have some extra cash sitting around in your bank account. Rather than just leaving the money in the bank account with 0 yields, make some short-term investment to make money. For example, you can put the extra cash in a high-yield savings accounts or invest the cash via P2P platforms to get good returns. 

In fact, CapitalBay is opening up its P2P platform in the first quarter of 2020, where you can enjoy more than 10% projected return per year on your investment. This type of investing will not only give you better returns than a savings account, but it will give you an opportunity to diversify your investment portfolio. Moreover, you can use these returns to finance your business operations more efficiently.

10. Revisit Your Inventory – To Prioritize Your Sales

Have a close look at your inventory. You will always find products with low demand that ties up a lot of your cashflow. Besides, it adds up your storage cost causing a cashflow deficit. Instead of waiting for the golden day when the sale of these items will miraculously rise, get rid of these slow-paced products by offering them at discount. This will stack more cash inflow to your cashflow cycle.

11. Leasing Fixed Assets – To Reduce Your Overheads

Prioritize your expenses! Buying fixed assets require spending a large sum of money. You may not always have such a large influx of cash inflow to invest in your fixed assets. The better alternative is to reduce your cost by leasing some of your fixed assets. This will allow you to use fixed assets by paying only a small payment each month, freeing up the rest of the cash to invest in other more important parts of your business.

12. Make Cashflow Cycle An Inclusive Initiative

Don’t burden only your finance team to manage your cashflow. Include the sales and marketing team to give them an idea of the company cash. This will enable all departments to prioritize cash flow by choosing trustworthy customers and manage them accordingly to receive money on time.

The cashflow cycle is a Key Performance Indicator (KPI) that reflects on how long it takes for a Ringgit spent in your business to return into your pocket. You should aim to have your money in the bank before you spend it, in other words, generating a negative cashflow cycle, preferably -6 days. A company becomes much more attractive to investors and other stakeholders when you have a robust cashflow cycle. In many ways, people who put up money in your business will rely more on your cashflow than your profit statement. So, improve your cashflow cycle in 2020 to shape up a smooth-running business by implementing these valuable key points.

Kickstart with the Best Financing Solution!

CapitalBay can help you with the best financing solution if you need assistance to improve your Cashflow Cycle. We offer invoice financing which has the following attributes:

• Easier
• Faster
• Flexible
• Cost-Effective
• Collateral-Free

Check out for more info here and get a free quote for your business financing now.

（吉隆坡17日讯） CapitalBay是一家屡获赞誉的大马多银行供应链融资平台，如今已授大马证劵监督委员会（SC,简称证监会）批准运营P2P 平台，于今日证劵会主办的盛会领取登记许可证。出席者包括大马证劵监督委员会主席拿督赛再益阿峇尔和财政部长林冠英。   CapitalBay创立于2016年，已和多家东盟国家的银行合作，为客户提供电子供应链融资服务。有了这P2P的营业批准，CapitalBay开启了新的管道。零售投资者(Retail investor) 可通过此平台步随银行及专业投资机构等的步伐，参与高素质的融资交易， 这与我国首相敦马哈迪最近宣布的 “共享繁荣” 愿景一致。   通过供应链金融为企业支付融资   CapitalBay专为提供短期流动资金融资，为中小型企业提供发票融资方案。供应商通过发票融资方案，向CapitalBay出售未收款的发票，从而提早获取付款。另一方面，买家能通过CapitalBay的融资方案延长付款期限。自2017年第四季度运营至今，CapitalBay已成功为1,300项交易提供高达7千5百万令吉 (RM 75 million) 的融资。   “ 现金流是许多企业的生命线。 如今，许多小企业都面临现金流的烦恼。然而，传统的贷款模式难以填补这空缺。我们坚信，缩短企业的现金周转周期可改善他们的现金流，促进业务发展。这也是我们建立CapBay的初衷。” CapBay创办人洪幸贤先生说。     资助企业与高回酬率一举两得 “有了P2P平台运营准证，我们诚意地邀请各位投资者一同加入我们的使命，为东南亚各地的企业提供更明智的融资，促进企业成长及繁荣，改善与提高企业雇主、打工一族，及社会大众的生活水平。” 洪先生说道。   CapitalBay补充说明，其投资者有望获得高达18%的年回筹。除此之外，由于他们的融资产品大多属于短期贷款（一般为期两个月），所以投资风险会相对比较低。 CapitalBay 的金融产品主要以高信誉企业的发票做担保。这些企业都是跨国公司，蓝筹上市公司以及政府相关机构，资信等级相对地高。投资者绝对可以放心。   推出至今，通过专有风险评估程式达到了零违约（zero default）记录   中小型企业需要融资方案大多数是短期贷款，需要的金额也较小。银行们的信贷评估流程，大部分为了大规模交易而量身定制的，对财务报告和抵押条件有严格的要求。因此，中小型企业的贷款申请往往都被拒绝。但CapitalBay 不一样，它们使用领先的科技（例如：机器学习（Machine Learning）独创的风险评分程式以预测平台上每笔交易的风险，为中小型企业提供新的融资渠道。推出以来，CapBay的人工智能与机械学习模式的分析稳守 0% 的信贷违约。 2018年5月，CapitalBay被誉为 ”亚太区最杰出金融科技平台” 及 “马来西亚杰出金融供应链管理”。与全球各顶级银行和知名领导者丹斯里洁蒂·阿兹（Tan Sri Zeti Akhtar Aziz）共享这颁奖舞台。   有兴趣加入我们P2P 平台   我们即将推出P2P融资平台。赶快注册成为我们的会员，将有机会加入我们参与和银行与投资机构相等的高素质融资交易，机会难得，别错错失良机。 点击 这里 […]

一个来自“海鲜”的故事 Xing Xian来自柔佛州一家经营海鲜加工厂的家庭。他发现，他的家人、供应商和买家（大型超市）之间的供应链有问题。由于渔民需以现金交易，供应商得立即付款；反之，超市则以发票为基础，以60至90天的付款期限方能付款给供应商。这2到3个月的付款期间，公司需支付员工薪资，业务得照常运作。因此，越大规模的公司，对较小的供应商付款期限就越长。 很不幸的是，这无疑对小型企业造成重大的打击，影响了大马的经济环境。 因此，CapitalBay的出现改变供应链金融的未来，为该问题提供整体解决方案。 从伦敦到马来西亚 在伦敦深造期间，他发现一家伦敦的初创公司专注解决类似的问题，由此，坚定了成立CapitalBay的想法。在一次商业社交活动中，大马国家银行（Bank Negara）注意到他与另一位联合创办人。Xing Xian 承认在最初与国家银行讨论结果非常不理想，但也因此发现其中的发展潜力。随后，经过数百小时的讨论与调整，渐渐形成今天众所周知的CapitalBay。 种种挑战 在CapitalBay成立前，大马人民对于供应链融资和保理业务等等，关于此类型融资替代方案的认知非常低。由于处理过程繁琐，银行也不愿参与其中。银行进行此类的融资方案都需要证券与抵押品，无论风险高低。此外，客户也需要支付印花税和其他费用，例如律师费，最终导致成本上升，对大多数公司而言无疑是不太可行。 解决方案 如今，在CapitalBay只需几个步骤即能简化过程。 首先，通过技术基础设施为大马的中小型企业解决问题，该技术基础设施将电子系统连接至银行，提供双向系统查看交易流程。 任何贸易交易是无纸化和透明化。 其次，法律基础设施成为平台一部分，平台可使用生物指纹对文件进行电子签名。 最后，运营基础设施包括教育和知识，以确保过程中所有组成部分顺利实施。 CapitalBay通过每笔交易收取的少量费用作为公司收入，并于每个月为发票融资支付数百万美元的资金。 扩展方面，初创企业希望为电子发票创建基础设施，从而减低纸质交易的需求。 藉由电子发票功能，重点投入在数字化与自动化采购付款流程上，进一步提供更好的供应链融资服务，改变大马多数中小型企业的业务前景。 在大马国家银行，大马证券委员会及风险投资—— KK基金的支持下，CapitalBay拥有无可逆转的发展潜能，继而改变大马供应链运作模式。 如今，供应商和银行可依靠CapitalBay来创新和简化供应链财务，通过低成本，易于使用且可靠的平台，提高大马中小型企业的地位，随着时间的推移变得更完善。

With great pleasure, the internship opportunity I had with CapitalBay was a great experience to me. A safe yet challenging environment The jobs are never repetitive, there are challenges and problems always arise and I have to find ways to solve it. Looking back to my internship experience at CapitalBay, it really has strengthened my […]

Today’s my last day of internship, but it certainly feels like I’ve just joined the company yesterday. The internship at CapitalBay is my first one ever, and it turned out to be a very different one from what I have expected before joining.

An eye-opening experience
Rather than doing routine jobs, I had the chance to execute various tasks, ranging from web development, to content producing, and to business development, which made every single day a different experience, and a new chance to learn something new that I might have not even heard of.

Having no prior finance background, CapitalBay is certainly the right choice for me to pick up some basic financial knowledge that surrounds the operation of the company. As an intern, I was welcomed with a set of onboarding materials which include a wide range of financial knowledge that allowed me to have much clearer understanding about the relevant financing ecosystem and beyond.

Personally, I enjoyed the learning culture the most, where we had the absolute flexibility to approach anyone in the office to seek for relevant guidance, and they were always more than happy to help out despite having heavy workload. Besides, we were often encourage to attend external events with partners. I am grateful to have taken those exclusive opportunities to expose myself in pitching to potential clients from different industries, while grasping new experience and knowledge relevant to each event.

The one and only “CapitalBay/CapBae Culture”
Throughout my internship period, I worked closely with a few other interns, alongside with the business development manager and web developer. It was not just a fun environment, but at the same time, we all had great team dynamics, teamwork and the motivation to learn and to think out of the box. The friendliness, humbleness and passion from the senior management and even among C-suite have truly formed such an interactive workplace where our ideas and commitment are valued. Having the chance to work with the people at CapitalBay is the part of the experience that I surely treasure the most. Some of us might have ended our internships, but our friendships have just begun.

Of course, it wasn’t all about work. There are also biweekly badminton session, and every lunch time that we will all spend together with a variety of amazing food options. (Btw, free lunch on the first and last day of internship ! )

I am extremely grateful to be part of the CapitalBay team. Although it was a short internship, it had undoubtedly became one of the most memorable experience in my life.

Join us!
If you are interested in seeking internship/employment opportunities with CapitalBay, do send your resumé to [email protected].

KUALA LUMPUR, 17 May – CapitalBay, an award-winning Malaysian multi-bank supply chain finance platform has received the approval from the Securities Commission Malaysia (SC) to operate a peer-to-peer (P2P) financing platform. The registration licence was presented today in a ceremony hosted by the Chairman of SC, YBhg Datuk Syed Zaid Albar and attended by the […]

It’s a fact that bad credit is bad for business, especially when you need funding to manage cash flow and grow. Many business owners believe that it’s impossible to get affordable financing with a bad credit. However, the good news is that’s not always the case! It is still possible to get funding for your [...]