Behind almost every innovation is a complex web of skill technicians, project managers, parts and machinery. Consequently, virtually every growing technology company will have an extensive supplier list that makes up the services and components required to make the technology a success. While a comprehensive supplier list can reduce the risk of non-delivery, it can also cause problems, especially when it comes to supplier finance.
Harness Supplier Power For A Growing Business
For many growing technology companies, an extensive supplier list is essential when you consider how many components make up some of our must-have consumer products. For example, a typical mobile phone has more than 300 parts, while a standard car will have more than 30,000 components.
Technology businesses rely on their suppliers in order to create and distribute world-leading products and get them to market as quickly as possible. So, with that in mind, keeping a healthy supplier ecosystem and ensuring all your suppliers have a happy working relationship with your growing business is essential.
So, how can you keep your suppliers happy?
How Supplier Finance Can Help Your Growing Business
As a growing business, cash flow is not easy to manage. There will be issues along the way that can compromise your cash flow; this doesn’t just affect small businesses either. ASOS lost £25 million through supplier issues and failing to have sufficient stock available while Apple’s relationship came to a halt with Super Micro after a malware incident.
However, to keep the suppliers that you need for your business happy, prompt payment is often the answer.
For a healthy supplier ecosystem and happy suppliers who will support the growth of your business, ensuring they are paid on time is critical. However, when cash flow is tight, how can you afford to pay your suppliers when your clients have yet to pay you?
Supplier Finance is a solution that ensures you have the financial capability to pay invoices on time, even if your clients haven’t paid your invoices yet. GapCap offers Supplier Finance to a range of SMEs from different industries to help them pay their suppliers on time and maintain a healthy supplier relationship.
Supplier Finance is an innovative funding solution that can support growing businesses and technology companies during periods of cash flow delays. Simply select the invoices you need to pay, and GapCap will pay your suppliers on your behalf. Once you have been paid by your clients, you then repay GapCap.
How Can Supplier Finance With GapCap Help?
Recently, GapCap were delighted to support a digital marketing business with its cash flow. We set up a £450,000 Supplier Finance facility for them to use which can help them free up funding, improve supplier relations and accelerate their cash flow.
Find out how GapCap can help your growing business with Supplier Finance by getting in touch.