Business owners across all industries are constantly looking to lower expenses and improve cash flow. In order to get a better handle on business finances, we are going to take a look at a few things most companies can implement to lower costs and boost cash flow.
Independent Contractors Lower Payroll Expenses
Independent contractors can lower payroll expenses as well as quarterly tax liabilities for businesses. Independent contractors can work as regular employees or on a per-project basis. Independent contractors are also more flexible with their hours and are usually highly specialized to meet the demands of their specific industries. While the hourly rates of independent contractors are somewhat higher compared to those of full-time employees, but there is a trade-off in respect to business finances. Businesses do not have to provide benefits, health insurance, or pay unemployment taxes for independent contractors.
Equipment and Business Finances
Both leasing and purchasing options for equipment impact business finances. Purchasing equipment adds equity value to a business, but the initial expense can be very steep. Additionally, businesses have to take care of repairs out-of-pocket. Leasing may not add equity, but the monthly expenses are much lower and regular maintenance and repairs are handled by the leasing company. Leasing equipment can be a cost-friendly option for smaller businesses and those companies with lower capital reserves.
Cash Flow and Business Finances
Businesses of all types need to maintain a strong cash flow to thrive and grow, but cash flow is not always directly tied to sales. If sales are high but customers are getting invoices with payment schedules of 30 days or longer, there can be gaps in cash flow. Regular overhead and incidental expenses still need to be met while waiting on payments from customers. The lag in payment caused by payment schedules can threaten business finances. To resolve this situation and boost cash flow, businesses use invoice factoring. Invoice factoring converts unpaid invoices to cash quickly and efficiently so companies can cover expenses, build up capital, and maintain healthy business finances.
At Single Point Capital, we help businesses boost cash flow with our invoice factoring services. We convert your unpaid receivables to cash within a single day, so you can access your funds quickly and reduce the stresses caused by business finances. Contact our team today to get started.