Inflation isn’t done yet – but for small-to-mid-sized businesses, there are alternative ways to weather the storm.

By Abigail Czinege – Director of Strategic Advancement

Recently, Kompass Funding conducted an online poll, specifically regarding finding new workers, retaining talent, inflation, and cashflow. Unsurprisingly, one of the biggest concerns companies face today is inflation. We’ve seen record-high PMI statistics over the last two months, and it’s no surprise that owners are looking for outlets to cope with rising costs.

Rising costs coupled with supply chain issues are forcing companies to float cash, extend payment terms, and potentially even downsize their companies. A recent national survey of 1,107 small business owners conducted by Goldman Sachs found that 91% of businesses said these broader economic trends [inflation and supply chain disruption] are having a negative impact on their business; 88% of small business owners say small businesses are struggling relative to bigger businesses in their local communities.

Higher costs, rising prices, overhead expenses and tighter profit margins make it harder for businesses to weather the inflation and supply chain storm. These are all options that business owners might not want to consider but are necessary for many.

Solutions for AP and AR Payments

Fortunately, there is a solution to stunt the effects of inflation. Alternative lending and cash-flow solutions provide more opportunities for small-medium size business owners who are struggling with accounts payable and accounts receivable. Through Kompass 24, companies can convert outstanding invoices to cash in as little as 24 hours. Companies can simply submit invoices to Kompass for immediate funds, instead of waiting 30/60/90 days for payment from their customers.

Another option is our Kompass Accelerate program which allows companies to maintain their payment terms with their suppliers/vendors with the opportunity to add additional revenue to their bottom line. Kompass will fund your suppliers/vendors on a weekly basis and help alleviate your AP department from requests for early payment, and we even share a percentage of our revenue with our clients each quarter.

Kompass 24 or our Kompass Accelerate program may be the right fit for your business

As business owners ourselves, we understand the importance of consistent and strong cash flow. When cash is either held up in invoices or quickly pushed out the door to meet payroll or supplier/vendor payments, Kompass Funding can provide comprehensive accounts receivable and accounts payable management, without having to change a company’s normal operations.

Don’t let inflation and rising costs slow down your company’s progress. Instead, look for ways to improve your cash flow or ways to add additional revenue to your bottom line. If you’re interested in our AR and AP programs, let’s get in touch and find the right solution for you.

Abigail Czinege is the director of strategic advancement at Kompass Funding, focusing on growing and advancing business within sales, marketing and corporate strategy.

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Get the funding you need, when you need it.

Give us a call to discuss your business funding objectives, so our advisors can show you examples of similar businesses leveraging cash-flow solutions to scale their business quickly.

You can customize and manage how you want to factor with Kompass Funding, so you get the funding you need, when you need it. Our clients can even avoid waiting 30 to 60 days for your customers to pay invoices, we pay you the amount of the invoice within 24 hours and assume the risk of collection.

Now you can focus on growing your business.