Small businesses prioritizing supplier relationships see improvements in critical areas that contribute to greater profit and long-term growth.
— Armando Armendariz
EL PASO, TEXAS, USA, November 9, 2023 /EINPresswire.com/ — Leading invoice funding company Viva Capital says small businesses focusing on supplier relationships are seeing greater profits than their counterparts. Additional coverage of the topic is available in “How to Improve Supplier Relationships with Invoice Factoring,” which is now live on VivaCF.net.
The company draws on NFIB surveys, which indicate nearly nine in ten small businesses are impacted by supply chain disruptions. The ongoing challenges lead to diminished sales and distrust among customers, causing potentially irreparable damage to business reputations and hindering long-term growth. Yet, all businesses aren’t impacted equally.
“Small businesses that diversify and strengthen supplier relationships face fewer disruptions, experience more innovation, and see lower costs,” explains Armando Armendariz, Director of Business Development and Partner of Viva Capital.
He points to Zippia research, which shows that brands can double their profit by reducing supply chain costs from nine to four percent, and adds that strong supplier relationships are key here, too. He suggests that brands seeking to improve their supplier relationships focus more on communication and developing more of a collaborative relationship but adds that payment issues are often a sticking point.
“Nothing destroys supplier relationships faster than non-payment and slow payment,” Armendariz notes. “You must show your suppliers that you value and respect them by paying promptly every time.”
Armendariz says that small businesses, especially those coping with rapid growth, often experience cash flow gaps that cause them to put off paying suppliers until after payments are due. This damages the relationship, can eliminate any preferential pricing the company receives, and increases the odds of disruption down the line. However, businesses that leverage invoice factoring accelerate payment on their receivables, making it much easier to make vendor payments in a timely manner and build stronger relationships.
Those interested in learning more about invoice factoring are encouraged to contact Viva Capital at VivaCF.net.
Founded in 1999, Viva helps B2B businesses of all types accelerate cash flow through specialized funding solutions like factoring, accounts receivable financing, and asset-based lending. Their simple qualification process makes it easy for small and mid-sized companies to get vital funding despite lack of credit or time in business. Additional information is available at VivaCF.net.