Paying workers on time has turn into tougher because of the pandemic, lamented Matthew Shia, proprietor of home-based bakery ONLYKAI. Resulting from provide chain and cargo delays, provider deliveries are sometimes not obtained on time and this impacts the enterprise’ potential to pay its employees.
“Manufacturing will get delayed. The fixed fear about not having enough money circulation to tide us over bulkier provider funds is at all times there,” stated Matthew.
Matthew will not be alone in going through the day by day stressors of managing funds. Raynald Zhang, founding father of native eyewear enterprise Foptics, stated that as a result of its enterprise’ gross sales come from numerous on-line and offline sources, holding monitor of funds turns into tough.
“We attempt to use digital means to make transactions as a lot as attainable so most transactions are recorded appropriately. There should exist an answer that may consolidate them for accounting to be accomplished easily.”
A small and medium-sized enterprise (SME) proprietor often wears a number of hats — from managing manpower, to paying for lease, advertising the enterprise, and investing in analysis. All these are duties and bills that one has to account for day in and day trip.
A research by the Affiliation of Chartered Licensed Accountants Singapore final 12 months confirmed that nearly seven out of ten small companies needed to lower or cease their spending as a result of pandemic woes. In one other research, money circulation mismanagement was cited as a serious motive why small companies fail.
A number of companies Vulcan Publish spoke to agreed that the most important bugbear to enterprise homeowners is money circulation. With out that, companies have a low survival charge.
At occasions, even probably the most prudent enterprise proprietor could run into money circulation issues. For instance, he/she could not have obtained cost from the shopper, however has to nonetheless pay suppliers to maintain the subsequent venture going.
“Salaries come into our consideration when money circulation will get tighter. As a enterprise, we are able to’t have our workers working for us realizing that they couldn’t be paid on time. Despite the fact that we want to improve our income usually and scale the enterprise, we don’t contemplate doing it on the expense of not making well timed wage funds,” stated Matthew.
How Flex and ipaymy assist small companies resolve money circulation issues
Happily, the fintech increase lately has led to new cost and money administration choices that give smaller companies larger entry to working capital, like Flex and ipaymy.
Since incorporating ipaymy and Flex into his enterprise, Matthew stated ONLYKAI’s money circulation points are higher cushioned.
“Everybody chooses to stay on the safer facet of issues now. With financing and credit score line options just like the one ipaymy and Flex provide, we are able to safekeep our money reserves for wet days whereas staying open to enterprise into enterprise offers that would presumably require extra capital.”
Flex, in partnership with Finaxar Capital ll, supplies small companies with a line of credit score, accredited in beneath 48 hours. This line of credit score can be utilized by means of a Flex Visa bodily or digital card, with funds simply consolidated by way of a single platform.
In the meantime, by means of ipaymy, SMEs can faucet on their traces of credit score to pay for bills beforehand not attainable by way of bank cards — resembling lease, salaries, invoices, and even company tax. This offers them an added choice to not contact their money sources in any respect.
Flex helps SMEs flex their money circulation
Launched in 2021 by Singapore-based Finaxar Capital, Flex is a spend administration resolution collectively developed in partnership with main funds expertise firm Visa.
Helmed by Group CEO Dr Tan Sian Wee, the enterprise — which is at present within the technique of acquiring a licence with Singapore’s central financial institution — is backed by many enterprise capital companies, together with Monk’s Hill Ventures, 500 startups, and Cathay Enterprise.
“We digitise finance and supply an all-in-one spend administration platform that allows companies to control and handle their spending, and monitor their transactions,” stated Flex.
“Enterprise homeowners can even use Flex to dispense Visa playing cards to employees for work-related bills like transport allowance.”
Historically, staff must ship receipts and file a declare with the corporate, and that might take a number of enterprise days for the claims to be cleared earlier than the employee is reimbursed. With Flex, small enterprise homeowners can empower their employees to handle their very own bills, with the peace of thoughts that spend controls and full visibility supplies.
At this time, SMEs can subject limitless Visa digital playing cards, and as much as 20 Visa bodily playing cards with Flex. Transactions made can even simply be tracked on the app by an administrator, which ensures transparency on funds.
Enterprise homeowners can even set spending limits on the Visa playing cards or freeze playing cards when required, the fintech agency stated.
“Funds made with a Flex card will be drawn down from the credit score traces prolonged by Flex by means of its associate, Finaxar Capital ll. This service, also called Flex PLUS, is interest-free for as much as 35 days, a credit score line that small enterprise homeowners can faucet on,” added Flex.
“The quantity of credit score can vary from S$3,000 to S$100,000, with approval given as quick as 24 hours, or inside 48 hours relying on the quantity required by the enterprise proprietor.”
If a buyer is unable to make cost in full, a 3 per cent month-to-month curiosity is charged on the excellent quantity. That is much like bank cards at conventional banks.
Flex has plans to roll out an app model supported by each iOS and Android by the tip of this 12 months or early subsequent 12 months.
Tapping on ipaymy to unlock “funds”
ipaymy is a Singapore-based agency that has presence in different international locations like Australia, Hong Kong, and Malaysia.
It lets clients pay their largest bills by bank card. This eases the burden on funds that often require money solely, like store lease, staff’ salaries, and tax funds.
SMEs get to satisfy month-to-month cost obligations whereas holding money accessible to gas development, ipaymy stated.
“For instance, workplace lease is often collected in money. With ipaymy, customers can faucet on the service to unlock money to pay for store lease,” stated ipaymy.
“What they should do is to easily enter their bank card info, select a cost class, fill within the required info, and have the cost devoted for rental made in as little as two enterprise days.”
Whereas the payee receives the funds from ipaymy two working days later, the payer solely must settle the quantity as soon as their bank card assertion is due.
Paying with their card additionally permits customers to faucet on bank card rewards and cashback from banks.
“The easiest way to handle money circulation is to know the place all of your money goes and funds accordingly. All the time plan forward and ensure you have a gradual runway. Having a bank card helps as you’ll be capable of have an extended timeline to work with,” stated Tze Hing, founding father of e-commerce enterprise Delicate Asian Treats.
SMEs that arrange a enterprise account can even get a devoted account supervisor, and the supervisor will help as an prolonged service line to rapidly handle companies’ on a regular basis wants.
Different advantages of ipaymy embody having the ability to schedule recurring funds, handle invoices, set cost reminders, and monitor cost standing in a single dashboard.
Why Flex and ipaymy are the all-in-one financing resolution for SMEs
Via Flex, SMEs can handle and monitor the bills of staff by issuing them Visa digital or bodily playing cards. They will additionally set limits to funds to stop overspending.
What’s extra, by tapping on the credit score line with Flex by way of Flex PLUS, this interest-free cost time period of greater than 35 days helps give an extra increase in money circulation.
Enterprise homeowners can go a step additional with ipaymy by putting their Flex Visa Playing cards on the platform to unlock credit score for cash-only purchases.
SMEs can even faucet ipaymy’s all-in-one dashboard to ease their operational duties. They will schedule recurring funds, handle invoices, set cost reminders, and monitor cost standing by way of the one-stop platform.
Most significantly, the sources for working capital are expanded and there’s more money liquidity.
From establishing a Visa bodily or digital industrial card to managing enterprise workflow, monitoring enterprise bills, to paying suppliers, each Flex and ipaymy are complementary as they supply companies higher money circulation.
Ipaymy and flex are having an ongoing promotion proper now. Customers who use each ipaymy and Flex can get decrease transaction charges of 1.5 per cent by making funds with a Flex Visa card by means of ipaymy. This deal will probably be legitimate till the tip of March 2022.
SMEs can join Flex in simply 10 minutes right here.
Featured Picture Credit score: Flex ipaymy, Vulcan Publish