{"id":83,"date":"2021-10-27T15:44:49","date_gmt":"2021-10-27T10:14:49","guid":{"rendered":"https:\/\/www.zikzuk.com\/blog\/?p=83"},"modified":"2021-10-27T16:12:39","modified_gmt":"2021-10-27T10:42:39","slug":"how-to-manage-cash-flow-issues-in-a-wholesale-business","status":"publish","type":"post","link":"https:\/\/www.zikzuk.com\/blog\/how-to-manage-cash-flow-issues-in-a-wholesale-business\/","title":{"rendered":"How to manage cash flow issues in a wholesale business?"},"content":{"rendered":"\n<p>Cash flow is the lifeblood of any wholesale business. Positive cash flow enables you to run your business efficiently, pay your expenses, match client expectations, and reinvest in your company for&nbsp;growth. So, knowing that cash is king, how can you better manage it?&nbsp;&nbsp;<\/p>\n\n\n\n<p>While it is true that all businesses must maintain their cash flow positively and avoid running out of money at inconvenient times, excellent cash flow management is key to wholesalers&#8217; profitability and effectiveness as a business. As a B2B business, the time lag between paying for items from local or international suppliers and receiving payment after delivery to your clients is usually measured in months. Bridging this gap is thus a vital\u00a0<a rel=\"noreferrer noopener\" style=\"color:#0000cd;\" href=\"https:\/\/www.zikzuk.com\/blog\/integrate-bfm-with-tally-and-simplify-business-finances\/\" target=\"_blank\">business finance<\/a>\u00a0issue.\u00a0\u00a0<\/p>\n\n\n\n<p><strong>Most Common Reasons for Cash Flow Issues in Wholesale Businesses&nbsp;<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Sales fluctuate seasonally&nbsp;&nbsp;<\/li><li>Failure to send out invoices and collect client payments on time&nbsp;<\/li><li>Overstocking and low-profit margins&nbsp;&nbsp;<\/li><li>Growing too rapidly and putting a strain on short-term funding&nbsp;&nbsp;<\/li><li>A financial facility that does not adapt to the changing demands of the firm&nbsp;&nbsp;<\/li><li>Inadequate financial planning<\/li><li>Disorganized method of spending&nbsp;&nbsp;<\/li><li>Rent and utilities&nbsp;&#8211;&nbsp;high overheads&nbsp;&nbsp;<\/li><li>Bad debts&nbsp;&nbsp;<\/li><li>Inadequate credit control and credit checks&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<p><strong>How Do You Solve Cash Flow Problems?&nbsp;<\/strong>&nbsp;<\/p>\n\n\n\n<p>Although cash flow is a vital aspect of any business, cash flow techniques should differ based on whether you run a wholesale or retail&nbsp;business. Some cash flow management strategies that wholesalers should employ may not necessarily apply to a retail setting and vice versa.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Here are some of the most critical&nbsp;<a href=\"https:\/\/www.zikzuk.com\/blog\/cash-flow-management-made-easy-with-zikzuk\/\" target=\"_blank\" rel=\"noreferrer noopener\" style=\"color:#0000cd;\">cash flow management<\/a>&nbsp;challenges for businesses and how to deal with them as a wholesaler.&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>Accounts Receivables<\/strong>&nbsp;<\/p>\n\n\n\n<p>Sales and timely client payments are essential for any business&#8217;s cash flow, and irregularities in earnings can rapidly lead to cash flow problems.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Wholesalers usually sell on&nbsp;credit, which implies that some payment for products is deferred later, causing cash&nbsp;inflow to be delayed. In this case, combining wholesale business operations into a single system and&nbsp;managing&nbsp;accounts receivable&nbsp;at one place with the help of BFM, helps enhance cash flows&nbsp;and&nbsp;optimize your payment&nbsp;cycle.&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>Poor Cash flow Visibility&nbsp;<\/strong>&nbsp;<\/p>\n\n\n\n<p>Business owners often lack the knowledge or latest updates on the cash flow scenario due to poor cash flow visibility.&nbsp;The time&nbsp;lag&nbsp;in&nbsp;making&nbsp;the&nbsp;payments&nbsp;to suppliers&nbsp;and getting paid&nbsp;from customers&nbsp;after&nbsp;product&nbsp;delivery&nbsp;usually ranges from 60-180 days&nbsp;and&nbsp;real-time&nbsp;receivables and payables&nbsp;tracking is not a common practice.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Bridge the gap with BFM&#8217;s 360-degree cash flow visibility.&nbsp;Get all receipts, payments, sales, purchases, receivables and payables in&nbsp;a single dashboard.&nbsp;Keep&nbsp;track&nbsp;of upcoming vendor and supplier payments and ensure a positive cash&nbsp;flow throughout.&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>Invoice Generation and Delivery Management&nbsp;<\/strong>&nbsp;<\/p>\n\n\n\n<p>Prompt invoicing and delivery are essential not only for cash flow management but also for customer satisfaction. Delivery delays can lead to incorrect cash flow statements and reporting, as well as a negative customer experience.&nbsp;&nbsp;<\/p>\n\n\n\n<p>With BFM\u2019s automated payment reminders, wholesalers can cut-short the&nbsp;time lag between invoice generation and payments&nbsp;received. BFM accelerates payment&nbsp;collection&nbsp;up&nbsp;to 20%.&nbsp;&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.zikzuk.com\/bfm\" target=\"_blank\" rel=\"noreferrer noopener\" style=\"color:#0000cd;\">Discover more<\/a>&nbsp;about how BFM&nbsp;can help wholesale businesses achieve growth faster.&nbsp;&nbsp;&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cash flow is the lifeblood of any wholesale business. Positive cash flow enables you to run your business efficiently, pay your expenses, match client expectations, and reinvest in your company for&nbsp;growth. So, knowing that cash is king, how can you better manage it?&nbsp;&nbsp; While it is true that all businesses must maintain their cash flow&#8230;<\/p>\n","protected":false},"author":1,"featured_media":84,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[7,21,6],"class_list":["post-83","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-business-financial-management","tag-business-intelligence-platform","tag-financial-planning"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to manage cash flow issues in a wholesale business? - Zikzuk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zikzuk.com\/blog\/how-to-manage-cash-flow-issues-in-a-wholesale-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to manage cash flow issues in a wholesale business? - Zikzuk\" \/>\n<meta property=\"og:description\" content=\"Cash flow is the lifeblood of any wholesale business. Positive cash flow enables you to run your business efficiently, pay your expenses, match client expectations, and reinvest in your company for&nbsp;growth. 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