Small business
Payments
Accounts payable
Accounts receivable

Business Cash Flow: Daylit’s Working Capital Products

Daylit, a provider of affordable, on-demand finance, offers a cashflow toolkit with three distinct products designed to help small businesses better manage their cashflow.

Jared Shulman
May 30, 2023

Small Business Cashflow Toolkit

In the dynamic world of small businesses, managing cashflow effectively is a critical success factor. Daylit, a provider of affordable, on-demand finance, offers a cashflow toolkit with three distinct products designed to help small businesses better manage their cashflow. These three products – PayLater, FundNow, and OfferTerms– offer unique benefits that can significantly enhance a company’s financial stability and growth potential.

The first of these products, PayLater, is designed to boost a company’s buying power by delaying payments to vendors. This innovative tool allows businesses to increase their order sizes without the immediate financial burden, thereby qualifying for quantity discounts and improving their profit margins. For instance, a small retail business could use PayLater to purchase larger quantities of inventory at a discounted rate, thereby increasing their profit margin when these items are sold. Moreover, PayLater helps businesses smooth out vendor payments, thus avoiding sudden shocks to their bank balance. This can be particularly beneficial during periods of unexpected expenses or lower-than-expected revenues, as it allows businesses to maintain their operations without the stress of immediate large payments.

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FundNow is Daylit’s receivables-financing product. An approved advance can provide cash before a customer pays an eligible invoice. It does not itself make the customer pay sooner. Confirm the advance, fees, recourse and settlement timing in the financing agreement.

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OfferTerms is described here as a way to offer customers payment terms while arranging financing for the seller. Confirm current availability, eligibility, fees and settlement timing with Daylit before offering it to a customer.

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In conclusion, the suite of products can have a major impact on how small businesses manage their cashflow. By using tools that delay vendor payments, speed up customer collections, and provide flexible payment terms to customers, small businesses can better navigate financial challenges and refocus on their core competencies. These innovative solutions not only enhance a company’s financial stability but also contribute to its growth and success in the competitive business landscape.

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Further reading

Cash forecasts need operational input and a clear view of future receipts and payments. See EY’s analysis.

Related guidance: How to Sell Accounts Receivable to an Embedded Lender; Cash Conversion Cycle: Free Working Capital Analysis.

References

Insights

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Delay supplier payments with PayLater

Learn how you can pay your suppliers early, enjoy early-pay discounts and pay back up to 90 days later.

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Speed up cash collection with FundNow

Learn how you can get paid upfront on your sales invoices.

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Offer flexible payment terms to your customers with OfferTerms

Learn how you can get paid upfront, while your customers pay later.

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