Cash Management: How FBE Can Increase Your Business’ Cash Flow

cash flow

There is a simple truth that defines any healthy or successful business: a business that is making money. While many smaller brand owners measure their business’ level of success solely based on its net profits (which is all well and good), they often tend to overlook another crucial element that should, by all accounts, be monitored in tandem alongside their end profits: the business’ cash flow.

What is cash flow?

In a nutshell, the term “cash flow” refers to the total amount of cash that flows in and out of your business. It is crucial for a myriad of expenditures required to run a healthy business, such as daily operations, rent, paying your employees, and purchasing necessary inventory. Positive cash flow is when there is a higher inflow rather than outflow of cash in your business, whereas negative cash flow is the opposite. These types of cash flows are then used as indicators of either increased or decreased liquid assets that your company may have at its disposal.

As your company grows, it is almost certain that your business expenditure will grow along with it. Whether it be hiring new staff or increasing inventory to meet the demands of cross-border ecommerce, having positive cash flow goes a long way in ensuring your overheads are covered day in and day out.

How FBE Can Increase Your Business’ Cash Flow

By becoming an FBE brand owner, your business will have the advantage of experiencing a significant reduction in operational costs based on the benefits listed below:

  • Access to our centralized distribution and integration system. Remove the worry of having to incur greater costs to your business caused by delayed fulfillment, customer miscommunication, and the inability to keep track of your inventory across multiple ecommerce platforms. Our seamless system is dedicated to centralizing orders across all our integrated digital platforms, providing your brand with the benefit of hassle-free, cost-effective automated fulfillment to anywhere in the world.
  • Access to our highly-experienced ecommerce team. One of the most costly expenditures for any brand owner looking to penetrate the global ecommerce marketplace is the need to hire an in-house ecommerce team to manage your online stores. By partnering with us, your company will have unfettered access to our team of experts to handle the entirety of the ecommerce aspect of your business for only a quarter of the cost of having your own team.
  • Access to our duty-free warehouse. Strategically located in an FTZ, our duty-free warehouse dramatically improves your business’ cash flow by restoring up to 30% of your inventory’s worth, as you will only be required to pay duties per item post-sale. Furthermore, storing your goods in our warehouse provides your business with the added bonus of negating up to 15 different forms of fees needed to be paid each time your product is shipped to a customer globally.

Profits and cash flow go hand in hand towards determining the success of a business. That being said, without a positive inflow of money into your company, your business runs the risk of not having a secure buffer to handle future financial challenges, especially if you are a modest business owner looking to expand, as a study has shown that 82% of small businesses fail due to poor cash management. Therefore, by partnering with us, you can rest assured knowing that your brand can experience healthy and steady growth thanks to having an increased positive cash flow right at your fingertips for all your business’ operational needs.

 

Want to learn more about how to become an FBE brand owner with us? Check out our other related articles, or visit our website at www.everpeaks.com to get in touch with one of our team of highly qualified experts.