SMEs in emerging markets face significant challenges, including inflation, rising interest rates, and rising salary costs. Access to earlier payment on fair terms can be a valuable resource for these suppliers, helping them to manage their cash flow, invest in their businesses, and build strong relationships with their customers. This is not only beneficial for the SMEs themselves but especially for the supply chains that rely on them.
Small and medium-sized enterprises (SMEs) in emerging markets, particularly in Southeast Asia, face challenges that can hinder their ability to grow and innovate, or even sustain their businesses. One major challenge is the recent inflation, which has driven up costs for these enterprises. In addition to inflation, SMEs in emerging markets also face rising interest rates, which can make it more expensive for them to borrow money, and rising salary costs, which can put pressure on their bottom line.
These challenges can make it difficult for SMEs in emerging markets to grow and innovate, and can even threaten their ability to sustain their businesses. This is a concern not just for these enterprises, but for the supply chains that rely on them as well. For example, if an SME supplier in an emerging market is struggling to stay afloat due to rising costs, it may be unable to meet its obligations to its customers, which could disrupt the supply chain.
One way to help address these challenges is by providing SMEs with access to earlier payment on fair terms. This can provide a much-needed source of cash flow, which is often a challenge for small businesses. When SMEs have to wait a long time to be paid by their customers, it can create a cash flow gap that can be difficult to bridge. By offering earlier payment on fair terms, businesses can help SMEs to bridge this cash flow gap and ensure that they have the resources they need to operate and grow.
In addition to providing a source of cash flow, earlier payment on fair terms can also help SMEs to build stronger relationships with their customers. When businesses pay their suppliers on time, it can demonstrate a commitment to the supplier and create a sense of trust and collaboration. This can be beneficial for both parties, as it can help to foster a long-term, mutually beneficial relationship.
InvoiceNxt is an enterprise SaaS solution designed especially for emerging markets. It is focused on digitising B2B transactions between buyers and suppliers and offering fuss-free early payment in form of supply chain financing to suppliers ( large, medium& small, and micro enterprises) regardless of how small the invoice amount is. InvoiceNxt is ESG-inclusive and aids corporates in achieving their net-zero targets.
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