As the world is becoming digital, more and more companies want to have a quick and hassle-free payment solution. Every small business wishes to have a consistent invoice payment system that keeps them organized and simplifies their small business accounting process. Delays in payments or generating invoices can lead to losses and hamper business relationships.
NowAccount® is an invoice payment solution that redefines how and when businesses get paid. Headquartered in Atlanta, GA, Now® was created by serial entrepreneurs who felt the pain of waiting on invoice payments from larger customers. Now’s mission is to empower businesses to grow fearlessly through accelerated invoice payments. Inspired by the credit card system, NowAccount allows you to get paid immediately on your invoice while allowing your customers the flexibility to pay later. Now’s vision is to create a world where diverse businesses of all sizes have access to capital, commerce, and customer opportunities. By getting paid sooner, your business can have the revenue needed to support sustainable growth.
Managing Your Financial Risk
Every business carries a risk – whether you are a start-up trying to achieve rapid growth or a business that has been operating for more than 5 or 10 years trying to sustain growth, business risk is inevitable. One way to mitigate risk is to employ effective financial risk management strategies.
With NowAccount’s innovative payment system, you’re guaranteed to get paid, even if your customer defaults. Now® acts like a protection system – if your customer doesn’t pay, it absorbs that loss. Also, it’s not a loan nor factoring. It’s just your revenue coming in quickly, so you can watch your business grow.
Mitigating Financial Risk with NowAccount
Assess your Financial Risk: Identify any areas of your business that need extra attention or a solid plan for the future.
Stay Organized: Establish a record-keeping system to know exactly what is coming in and going out of your business.
Keep Accounts Receivables Low: Make sure your customers are paying invoices on time. If possible, try to reduce the payment terms to keep the cash coming in quickly.
Limit Loans: To reduce your financial risk, only take out a loan if you need to, and try to keep it as low as you can.
Diversify Income: Whenever possible, have income from more than one source to mitigate financial risk.
Working Capital Management
It’s no surprise that working capital is key to any successful, growing business. Working capital affects many aspects of your business — from delivering goods to customers, paying vendors and employees, to keeping the lights on at your brick and mortar store. Working capital is not only essential for meeting your short-term obligations but planning for sustainable long-term growth. NowAccount is designed to ensure you have working capital to help meet your short-term and long-term business goals.
US-based companies who sell to business or government customers globally can use NowAccount to increase their operating capital. If your customers rely on flexible payments and take more than five days to pay, NowAccount can help you grow. Unlike alternative financing solutions like loans and factoring that take a significant percentage of cash out of your pocket, Now® Corp charges a one-time, small fee based on each invoice. Your cost savings alone covers a low, flat fee. There are other downsides to factoring and loans that can hinder business growth. In fact, both alternative financing options can impact your balance sheet by increasing your liabilities. With NowAccount, you can increase your working capital with no liability change.
Reduce Account Receivable Management Costs by invoice acceleration tool
Starting a business is easy, but scaling a business can prove challenging as many owners struggle to balance growth and operational management. In most businesses, the most extensive use of time and talent is dedicated to A/R management, which doesn’t help in acquiring new customers. Accounts receivable management can be tricky for most businesses because you have limited control over how quickly your customer pays you, and nowadays, customers want longer payment terms. This can prove to be time-consuming and costly because until your customer pays, your revenue is tied up in accounts receivable and sitting in their bank account, which is why everyone wants to get paid quickly.
Accounts receivable management is essential to ensuring your customers pay their invoices and, in turn, increases liquidity and strengthens your company’s financial position. Firms that don’t closely monitor accounts receivable and enforce a formal collection policy may not generate sufficient cash flows for operation. If this happens, they may need to borrow money and incur interest costs. NowAccount’s B2B and B2G account receivable management helps you get paid quickly while offering extended payment terms so that you can focus on growing your business.
Cash Flow Management with NowAccount
Having a steady stream of cash on hand is one of the most critical aspects of every business. Cash on hand ensures you can pay salaries on time, cover recurring expenses like rent, and have funds to invest in the future of your business. Without healthy cash flow, it could be hard to pay your employees regularly. Most of the small businesses fail because of the lack of operating cash flow, which is usually caused by the cash flow constraints caused by B2B invoicing. When cash flow is separated from accounts receivable, the constant worry about paying bills can be eliminated. Instead of focusing on payments, you can focus on strengthening your vendor and customer relationships, on confidently paying utilities and payroll on time, every time, and on running and growing a successful company.
When you fulfill an order and issue an invoice to a customer, your revenue sits in your accounts receivable until your customer decides to pay. NowAccount, you can easily convert your accounts receivable into cash and collect your revenue within days of sending an invoice. With accelerated invoice payments, companies keep cash flowing and easily meet short-term goals and long-term projections. NowAccount is not only one of the best ways to ensure cash flow, but it’s also the least expensive and the fastest way to remove stress around business operations.
A Better Alternative Financing Solution for Your Business
All businesses experience a cash flow crunch where they need more cash than they have on hand. To continue with operations and increase cash flow, businesses consider traditional financing options like bank loans, lines of credit, or invoice factoring. NowAccount is an alternative financing solution that allows you to turn accounts receivables into cash quickly. By uploading your invoices into the NowAccount portal, you can convert your A/R into cash and eliminate the need for other stressful collections tactics, like negotiating new payment terms or offering early payment discounts. NowAccount only charges a flat processing fee, similar to a credit card, so you don’t incur hefty interest fees from traditional financing or variable and hidden fees from invoice factoring.
Waiting on unpaid invoices can put you in a cash flow crunch and truly hurt your business. NowAccount lets you unlock the revenue in your accounts receivable quickly and eliminate the need to take on debt to increase your cash reserves. NowAccount’s alternative business financing solution is designed for continuous and sustainable growth, without the risks associated with loans or factoring. The company strives to provide a better solution to traditional financing and invoice factoring solutions for your business.
Meet the CEO
Lara O’Connor Hodgson is the President and CEO of Now. She serves as an Entrepreneur in Residence at Harvard Business School and is an internationally recognized speaker, leading seminars on creativity, innovation, and access to capital.
Prior to Now®, Lara co-founded Nourish (the manufacturing company) and Insomnia, LLC, a firm specializing in investment, development, and management of complex and innovative “world-changing” projects. Her background also includes five years with Dewberry Capital Corporation, an Atlanta-based commercial real estate development and investment firm. She served as the company’s Chief Marketing Officer and Chief Operating Officer.
Lara received an MBA from the Harvard Business School and a BS in Aerospace Engineering with the highest honors from the Georgia Institute of Technology. Today, she serves as a Trustee of the Georgia Tech Foundation in addition to other Boards. E&Y recognized Lara as a 2018 Finalist for the Southeast Entrepreneur of the Year.