Alternative Financing: Using Corporate Payment Solutions to Help Manage Cash Flow

Download Now

The economy has continued to improve since the end of the recession, but many mid-sized companies still struggle to maximize monthly cash flow. Companies can pursue multiple avenues for improving that, including trimming operating costs, chasing late payments and negotiating new payment terms with vendors.

Another option for improving cash flow is coming up with alternative sources of working capital. Many short-term financing alternatives exist. Depending on the industry, they include factoring, sale/leasebacks, microloans, royalty financing, merchant cash advances and purchase-order financing.

A different option for alternative financing is a corporate card, including Corporate Cards offered by American Express. Some corporate cards allow companies to extend their cash flow without incurring interest, and also offer rewards and cash incentives. What’s more, corporate card programs include online tools that financial managers and executives can use to track spending, payables and rewards in real time.“Corporate card products offer huge productivity improvements, not just in accounts payable, but throughout the company, anyone involved in the whole procure-to-pay process,” says Jonathan Casher, president of Casher Associates, Inc., a Newton, Massachusetts, corporate finance consultant. “You know exactly when the money’s going to be taken out of your bank account. And you keep vendors happy because you’re not stretching your payments to them. To me this is a no-brainer.”

This report looks at:

  • Cash flow challenges at mid-sized companies
  • Alternatives to traditional bank financing
  • Benefits of using corporate cards to manage cash flow
  • How American Express® Corporate Cards can help improve cash flow management