Long Payment Terms Impacting Cash Flow?

Long Payment Terms Impacting Cash Flow?

By CapitalBay

Long payment terms have become a growing burden for small and medium enterprises (SMEs). As bigger companies tend to stretch their payment terms towards 30, 60, 90 and even 120 days, SMEs sometimes find it a struggle to meet ends meet. Their cash flow tends to be locked from within their supply chain and is having a hard time to cope with this ordeal. On a study done by the Wall Street Journal, up to 64% of small businesses have had their invoices gone unpaid for at least 60 days. Thus leaving little space for the companies to grow due to cash flow restrictions. In a study done back in 2015, we found that the median Days Payable Outstanding in Malaysia is around 45 days!

Making a sale is only half the battle. Owners must also endure the steps to make sure that their invoices that are sent out are paid in a timely manner. As an operator of an SME, it is likely that you’ll be sending multiple invoices each month. Nonetheless, this is only the first hurdle. Keeping track of all those invoices and ensuring that it is being paid in a timely manner is also the next concern. Being a small business owner often means you’re short on time, but it’s worth making the effort to get your invoicing set up properly. Having a process that helps streamline invoicing can drastically reduce the amount of time you spend collecting your hard-earned money. And that’s got to be great for your business.

Majority of small business owners have to deal with both incoming and outgoing invoices on a regular basis. If you receive an invoice from a vendor, it’s important to pay close attention to the options for repayment so you don’t risk losing them. Henceforth why CapitalBay was established. Our focus is to help responsible corporations optimise their working capital and provide businesses with real-time technology to collaborate with a wider network of financial institutions to access financing opportunities, with just a click of a button. Suppliers are often on the losing end of the supply chain when it comes to terms of having a cash flow to grow their business. In this regard, we will review the benefits of using our platform for the suppliers/vendors.


  • – View payment status
    Find out which invoices have been paid, which ones are due or past due. This allows you to have an overview of the money owed to you
  • – Get paid when you want to get paid
    With our pay now option, this allows the suppliers/vendors to choose when they want to get paid. It’s safe, easy and means you get paid almost instantly at a discounted rate depending on the invoice terms of payment.
  • – Better security
    E-invoicing is secure and safe to use. It uses special encryption similar to the banks. Your clients can trust it, so they’re likely to respond to it faster.
  • – Same day delivery
    Besides that, there is no excuse that they didn’t receive it because the platform allows transparency and once it is uploaded, it is there for them to see. There is no need to worry about if your invoices have arrived or not.
  • – Less cost
    By sending your invoices electronically, this will help save time compared to traditional methods. This also translates to your workers spending less time on minuscule tasks such as mailing your invoices and allows them to work on other areas more productively.
  • – Less complex and better cash flow management
    Keep track of your company’s cash flow by sending invoices to your clients directly through our platform.
  • – No more wrestling with paperwork
    No need to go through your pile of old invoices, everything can be seen on the platform.
  • – Multi-Bank Funding
    Numerous sources of liquidity, providing our clients with a limitless environment for success.
  • – Digital invoicing makes sense for good business
    It is only natural that your clients expect you to provide your products or services at such short notice. So it is only fair that you get paid when you want to get paid too. The benefit of digital invoicing is that it can eliminate barriers to payment and ultimately help you have better cash flow, more time and money to grow your business. To help optimise your cash flow, we are here, to help you.

For more information, please check out our website!

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