Overcoming the cash-on-hand hurdle

{Sponsored} Imagine your top-selling item has sold out. Imagine that you also just maxed out your store credit card and won’t be able to make a payment right away. Imagine your cash flow is held up in orders that you’ll receive at a to-be-determined point in the future and your long-term suppliers are also unable to provide the product with a promise-to-pay. Imagine your customers are asking for the product you don’t have on the shelf. What do you do?

Every independent gift shop has been in this position before. Unfortunately, it might even be something that happens regularly. But when suppliers need to be paid immediately and independent gift shops need to pay over time, who gets priority?

Enter Fundbox.

Fundbox pays approved suppliers within 2 days after a transaction is captured while at the same time providing net terms to approved buyers. This allows retailers to sell the stock and then use those profits to pay Fundbox while keeping that supplier-shop relationship healthy. Fundbox is designed to unlock cash flow normally tied up in net terms for suppliers, and for retailers, Fundbox helps to increase purchasing power while providing more flexibility in payment terms.

Fundbox isn’t a credit card. Instead, Fundbox provides access to a revolving line of business credit with net-60 terms for approved applicants. For merchants (sellers) the company’s fees are comparable to a credit card transaction fee without decline issues like credit cards tend to have. And, as long as the retailer pays Fundbox within 60 days, the retailer won’t have any fees. The flexibility can even be extended in some states up to 52 weeks for a flat weekly fee.

“All the seller has to do is log in and build an order and the retailer, if approved, can simply use Fundbox to place the order and automatically get net-60 terms — up to whatever limit Fundbox gives them. Then the retailer makes payments directly to Fundbox,” said Greg Powell, Head of Brand and Product Marketing at Fundbox.

The Fundbox Story

Fundbox was founded in 2013 to help small-to-medium businesses free up their cash from the accounts payable and receivable departments so that they can buy what they need when they need it, regardless of cash on hand. The problem is widespread and much bigger than retailers think. According to a Fundbox survey conducted in 2016, the company estimates that small businesses face a staggering $825 billion in cash held up in the accounts receivable process. If enterprise is included, that number jumps to over $1 trillion.

For the last six years, Fundbox has utilized machine learning algorithms and refined them; those algorithms can quickly inform a credit decision, allowing the right amount of credit to be provided to the right retailers.

As a bonus, Fundbox is now built right into Brandwise, the platform of choice for many sellers. Fundbox makes the application process simple and if buyers are approved their Brandwise account will display an icon, letting sellers know that the buyer is approved to use Fundbox. After that, it’s a no-brainer for all parties involved. “The seller is going to want to use Fundbox since the payment is guaranteed. The buyer will also want to since they get net terms and don’t have the fees associated with credit cards,” Powell said.

Getting Started

Buyers are encouraged to apply prior to attending summer markets. “Gift buyers will go in knowing they can get net terms on purchases. The credit decision can take just a few minutes if a bank account is connected during the application process. Some may want to submit bank statements, which takes longer,” Powell said.

“By working with Fundbox, our goal is to provide Brandwise suppliers and agencies with a competitive edge by allowing them to qualify and then transact faster with their customers,” said Todd Litzman, President and CEO of Brandwise. “Retailers will benefit through extended terms and additional access to working capital. We believe that Fundbox can be a true growth catalyst no matter if your company is a supplier, agency, or retailer.”

To get started, visit fundbox.com/bw-retailer.

© 2019 Fundbox