People tend to pay more attention to big things and less or even totally disregard small things. Small and medium businesses form an integral part of most nation GDP. Research has shown that they have the highest rate of job creation and give the highest number of employment in most countries.
Despite these very important factors, neglect in many areas has caused very many of the SMBs to be indebted and in extreme cases liquidated. The rate at which SMBs close down or liquidate increases at a very alarming rate on a daily basis, and this happens mostly due to lack of proper financing or cash flow in the business.
Financial institutions profit more when they issue credit or loan to large businesses, which is a huge disadvantage to SMBs. Most SMBs depend on credit for the survival of their business, some others have their invoices unpaid past the due date, while some are considered ineligible for credit or loan by some financial institute and many others thrive on bills or cash given by families, friends or associates. So many people have great ideas but have little or no resource to implement these ideas.
Porter’s theory described the competitive challenges businesses are faced with. SMBs like every other business is posed with these challenges but on a slightly higher scale. The market is a very large and volatile place consisting of new entrants in various industries, lots of substitute goods and very stiff competitions from rivals. The above-mentioned factors, gives more bargaining power to both buyers and suppliers of various businesses. Therefore, SMBs are in a weak position to make bargains with suppliers, as most are stacked with debts and insufficient cash flow, hence putting them in precarious positions.
What is needed is a good intermediary or institution that will handle and automate the complex logistics and procurement process for SMBs. Shortening the procurement cycle, making sure businesses pay before the due dates to enable them maintain their trustworthiness and give credit or loans readily thereby enabling a smooth day-to-day running of operation and ensuring cash flow.
Hence the introduction of Payblok asset token by the InstaSuppy platform, which aids payments between businesses and provides financing. This is a form of upgrade on the InstaSupply platform, and it was done to completely automate the procurement system of a business to include payment and every other necessary function needed.
In other to optimize cash flow, expenses and spending needs to be controlled and well accounted for, and this platform enables its users order, track and match orders to their matching invoices and make necessary payments, all while greatly reducing the transaction time and improving accuracy.
Users of the platform (www.instasupply.com), who hold this token are entitled to special perks. Suppliers are now able to receive payment very quickly, more competitive rates are now given to users with risk fully accessed and measured, short term loan can now be easily collected using the tokens as collateral and at a very little interest rate. Discounts are also given to; users whose invoices were paid using the platform, those whose invoices were verified and paid early and users who refer others to the platform (read more).
There are many exciting functions and incentives this platform provides to its users, SMBs should take advantage of this as it offers better financing options. All being said, a business that is well financed has better chances of growth.
Useful links
https://payblok.instasupply.com/documents.html
https://payblok.instasupply.com/
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