Purchase Finance for SMEs: Managing Cash Flow

1
Cost-Benefit Analysis of Purchase Finance
2
Introduction to Purchase Finance

• Definition Purchase finance is a financial
  facility that helps businesses pay for the goods
  they need to fulfill customer orders.
• Relevance for SMEs It allows SMEs to manage cash
  flow more effectively by providing immediate
  funding for purchasing inventory without
  depleting working capital.

3
Key Benefits of Purchase Finance for SMEs

• Immediate Access to Working Capital Maintain
  liquidity for operational costs.
• Cash Flow Management Align payment outflows with
  accounts receivable inflows.
• Supplier Discounts Leverage early payment to
  negotiate better terms.
• Scalability Take on larger orders with
  confidence in your financial backing.

4
Quantifying the Benefits

• Increased Sales Potential Illustrate with a bar
  chart showing growth in sales volume.
• Cost Reduction Pie chart depicting the
  percentage decrease in costs through supplier
  discounts and optimized inventory turnover.

5
Understanding the Costs

• Interest Expense Average rates applied to
  purchase finance.
• Fee Structure Common fees associated with
  purchase financing (origination fees, service
  fees, etc.).
• Comparison A table comparing these costs with
  conventional loan products.

6
Risks Involved in Purchase Finance

• Over-reliance on Debt The risk of becoming
  dependent on finance facilities.
• Market Volatility Potential impact of economic
  downturns on repayment capacity.

7
Mitigating the Risks

• Diversification Use a mix of financial
  instruments to balance risk.
• Financial Planning Employ robust financial
  forecasting to inform borrowing.

8
Real-World Applications SME Success Stories

• Success Story 1 A brief case study of an SME
  that improved their market share due to purchase
  finance.
• Success Story 2 An SME that used purchase
  finance to survive a seasonal cash crunch.

9
ROI Calculation

• Formula ROI (Net Gain from Investment - Cost
  of Investment) / Cost of Investment
• Example Present a hypothetical ROI calculation
  for an SME utilizing purchase finance.

10
Why Choose Oxyzo for Purchase Finance?

• Customization Oxyzo offers tailored financing
  solutions that fit your unique business needs.
• Competitiveness Highlight Oxyzo's competitive
  rates and flexible terms.
• Efficiency Stress the fast, transparent, and
  hassle-free application process.

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Tailored Purchase Finance Solutions for SMEs by
Oxyzo

• At Oxyzo, we understand that each SME has its
  unique financial footprint. Our purchase finance
  solutions are designed to fit the specific
  contours of your business operations, enabling
  you to capitalize on opportunities with agility
  and confidence.

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Key Features

• Customized Financing Loans structured around
  your business cycle and cash flow demands.
• Adaptable Terms Options to scale your finance as
  your business grows.
• Simplified Access Minimal documentation, fast
  processing, and a user-friendly interface.
• Strategic Support Insightful financial advice to
  align with your purchasing and growth
  strategies.Visit Oxyzo for more details-
  https//www.oxyzo.in/