Manufacturers often operate on tight margins and deal with fluctuating demand. They need to manage inventory, handle machinery maintenance, and ensure timely delivery of products. Cash flow becomes crucial, especially when they receive large orders that require immediate procurement of raw materials.
A manufacturer lands a significant contract to produce a new line of products. To fulfil this order, they need to purchase a substantial amount of raw materials and possibly even upgrade some machinery. However, the payment terms for the contract are net-60 days, and the manufacturer doesn't have the immediate liquidity to cover these upfront costs. The implications are severe:
Missed Opportunities
Without the necessary funds, the manufacturer risks not fulfilling the order on time, leading to potential contract breaches and lost future business.
Reputational Damage
Delays in production can tarnish the manufacturer's reputation, making it harder to secure future contracts.
Financial Strain
The inability to manage cash flow effectively can lead to financial instability, affecting other aspects of the business, from payroll to routine operational costs.
The Solution
Manufacturers needs a financial solution that allows them to access funds quickly, without the lengthy approval processes or collateral requirements of traditional banks.
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With PlayterPay, Manufacturers can split various invoices to address their immediate needs.
Raw Materials Invoice
Instead of paying a hefty sum upfront for raw materials, they can split the invoice into manageable monthly payments, ensuring they have the necessary materials to start production.
Machinery Upgrade Invoice
If machinery upgrades are needed, the manufacturer can spread out this cost, ensuring they have the latest equipment to meet the order's requirements without straining their finances.
Supplier Invoices
For any additional components or parts sourced from other suppliers, the manufacturer can use PlayterPay to manage these costs over time, ensuring timely procurement and production continuity.
PlayterPaid offers manufacturers a unique advantage when dealing with their B2B customers.
Improved Cash Flow
By invoicing their B2B customers through PlayterPaid, manufacturers can offer flexible payment terms, allowing their customers to spread the cost over several months. Meanwhile, the manufacturer receives the full payment upfront, ensuring consistent cash flow.
Competitive Edge
Offering flexible payment terms can be a unique selling proposition, helping manufacturers stand out in a competitive market and secure more contracts.
Always have options
PlayterPaid allows you to choose which customers are able to access flexible payment terms, meaning you can pick and choose to your preference.
Get started with Playter
By leveraging both PlayterPay and PlayterPaid, manufacturers can navigate financial challenges, maintain a steady cash flow, fulfill large orders, and continue to grow their business without financial constraints.
