How FinTech Companies in India are Helping Businesses Manage Their Cash Flow Efficiently

Most small and medium-sized businesses traditionally use the cash in their bank accounts to handle corporate transactions. This approach forced them to walk a tightrope between managing cash flow and taking care of business expenses. Unlike their larger counterparts, these businesses lacked access to credit lines or funding to keep the lights on without touching the cash reserves. Due to this, their cash flow was always in a precarious situation. However, things changed with the emergence of financial technology. 

A FinTech company can facilitate a favorable financial ecosystem for businesses to thrive in. Businesses of all sizes are benefitting from financial solutions and platforms that FinTech companies like Zaggle designed to help ease cash flow management.

In this blog post, we will cover how FinTech companies empower businesses to strengthen their cash flow and manage their expenses or spending efficiently.

Significance of cash flow management

Cash flow refers to a report that lays bare your financial outlook giving details like income and expenditure of capital. The difference in amount between these two presents how financially secure the business is by showing the liquidity of a company. In simple terms, cash flow is the amount that the company has after paying its dues for the period. 

With visibility into cash flow, you can assess 

• The amount of raw material that you can procure
• Capital deficit to decide if you need to take loans
• Outstanding debts and business capacity to settle them
• If the company needs investments or funds to run operations.

Cash flow management is a set of practices and processes that you implement to ensure you always have enough cash available for any planned or unplanned expenses. Companies usually seek funds or loans to handle business expenses, while keeping their cash safe in their bank accounts.

However, until FinTech companies cropped up on the scene, a majority of businesses lacked these options. Let’s see how FinTech companies have transformed the way companies approach cash flow management.

How FinTech companies help in cash flow management

FinTech companies like Zaggle disrupted the banking and financial services domain by democratizing financial solutions. It marked a new dawn for businesses that struggled with cash flow management for decades. They introduced several digital solutions and services to ensure access to technology for businesses at an affordable price.

Automating cash flow management for efficiency

For the longest time, businesses relied on spreadsheets and pen-and-paper processes to calculate cash flow. It created quite a few complexities like delays in vendor payments, incorrect invoice details, and so on. FinTech companies, however, built automation platforms that allow companies to modernize their cash flow management. It allowed finance leaders to streamline their account payables and receivables workflow for greater efficiency. Using AI technology like OCR, these tools ensure invoice data is accurately captured for further processing. It not only reduces operational costs and resources but also allows companies greater control over their cash flow.

Better visibility into cash flow details

By automating cash flow management, businesses get comprehensive visibility into the financial stance of the company. It gives a real-time account of how stable their cash flow is by harmonizing data from multiple sources. It essentially forms a centralized data hub so that key stakeholders can generate reports and analytics to distill insights from the same. It empowered companies to evaluate cash flow trends, spending patterns, and irregularities, if any. Companies also learn areas where they need to optimize budgets and identify cost-saving opportunities.

Minimize fraudulent transactions with AI

Traditional cash flow management processes are cumbersome and chaotic, which exposes your operations to fraud. Notorious elements can exploit the manual processes either by duplicate invoices, inflated quotations, or fake receipts. FinTech companies, however, help companies become smart in rooting out such irregularities. For example, Zaggle Zoyer – which is an accounts payable software – verifies every invoice with purchase order to avoid wrongful payments.

Zaggle leading the transformation of SMEs

FinTech companies have emerged as saviours for companies, especially SMEs by making a wide range of financial solutions available. Interestingly, companies don’t have to subscribe to the complete tech stack. They can pick the automation solutions that suit their processes. Zaggle, one of the few FinTech unicorns in India, offers a buffet of FinTech solutions for every aspect of cash flow management.

• Zaggle Zoyer: Spend management and embedded finance platform
• Zaggle Save: Employee benefits solution
• Zaggle Propel: Employee and channel partner incentive management software
• Zaggle ZatiX: Integrated credit cards and spend analytics platform

Talk to our experts to see how Zaggle can help your business expand internationally.