Troubling news about the potential impact of the current economy on small businesses is everywhere these days, but you can't let yourself get caught like a deer in the headlights. Vince Lombardi once said, "It is time for us all to stand and cheer for the doer, the achiever-the one who recognizes the challenge and does something about it." What can you do to keep your business running during tough economic times?«
Simple: you must keep a steady stream of cash moving through your business. Fortunately, University of Virginia has introduced several innovative programs that can help its vendors save money and get paid faster.
In an effort to save natural resources as well as the expense of traditional checks, UVa is now encouraging vendors to take electronic forms of payment. The ePayables program is a process that expedites your payment by authorizing you to charge a credit card for your invoice amount, and funds are typically deposited within 1-2 business days. The PayMode program is an electronic deposit to your bank account.
How does this help your cash flow? Both methods eliminate the traditional wait for the mail, drive to the bank, and check float period in your bank, cutting valuable days from the time your money is released until the time it is in your account.
For more information about electronic payment or to sign up for ePayables, email the Payment Processor Specialists at firstname.lastname@example.org. To sign up for PayMode you may visit www.bankofamerica.com/paymode/universityofvirginia
Reduced Payment Terms
If you're already doing business with the state, you're well aware that payments are typically issued as "Net 30," which means that checks are cut 30 days from the date the good were received, or 30 days from the date a valid invoice is received in Procurement Services, whichever is later.
That can be a long wait for a small business with its own bills to pay; however, the University has just amended its vendor registration form to allow its suppliers to elect to provide a cash discount if payment is made early. Especially if combined with electronic payment, flexibility on your part can now ensure that your money will arrive in your account sooner. You may change your payment terms here: https://www.procurement.virginia.edu/main/frms/VendorReg.php
Your company's solvency depends on having enough cash to support your operation. Flexibility here is key, but as the recent economic slowdown affects more businesses, what is absolutely essential to the health of your company is a good understanding of cash flow. For more information, click here: http://www.procurement.virginia.edu/main/diversity/SWAMSources.html#CashFlow).