Small and midsize businesses (SMBs) across the U.S. are facing mounting pressure as working capital tightens. Between inflation, interest rate volatility, and extended payment cycles, even well-run companies are finding themselves in a cash flow bind. But while the problem is complex, one solution gaining traction is a strategic rethinking of operational support—particularly in collections and factoring.
Understanding the Capital Squeeze
Recent data highlights how late payments and receivables bottlenecks are contributing to the crisis. Many SMBs are seeing DSO (days sales outstanding) figures stretch well beyond 60 days, limiting their ability to invest in growth or cover immediate obligations. In industries with thin margins, this lag time can be the difference between expansion and stagnation.
Where Operational Efficiency Fits In
One of the often-overlooked levers for improving liquidity is optimizing back-office processes that directly impact cash flow. Effective collections, timely invoicing, and factoring support can accelerate receivables and improve cash conversion. When these tasks are handled with precision and consistency, businesses can gain better visibility into their financial position and free up internal resources to focus on growth.
The Outsourced Advantage
For SMBs lacking the scale to maintain in-house teams dedicated to these functions, outsourcing offers a scalable solution. Expert teams with industry-specific experience can bring structure and accountability to accounts receivable processes—reducing DSO and enhancing overall financial health. It’s not about cutting corners but rather creating a more agile and responsive support model to navigate today’s capital constraints.