This article has been adapted from the MSTS Women in Small Business: Make Your Working Capital Work For You report.

The number of small businesses owned by women continues to grow in 2020, but according to SCORE’s The Megaphone of Main Street: Women’s Entrepreneurship data report, just 5% of women entrepreneurs say their companies are experiencing aggressive expansion in size or revenue. Women in small business often excel, but achieving lasting, profound business growth can feel like the exception, not the rule.

Alarmingly, a lack of cash flow is the number one challenge businesswomen face today. In fact, a recent U.S. Chamber of Commerce survey found that “women-owned small businesses have less optimistic revenue, investment, and hiring plans compared to male-owned small businesses.”

Women entrepreneurs have worked hard to secure funding for their companies, and they know obtaining more capital is the key to scaling operations. Capital constraints or increased pressure from larger competitors shouldn’t undermine that success. Alternative payment and credit options exist to help women entrepreneurs thrive while competing with larger suppliers.

Here are three ways businesswomen can increase cash flow and avoid costly pitfalls:

• Leverage outside capital Offer payment terms to your customers to increase their spending power and average order size. Extend exclusive lines of credit, encouraging buyers to purchase more from your company instead of competitors. Look for alternative funding by partnering with a fintech company to avoid high interest rates from traditional lenders The result? Dedicate your working capital to scaling your business.
• Maximize time and resources Streamline and automate day-to-day processes by adding simple integrations to your native ecommerce platform. Outsource collections to stay on top of accounts receivable to reduce days sales outstanding (DSO) and cash flow gaps. Capitalize on business intelligence tools to make smarter decisions for your company. The result? Funnel more effort into your business’ future.
• Increase loyalty through the customer experience Offer buyers their preferred payment options, such as invoicing during an online checkout, to give customers the purchasing power they deserve. Establish an omnichannel strategy to close a deal no matter where your customer is in the buying journey. Facilitate instant onboarding to shorten the checkout process for painless purchasing experiences. The result? Ensure customer loyalty and satisfaction.

To make progress in these three areas, identify a partner who can help take strategic action and shoulder the financial risks associated with operating a small business. A lot is on the line to make smart financial decisions, especially for the 62% of women entrepreneurs who depend on their business as the primary source of income. Now is the time to remove the burden of collections and streamline payment processes with buyers in mind.

Gain financial flexibility with Alibaba.com Payment Terms. You can get up to 60 days to pay off your orders. Free up your cash flow so you can spend your dollars where they’re needed most. Learn more about Alibaba.com Payment Terms; or if you prefer the mobile experience, go here.

Global ecommerce sales are seeing massive growth, and much of this growth is due to international trade. Watch our fireside chat to hear from the experts at Alibaba.com and Zonos on how you can start scaling your global business. You can view our other fireside chats here.

Don’t get slack on invoicing. Send out invoices as soon as possible and always follow up.