Nowaccount Network Corporation Eliminates DSO Aging for Small to Medium-sized B2B Companies
Today on Midtown Business Radio we were joined by Lara Hodgson and Kim Humphreys of Nowaccount Network Corporation. In the business world, companies can encounter significant risk related to prolonged aging of their Accounts Receivable. It’s not uncommon for some businesses to have a Day Sales Outstanding of nearly 60 days. With so much capital unavailable to cover costs such as payroll, necessary production materials, and capital equipment, many companies are forced to avoid taking on larger contracts/client orders or even close their doors due to capital short-fall. Until now, B2B companies were forced to try to secure capital through onerous loans (if they could obtain one), factoring agreements (which require disclosure to all clients), and other less-than-optimal sources of funds. Service companies that provide a service versus selling goods/products can have a particularly difficult time gaining access to loans or other options due to a lack of inventory/capital equipment that could be used as collateral.
Nowaccount serves the B2B space and provides access to AR pending capital within 2-5 days for a 2.5% fee. In essence the service is akin to being able to accept a credit card for invoices. Their clients can select which of their customers’ accounts they wish to include in their program rather than requiring them to enroll ALL AR. Additionally, Nowaccount Network Corporation doesn’t force a long-term contract on their clients, giving them even greater flexibility. Nowaccount does not require disclosure to their clients’ customers of their relationship so engaging in Nowaccount’s services is completely invisible to the B2B’s customers. With access to their capital in such a timely fashion, many of the company’s clients have been able to leverage their quick access to pending AR capital into securing large contracts that would have been previously-inaccessible. Some Nowaccount customers have been able to use their newly-acquired AR Cash in hand to gain bulk buying discounts on supplies/production materials and even improved company valuation prior to selling their company. If your company is a B2B company that doesn’t have access to capital sources the Big Boys have there is no good reason to not be taking advantage of Nowaccount Network Corporation’s elegant solution to aging DSO!
- MBA Harvard Business School
- Former Adjunct Professor of Finance, Georgia Institute of Technology
- Board of Directors, Georgia Regional Transportation Authority
- Owner, Insomnia Group
- Chairman of the Board, Atlanta Heights Charter School
- Second Language–Japanese