Reach us at : support@hylo.biz India | UAE

Working capital challenges that SMEs can tackle through automation

Irrespective of the industry it operates, maintaining profitability and managing working capital efficiently are important for every SME business to survive and gain competitive advantage.

SMEs face multiple challenges while managing their working capital. Managing financial detail, tracking financial transactions and reports, managing receivables and payables, managing invoices, payments, and collections manually are just tedious and quite difficult to maintain with limited resources. The businesses often fail to monitor its cash flow and suffer loss. However, they need cash to meet operational expenses and deal with short term debts.  


Working capital= current assets- current liabilities

Currents assets examples: accounts receivables, inventory, investment, cash in hand

Current liabilities examples: operational expenses and debt payments


Are the banks and NBFCs able to directly serve the working capital needs of the SMEs? With the digital disruption, the millennials in SME industry feel, that there is a need for better digital banking tools for easy and faster access to capital.

How do the fintech or the financial technology companies automate and improve SME working capital management and play a pivotal role between SMEs and traditional financial institutions? Let us deep dive.

Why is it important for SMEs to maintain Working capital efficiently?

  • To pay out wages/ salaries
  • To pay for the overheads
  • To pay out to suppliers on time and procure raw materials
  • To balance between production and demand
  • To ensure cash liquidity
  • To generate goodwill

Working capital challenges faced by SMEs

Many businesses even today work in silos which affect their efficiency. Again, difficulty of ERP and Bank account integrations due to lack of resources and technological support hampers the health of most SME businesses.

Some of the common working capital challenges are as below

  • Weak economic base and limited resources
  • Hurdles in managing tedious reconciliation process
  • Manual tracking and monitoring of accounts receivables and accounts payables
  • Balance sheet mismanagement
  • Handling multiple payment gateways, multiple ERPs, and accounts
  • Chasing invoices manually
  • Payment and collections delays
  • Lack of visibility of real time cash flow
  • Cash flow forecasting
  • Obtaining access to financing from traditional banks

How can automation help SMEs tackle working capital challenges?

  • High Return on Investment due to accurate tracking of transactions and proper analysis
  • Scope for expenditure analysis resulting in efficient planning
  • Businesses can estimate the requirements of working capital and can enjoy positive working capital
  • Perfect management of stocks/inventory helps generate liquid cash

Suggested read:

Hylobiz- a Fintech start up catching the eyes of small businesses and corporates!

With digital disruption and modern tools, the fintech industry is streamlining the processes of SME businesses and supporting their cash flow needs.

However, the SMEs, corporates and the entire supply chain needs networking, automation, and access to finance and loans. Hylobiz through personalization, technological innovation and through automation is adept at boosting the health of not just a specific business but the entire B2B value chain in any industry. Sign up for free.

Connected ERP and connected banking facilities on Hylobiz strengthen SME businesses with the pillars of automation. With connected ERP and connected banking you can track financial data and transactions accurately and get a real time view of the receivables and payables.

  • SMEs/ Corporate businesses can link their existing bank account and existing ERP/ accounting software with Hylobiz seamlessly enabling you to get real time view of cash flow.
  • Hylobiz is in partnership with multiple banks and NBFCs and is pre integrated with multiple ERP partners. This ensures quick settlement and automated reconciliation on real time.

Suggested read

Working capital automated with Hylobiz

  1. Business health score, real time dashboard, automated reconciliations, quick settlement, and automated reports available on Hylobiz one stop solution enable businesses to access their business-critical information at fingertips enabling them to analyse and structure long term plans.
  2. SMEs can transact (get paid and pay out) anytime anywhere over Hylobiz mobile app over an in-built Soft-POS for card / QR acceptance. The automation of accounts payable enables you to schedule a payment and payout (single/bulk) without delay.
  3. You can create/upload branded invoices and send out through WhatsApp, SMS and Hylobiz chat option and get paid through payment collection links in multiple payment modes. You may collect a fixed amount from multiple customers with static payment links.
  4. The automated reports enable you to collect payments faster without a miss or a delay.
  5. Hylobiz enables you to manage the inventories digitally facilitating in efficient stock management, ensure cash flow and better operational efficiency.
  6. The Hylobiz API offers business loans, utility pay outs, insurances and many more to support SMEs financially.
  7. The real time dashboard and automated reports tracks accounts receivable (outstanding invoices) accurately which acts as a collateral for loans. Through invoice discounting, you may avail loans from any bank or from our partner banks. Bajaj finance and Neogrowth Credit Pvt Ltd in lending partnership with Hylobiz offers faster, cheaper, and easier SME working capital loans to businesses.

Click here to avail loans from Bajaj Finserv.

So why wait in automating payments, collections, invoices, and a lot more with Hylobiz? Quicker you decide to automate your business and accounting process with Hylobiz, quicker you tackle the working capital challenges to unlock a highly profitable SME business profile.

Connect with us at support@hylo.biz.

Leave a Reply