3 ways to secure purchasing power

Your company has big goals, and you’ve also got some pressing day-to-day challenges to deal with. How can you keep up with rising prices while also affording top talent? How can you keep cash flowing efficiently when the goods you need are moving slowly through the supply chain? The answer is purchasing power, and you might have more access to it than you think.

At its most basic level, purchasing power refers to a company’s ability to buy the goods and services it needs. That includes everything from sourcing raw materials and paying employees to securing transportation for finished products.

Why is purchasing power important?

Purchasing power is essential for companies of any size and in any industry to maintain and grow their businesses. And in a time of increased costs and supply chain challenges, having ready access to cash has become more important than ever to manage expenses, stay competitive and prepare for what’s ahead.

Businesses looking to increase their purchasing power may want to consider three key tips:

1. Take advantage of modern payment options 

The new cashless environment has brought unprecedented speed and security to accounts payable. Given the ability to send just-in-time payments electronically, companies now have the power to keep more of their money longer. While some businesses may be slow to switch up existing processes, failing to evolve payments could significantly dampen the ability to keep cash on hand.

2. Make the most of monthly expenses

Purchasing cards may have once been an “extra” for businesses, but today they’re an essential tool that delivers control and reporting. They give companies the ability to stretch out payments – with a gap between the transaction date and payment due date – and most offer cash back. For small businesses, credit lines may be surprisingly high, giving companies the ability to charge thousands of dollars each month. A quick calculation of the cash-back potential just for recurring monthly bills, not to mention supplies and other purchases, reveals an easy way companies could make substantially more money without increasing sales.

3. Look to trusted consultants 

To be successful, companies must have attorneys, CPAs, bankers and other experts they trust – and be open to change. Companies should look to the people who play an advisory role in their business to offer experience and insights, including advice that may help them strengthen purchasing power. While digital tools now make applying for credit cards or loans easy, it’s important not to dismiss the value of a consultative approach. An ongoing relationship with a trusted banker can not only guide businesses toward a positive outcome but also help them determine when other options that protect their credit may be a better fit.

Business Card Consultants at U.S. Bank offer a concierge service that extends from an initial analysis to ongoing consultation as your business needs evolve. Contact us to learn more.

Learn about U.S. Bank

Related content

Evaluating interest rate risk creating risk management strategy

At your service: outsourcing loan agency work

Overcoming high interest rates: Getting your homeownership goals back on track

Everything you need to know about consolidating debts

Strengthen your brand with modern POS technology

Unexpected expenses: 5 small business costs to know and how to finance them

What you should know about buying a car

Is it the right time to refinance your mortgage?

6 questions to ask before buying a new home

What is a home equity line of credit (HELOC) and what can it be used for?

Your financial aid guide: What are your options?

3 awkward situations Zelle can help avoid

Maximizing your infrastructure finance project with a full suite trustee and agent

8 steps to take before you buy a home

What to know when buying a home with your significant other

How you can take advantage of low mortgage rates

What’s your financial IQ? Game-night edition

Tips for realtors to help clients get their homeownership goals back on track

Common unexpected expenses and three ways to pay for them

Myths vs. facts about savings account interest rates

How do interest rates work?

7 steps to keep your personal and business finances separate

What you need to know before buying a new or used car

3 ways to secure purchasing power

Housing market trends and relocation impact

An investor’s guide to marketplace lending

What is a CLO?

Beyond Mars, AeroVironment’s earthly expansion fueled by U.S. Bank

ABL mythbusters: The truth about asset-based lending

Collateral options for ABL: What’s eligible, what’s not?

Can ABL options fuel your business — and keep it running?

Evaluating interest rate risk creating risk management strategy

Payment industry trends that are the future of POS

Tech lifecycle refresh: A tale of two philosophies

Changes in credit reporting and what it means for homebuyers

4 benefits of independent loan agents

Middle-market direct lending: Obstacles and opportunities

Staying organized when taking payments

How to identify what technology is needed for your small business

How to fund your business without using 401(k) savings

Costs to consider when starting a business

How small business owners can budget for the holiday season

4 small business trends that could change the way you work

Webinar: Leading through uncertainty: CFO Insights Executive Roundtable

7 uncommon recruiting strategies that you may not have tried yet

How increased supply chain visibility can combat disruptors

6 common financial mistakes made by dentists (and how to avoid them)

Technology strategies to complement your business plan

Business credit card support

Business credit card 101

Meet your business credit card support team

How to apply for a business credit card

What kind of credit card does my small business need?

Do I need a credit card for my small business?

How jumbo loans can help home buyers and your builder business

When to consider switching banks for your business

How to choose the right business checking account

5 tips to help you land a small business loan

5 questions business owners need to consider before taking out a loan

Leverage credit wisely to plug business cash flow gaps

How to establish your business credit score

The essential business tips for tax deductions

How to make the most of your business loan

Do you need a business equipment loan?

Break free from cash flow management constraints

5 tips for managing your business cash flow

How Everyday Funding can improve cash flow

Student checklist: Preparing for college

The A to Z’s of college loan terms

Co-signing 101: Applying for a loan with co-borrower

Practical money skills and financial tips for college students

How I did it: Paid off student loans

Personal loans first-timer's guide: 7 questions to ask

Is a home equity loan for college the right choice for your student

Parent checklist: Preparing for college

How to apply for federal student aid through the FAFSA

What to consider before taking out a student loan

Are you ready to restart your federal student loan payments?

How to use debt to build wealth

What’s a subordination agreement, and why does it matter?

Understanding the true cost of borrowing: What is amortization, and why does it matter?

Your quick guide to loans and obtaining credit

Dear Money Mentor: How do I begin paying off credit card debt?

Dear Money Mentor: What is cash-out refinancing and is it right for you?

What are conforming loan limits and why are they increasing

Money Moments: How to finance a home addition

These small home improvement projects offer big returns on investment

Should you get a home equity loan or a home equity line of credit?

Mortgage basics: What’s the difference between interest rate and annual percentage rate?

Is a home equity line of credit (HELOC) right for you?

How to use your home equity to finance home improvements

How do I prequalify for a mortgage?

Can you take advantage of the dead equity in your home?

4 questions to ask before you buy an investment property

10 uses for a home equity loan

Test your loan savvy

Take the stress out of buying your teen a car

Questions to ask before buying a car

How to choose the best car loan for you

Disclosures

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.