Can You Grow Without Taking on More Risk?
For every small and mid-sized supplier in Asia, growth feels like a double-edged sword. Larger orders, new customers, and access to global markets sound exciting. But with them comes the fear of late payments, long credit terms, and buyers who demand more than just quality products.
So here is the big question: can you grow your business without adding more risk to your plate?
The Trade-Off Most Suppliers Face
Many SMEs still rely on advance payment, cash against documents, or letters of credit to keep cash flow steady. These methods are safe, but they limit opportunities. Few buyers want to pay upfront, and many large international importers simply refuse.
Research shows that exporters who are unwilling to extend credit risk losing sales to competitors who will. Buyers often press for open account terms of 30, 60, or even 90 days. In fact, in most markets, offering open account is not just attractive, it is expected.
Yet offering credit terms feels dangerous. Waiting months for payment can strain working capital. Worse, a buyer default could wipe out months of effort. This is why many SMEs see growth and risk as inseparable.
What Buyers Really Want
From the buyer’s side, the equation looks different. They want time to pay because it supports their own cash flow. Suppliers who give them this flexibility are more likely to:
-
Win larger orders
-
Become repeat partners
-
Earn loyalty over time
Payment terms can tip the scales. If two suppliers offer the same product at the same price, the one offering 60-day terms is often the one who secures the contract.
Breaking the Growth-Risk Cycle
This is where receivables financing changes the story. By selling your invoices to a finance partner, you can receive up to 90 percent of the value within days. When the buyer pays later, the balance is passed to you, minus a small fee.
What does this mean in practice?
-
You get paid almost as quickly as if it were cash upfront.
-
You can offer your buyer the open account terms they want.
-
In non-recourse arrangements, the finance partner even takes on the risk of default.
In other words, you unlock growth opportunities without the usual trade-off. You are not forced to choose between safety and expansion.
Growth Without Fear
For a textile exporter in Bangladesh or a spice producer in Sri Lanka, the pattern is clear. Staying with advance payment ensures security, but it caps growth. Shifting to open account without support is risky. But combining open account with receivables financing opens doors.
It allows you to bid for larger contracts, secure repeat business, and compete with suppliers worldwide. All while keeping cash flow strong and risk contained.
Time to Reflect
Ask yourself:
-
Are you turning away bigger buyers because you cannot offer credit terms?
-
Is your competitor winning contracts because they give buyers the flexibility you do not?
-
What would growth look like if you had both security and opportunity?
A New Way Forward
Yes, you can grow without taking on more risk. But it requires rethinking old habits. Advance payments might feel safe, but they could be costing you growth. Receivables financing allows you to step into open account trade with confidence. It gives you the ability to grow bigger, faster, and stronger, while still protecting your business from the very risks that once held you back.
At Convergence Capital Group, we help SMEs across Asia break the growth-risk cycle. With our receivables financing solutions, you can extend competitive terms to buyers and still get the security of fast, reliable payment.
Ready to grow without the fear of risk?
Connect with us and discover how supply chain finance can power your next stage of growth.
Previous Post Next Post
