By Everson Luhanga
- Customers often wait up to two months to pay for software while suppliers want their money at the very start.
- Cloud on Demand and Lulapay have teamed up to give approved small businesses thirty extra days to pay their bills.
Small technology businesses across South Africa are fighting to stay open. Customers are taking too long to pay their bills.
Many small companies sell computer software and internet services to their customers every month. The companies who supply this software want their money straight away.
But customers often take up to two months to pay for what they use. This means small business owners run out of cash to keep their doors open.
Now, a new partnership wants to help these small businesses keep their money flowing. Cloud distributor Cloud on Demand has teamed up with a payment company called Lulapay.
They give approved businesses an extra 30 days to pay their suppliers. Lulapay added this option straight into the system these small businesses already use to buy software.
Jordan Gosling from Lulapay said the way people pay for software causes problems for small businesses.
“South Africa’s small and medium technology sector is growing rapidly, but subscription models have fundamentally changed how cash moves through these businesses,” he said.
He said many businesses look as if they are making money. But they still struggle to pay their monthly bills because the cash arrives too late.
Instead of going to a bank for a loan, businesses can now use the new platform to wait until their customers pay them first.
Anthony Roberts from Cloud on Demand said the plan will help partners survive and get bigger.
“This partnership with Lulapay is about more than payments. It’s about empowering our partners to grow by unlocking additional working capital,” he said.
Both companies said flexible payment plans are needed to help businesses survive the high cost of running a company in South Africa.
Pictured above: Small technology businesses are battling cash flow pressure as customers delay payments while suppliers demand money every month.
Image source: Pexels
