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Success and Cash Flow Management Strategies of a Payment Company
The success of the payment company in Sweden was driven by consumer trust and security, offering a centralized and secure platform for payments. The company quickly achieved profitability by offering a factoring model where merchants sold account receivables for a fee, allowing the company to manage the cash flow effectively. Most merchants were more concerned about risk and administration than cash flow, enabling the company to balance cash flows by delaying merchant payments and benefiting from early consumer payments. This unique approach allowed the company to scale without raising additional capital, showcasing an entrepreneurial insight into managing cash flow in the payment industry.