During times of economic uncertainty, businesses in all sectors need a clear strategy to come out on top. As legislation rolls out to limit hours of service and cut back on “non-essential” businesses, there are a few things companies can do to redirect their efforts and still generate revenue.
Take Your Business Online
When there are reductions in foot traffic coming into brick-and-mortar establishments, businesses need to focus their efforts to online sales. By using websites and social media platforms, businesses can grow their presence and still offer products to customers. Freight and shipping services are still in full-swing, so clients can still receive physical goods from businesses. Service-oriented businesses may have to think outside of the box to supply deliverables to customers, even if that means placing the emphasis on gift cards, which not only gives customers something to look forward to, but generates revenue here and now.
Getting Revenue Up-to-Date
For many businesses, the concern is not just on generating revenue moving forward, but getting payments from older sales. Many businesses are currently dealing with revenue that is locked up in unpaid invoices. In an uncertain economic climate, the longer invoices go unpaid, the more businesses deplete their capital reserves, and the more likely it is that those receivables will age out to collections. To avoid cash flow issues and to get caught up-to-date on unpaid receivables, businesses use factoring services. Factoring receivables is fast and simple. If a business issues invoices with payment schedules of 30 days or more, those receivables can be converted to cash within 24 hours. This gives businesses quick access to much-needed revenue to roll out strategies to survive an uncertain economy and build up reserves. Unlike traditional loans that balance debt on the balance sheet, factoring is a simple exchange of receivables for cash, so businesses can sidestep debt and preserve their credit ratings. Factoring services are also easy to access and can be set up quickly for businesses in all industries.