Business owners across the country are putting everything they have into keeping their businesses going during the COVID-19 outbreak. For some, no matter how hard they try to keep money coming in, it won’t be enough. Despite efforts by the government to offer relief through forgivable loans and other programs, many businesses—small and large alike—continue to suffer. At AA Bankers, we want to help businesses find the funding solutions they need to survive, solutions like invoice factoring.
Don’t wait to take action to save your business from becoming a statistic. Here are four ways you can protect your business’s finances during the coronavirus pandemic.
Improve Cash Flow with Invoice Factoring
Even though some states are starting to ease lockdown restrictions and drop stay-at-home orders, many places of business still have a cash flow problem. It is safest to assume that even when states open back up completely that things will still be slower than usual.
On the other hand, a few industries are seeing a surge in demand, even as social distancing brings others to a near standstill. For healthcare and food supply, for instance, demand has increased to levels that are difficult to meet without the necessary funding for large purchase orders and other essential costs.
For both of these situations, invoice factoring can help keep things running without leading to more debt. Whether you need capital to survive until you can reopen or need an influx of cash to continue growing as demand spikes, factoring your invoices is a low-risk, high-reward solution.
Here are some other tips for surviving the pandemic.
Lower Your Operating Costs
For operations that have seen their revenue streams dry up, lowering operating costs should be the first step toward financial stability. Look for ways to reduce spending, whether that means putting off purchases for new equipment or finding less expensive suppliers.
Offer Your Employees Flexibility
Many people are working from home to reduce the risk of infection. For any roles that are possible to continue remotely, it’s best to allow workers to stay at home. Offering employees flexibility can also save money on overhead costs.
Plan for Disruptions
Right now, everything is disrupted, but further disruptions are possible. For instance, supply chains, as we have seen, can quickly break down, leaving businesses to scramble for new ways of getting certain products. Alternatively, employees may get sick and be unable to complete their tasks. It’s best to have contingency plans in place. Try to find alternative products in case your suppliers can’t meet your demands and cross-train your employees in case of extended absences.
Learn More about Invoice Factoring
To learn more about how invoice factoring can keep your business going during this critical time, contact AA Bankers today. We understand the hardships that many businesses are experiencing during the pandemic and are still offering funding. Get in touch with us today to speak with one of our financial professionals.