2021 is here, and businesses are hitting the ground running, ready to overcome challenges with renewed hope and strategic thinking. The announcement of COVID-19 vaccines bolstered the marketplace, and businesses are making plans to reopen. However, there is much work to do between now and then, and some of the methods businesses used to adapt during the pandemic are now becoming mainstays as entrepreneurs work toward a more robust future.
E-Commerce is here to stay
Prior to the pandemic, e-commerce was demonstrating year-over-year growth. For obvious reasons, 2020 propelled e-commerce to the forefront. Even businesses that traditionally relied on foot traffic, such as restaurants and live entertainment venues, pivoted to the digital space to deliver products and services to customers. With vaccination and potential recovery peeking over the horizon, businesses are not eager to give up their share of the online marketplace. B2C and B2B companies are maintaining their digital presence because their clients are wary about rushing a “return to normal.” Additionally, e-commerce allows businesses to reach a wider audience and conduct transactions faster than traditional methods.
There is a greater need for working capital
As businesses make plans for the future, the need for working capital is crucial to success. While e-commerce may allow for faster sales, invoices still maintain staggered payment schedules of 30, 60, and 90 days. Even businesses that have gone completely digital still have overhead costs, and growth plans require capital. Businesses that are looking to ramp up their operations to meet the growing demand during and after recovery need to optimize cash flow and build up working capital. Unfortunately, staggered payment schedules on invoices frequently result in gaps in cash flow, and business expenditures overshadowing revenue at recurring points every month.
Making plans a reality for businesses
Boosting revenue and building up capital can be achieved easily, even for businesses that are operating in the digital space. With accounts receivable factoring from New Century Financial, businesses can exchange their unpaid invoices for cash and receive funds within 24 hours. Our factoring services do not have any hidden fees, no long-term contracts, and we give businesses control over which invoices or parts of invoices they want to factor. To get a jump start on 2021 and roll out plans for reopening and growth, contact the team at New Century Financial and ask us about our accounts receivable factoring services.