COVID-19 has changed the way we all live and interact. But to truly make it through this crisis, businesses will need to find ways to maintain operations until the virus passes. The CDC is providing guidance to reduce the size of events and gatherings, and that carries over to the workplace. While some businesses are temporarily closing their doors or restricting hours of operation, there are some that need more robust solutions. Fortunately, there are a number of business solutions available to keep operations running and successfully make it through the COVID-19 epidemic.
Right now, businesses that have the ability to let employees work from home should do so. We live in an age where we can connect via computer, mobile devices, utilize video, and use applications to continue operations with putting clients and employees at risk. By letting employees work from home and informing your clients that business will still carry on, you provide confidence and ensure continued revenue. Businesses should also leverage social media and similar platforms to increase their presence and draw in clients who will be looking online to make purchases for the weeks and months to come.
Make Sure Receivables are Paid
Many businesses that made sales prior to the outbreak of COVID-19 are still waiting on payments from clients. Outstanding receivables may become a big issue for businesses as the epidemic continues. Businesses need access to revenue to weather this storm and implement strategies for recovery. Accounts Receivable financing is the ideal solution for converting unpaid invoices to cash so businesses can cover overhead, make payroll, and build up capital to stay well above water.
Surviving in the Service and Hospitality Industries
Hotels, restaurants, and clubs are feeling the full brunt of COVID-19. Cities throughout the country have been limiting hours and flat-out forcing closings of venues that serve as social gathering places. Many states have relief in place for people who work in the service industry , including artists and musicians who rely on those venues to make money. Business owners in the service and hospitality industries should guide employees and artists to those resources to build loyalty and ensure a returning workforce when they are allowed to reopen. This is also an opportunity for hotels, resorts, restaurants, and clubs to emphasize merchandise and gift cards to generate revenue. People like helping out local businesses, and being able to use gift cards later on for a hotel stay, a meal, or a cocktail is a great way to generate future sales.
The hospitality and service businesses also need funding to maintain leased spaces, cover overhead, recoup from lost inventory, and more. In these situations, merchant cash advances can help bridge any gaps in finances. Merchant cash advances are structured around sales history, so businesses can receive an infusion of capital to carry them through the outbreak. Merchant cash advances do not place any debt on the balance sheet, and the repayment terms are extremely flexible compared to traditional loans.
Working Capital Solutions
Another solution every business can use to get access to working capital is credit. Unsecured lines of credit are available to both new and established businesses with interest rates as low as zero percent. Unsecured lines of credit provide a reliable source of discretionary capital that businesses can use for any purpose in order to stay afloat and successfully pull through this crisis without placing a strain on finances.
Staying Safe and Staying in Business
With the solutions available, businesses can get the financing they need to stay operational and generate revenue while still keeping their employees and customers out of harm’s way. Encourage your workforce to follow the guidance offered by professionals, and to seek help if needed. Remember, while businesses may be restricted, they can still generate revenue if the owners and employees think strategically and stay as healthy and safe as possible.
Contact Optive Commercial Capital today for a free consultation about how we can help support your business needs.