Business owners all over the world watch economic indicators very carefully and keep a close eye on all of the major economies. In some instances, the relative health of the worldwide economy does not have an overbearing effect on a small to medium sized business. But when the world is gripped in a global recession, or one of the world’s economic powers is watching its economy grind to a halt, then that is when business owners start paying attention to the news and keeping track of everything that is going on.
The most difficult thing to do in a recession is stay competitive, and there are several reasons for that. The most broad-reaching reason that companies fail to compete in a global recession is the lack of funds caused by a slow down in business. But the companies that plan ahead and have contingency plans in place for funding their operations find it a little easier to stay ahead of the competition. The important thing to remember during a recession is that financial stability becomes a huge advantage, considering that the competition is mired in economic chaos.
Marketing funds are usually the first cuts made by small to medium sized business in a recession, and that is a huge mistake. The larger corporations are also cutting back on marketing, which means that they are leaving huge gaps for other companies to fill. The larger corporations are sending smaller trade show booths to the major shows and they are abandoning some shows altogether. When your company jumps on those openings, you can show significant financial strength and grab some of that market share.
The plain truth is that less marketing means less exposure. If your competition is going to pull back on marketing during a recession, then you need to put more into marketing to start climbing to the top of your industry. Your competition, even the larger companies, start to become stepping stones to your company’s future success. You can expand your brand name by taking over the marketing footholds that your competition is leaving behind. When the recession is over, you will have established yourself as an industry leader worthy of the biggest clients available.
For larger corporations, customer service to smaller clients starts to degrade during a recession. While those may be smaller clients to a larger corporation, they may be difference makers to a small to medium sized business. Most of your direct competition is not going to put the resources into chasing those smaller clients, which leaves them all for your company to scoop up. All of the calls for bids and purchase orders that other companies are not prepared to accommodate can suddenly become a whole new source of revenue for your company.
The best part about going out of your way to grab customers that get left behind in a recession is that you will keep those customers when business picks back up. You may see a small customer blossom into a major client when the recession ends and that makes all of your investment worth it. The key is to step up your sales efforts during the recession and take advantage of the poor customer service work that is being done by the other companies in your industry. A recession presents a wide array of opportunities if you have the financial stability necessary to take advantage of them.
If you look at the aging reports of small to medium sized businesses during a recession, a growing trend you will find is that the invoiced sales volume has dropped, but it is still significant enough to support operations. The problem is not the volume of sales, but rather the cash flow. In a recession, past due invoices become more common and that causes the financial shortage that you experience. It is the slowed cash flow that causes you to make decisions about marketing and sales that will not allow you to take advantage of the misery of your competition.
Funding receivables allows you to resume your cash flow and take advantage of the invoiced sales that you do have. Commerce Commercial Credit is an experienced receivables funding organization that has many resources available to help clients all over the world. We will work with you to use your approved invoices as collateral to advance you the funds you need to maintain cash flow. We will advance you the face value of your invoices, minus our fee, on or before the invoice due dates. This is the financial stability you need to take advantage of the opportunities presented by a recession.
When you utilize a receivables funding plan from Commerce Commercial Credit, you can take advantage of the huge holes in marketing that your competition is leaving behind. You can start to push your brand name into demographics that you may have had a hard time penetrating before because the larger companies had a stranglehold on those customers. Now that you have the cash flow you need thanks to Commerce Commercial Credit, you can start to attack those markets and expand your customer base.
With a reliable cash flow from Commerce Commercial Credit, you can also send out your sales force to pick up the customers that your competition is leaving behind. In a recession, large corporations routinely dump clients that could make a significant difference in your company’s bottom line. When you are funding receivables and enjoying a reliable cash flow through Commerce Commercial Credit, you will have the resources to go grab those customers and grow your company when everyone else is struggling to hang on.
When you use receivables funding through Commerce Commercial Credit, a prolonged recession becomes a huge chance for you to grow your company and set yourself up for significant growth when the recession is over. All of those investments you were able to make because of your sustained cash flow throughout the recession will pay off when the economy picks back up. You can significantly improve your status in the industry during a recession, and then emerge as an industry leader when the recession is over.
The process starts with a two page application , we have no set-up fees, no facility fees, no hidden fees, no per month minimums and no per invoice minimums. We do not need to use your company credit score to set up your account because we base our decisions on the credit scores of your clients. Within five business days, we can have your funding account set up and we can start advancing you the cash you need to stay competitive and succeed in a recession.