These are obviously difficult times for many and we at C2C Resources would like to extend our deepest sympathies to those have been affected by the coronavirus pandemic. We encourage every business and person to adhere to state, federal, and CDC guidelines in order to ensure everyone stays safe during this time.
Obviously, the health of your employees comes first, but the economic shock of the coronavirus is also something on the top of any business owner’s mind right now. The Senate recently passed a more than $2 trillion relief package and the House is expected to vote on it later in the week. It will then go to President Trump to sign and at that point, the funds will begin o be dispersed. While this bill could help both your business and your customers, it is important to remember that there are steps you can take right now to help your business. Here is our advice on how you can manage your account receivables during this complicated time.
Understand the Affect on each Industry
The economic shock of quarantining measures are not distributed equally. Some industries are actually seeing increases in sales as consumer behavior and priorities shift. On the other end of the spectrum, many businesses are being forced to close for unknown amounts of time. In the middle, there are those who are carrying along as usual with minimal to no effect from the virus. Your company and all of the companies you do business with fall somewhere on this spectrum and it is important to know where everyone stands.
If your sales are improving or even staying flat, we highly recommend that you work with any of your customers who are experiencing a downturn. This will serve to strengthen your customer relationships. Not only that, but it is in your best interest for your customers to stay in business. This does not mean that you should give everything away for free. By talking to your customers though, you may be able to come up with a plan. This could mean deferring payments, increasing credit terms, or anything else that can help them make it through these tough times. It is always important to help when you can, for you never know what the future may hold.
If you are a business who is experiencing a downturn or closure, it is even more important to work with your customers. Some of them may be doing well and are able to help you during these times. Others may be in the same boat as you. In this case, they may not be able to pay what they owe you. This is something you may have to accept. Demanding money that simply does not exist will get you nowhere. Yet, by reaching out you may be able to find a solution that tides both businesses over until the virus is under control.
Opportunities to get help
In the end, your business may need help to get through these times. With large portions of the nation under stay at home orders, this is very understandable. Here are some options to consider.
Cash flow is something on the top of every business owner’s mind right now. Offering gift cards to your customers is a perfect way to help. Kabbage, a small business lender, recently set up a site that allows small businesses to create and offer e-gift cards to customers. This could allow businesses to make up for lost revenue and tide them over until economic conditions improve. If your customers are in the B2C space, this could be a great suggestion for them to raise funds.
Federal and State Programs
While these programs are sure to increase with the passing of the federal relief bill, here is a great article on some of the possible state and federal programs available to small businesses currently. Once the relief bill is signed into law, federal assistance will increase dramatically and we highly recommend you look into how this may help both you and your customer’s businesses. In the end, though, you may find this aid is not enough or that you do not qualify. In this case, we recommend looking at getting a business loan to tide your company over.
Many lenders and banks have been offering discounted loans for small businesses affected by the coronavirus. Here is a great website to help you find these offers and see if you qualify.
These are uncertain times from both a health and economic point of view, but it is important to remember that it will be far easy to get through this if you remember that everyone is on the same team. Working with your customers is and will always be the best way to make it through tough times.