To keep their businesses operational and their client’s needs met, many companies have some or all of their employees working remotely as a result of COVID-19. The transition was a necessity and happened quickly with the intention that it was just temporary. However, here we are months later and many of us are still working from home. This has led to many business owners wondering if it’s time to make the transition to a remote workplace a permanent one. There are benefits and challenges for both the employer and employee.
Buffer’s 2019 State of Remote Report found that 40% of people felt that a flexible schedule was their top pick when it came to the benefits of working remotely. Working from home allows employees to have a better work-life balance. There is more time for taking care of personal responsibilities and hanging out with family and friends. This is a huge happiness factor for remote workers. This flexibility also allows individuals to work when they are most productive. For some, this could be early in the morning and for others late at night.
While some aspects of your business may require sometimes employees to be available at certain hours, wouldn’t you want them to spend most of their working hours during the times when they are most productive? Many employers have seen an increase in productivity since transitioning to remote work. Rotating which employees need to be virtually available during traditional business hours can provide all employees with the benefits of a flexible schedule and provide employers with a more productive workforce.
According to Atlassian, 76% of people prefer to avoid their office completely when they need to concentrate on a project. For many people, working from home allows them to really focus on their work. Office conversations, coffee breaks, spontaneous meetings – all of these can derail a person’s concentration. Although avoiding distractions at home might be a challenge while the whole family is sheltering in place, the majority of people are again finding that working remotely allows them to be more productive. This translates into a win for both the employer and employee.
Although the cost of renting commercial office space varies by geographical location, it is still one of the largest operating expenses for a business. Companies that can go completely remote will significantly reduce their overhead expenses. Not only will they eliminate the cost of renting the office but they will also avoid other associated expenses such as maintenance and insurance.
Allowing employees to work remotely greatly expands the talent pool when it comes time to hire new employees. A long commute will no longer cause you to lose out on the ideal candidate. Across the state, country, or on the other side of the world, location is no longer a barrier against hiring the most qualified candidates.
While working remotely does provide a lot of positives for both the employer and their employees, it’s not without a few challenges. At the top of that list is communication. Direct personal communication is all but eliminated. Project management requires more oversight since you can’t just lean over and ask your coworker what the status of a project is. And remember those coffee break conversations? They often relayed relevant project-related information that can slip through the cracks when working remotely.
It’s important for employers to understand that all of their employees may not make the transition successfully. While an overall increase in productivity seems to be the general consensus, some individuals aren’t self-disciplined enough to work remotely. Although there are various types of tracking software to oversee productivity, they can be a double-edged sword. They may help keep less disciplined employees motivated, however, invasive tracking software can breed mistrust throughout your organization and lead to the majority of your workforce feeling badgered or harassed. When transitioning to a remote workforce, employers need to find the right balance between oversight and trust.
While it can be a great option for many businesses, successfully transitioning to a permanent remote workforce will require initiating new policies and procedures. Developing and implementing these takes time and time is money. It can also involve new business equipment or technology, new hires, and additional training. So even though business owners will save money in the long run, they will still have to deal with some unexpected upfront expenses when going remote.
CapFlow Funding Group may be able to help. We offer invoice factoring and merchant cash advances and are dedicated to providing the short-term working capital you need to successfully transition to a remote workforce. We will work with you to find the best funding solution for your business.
CapFlow Funding Group specializes in factoring and merchant cash advances. We also work with trusted partners to provide other alternative financing options that may be better suited to our clients’ business needs. We service many different industries with a variety of funding needs. Contact us today and find out how invoice factoring can help grow your small business.
Starting a small business is a dream come true for some Americans. Maintaining a small business, however, has proven to be an enormous challenge for many entrepreneurs. Buying inventory, hiring reliable staff, building a brand, and developing a customer base can cause cash flow problems. These cash flow problems can lead to business owners incurring sizable amounts of debt and ultimately hurt their credit scores. Getting a bank loan to help relieve the weight of the debt and provide an influx of cash to invest in the business is a lengthy process that requires a nearly pristine credit score. Luckily for struggling businesses, alternative finance options exist. There are many advantages of invoice factoring, as opposed to a bank loan, for a small business.
Invoice factoring is a viable alternative finance solution because it does not require taking on any additional debt. Invoice factoring allows a business owner to sell outstanding invoices to a factoring company at a slight discount. Choosing this option will give you an immediate influx of cash to invest in your business however you see fit. One of the many advantages of invoice factoring is the flexibility it affords business owners. The more invoices you factor, the more consistent your cash flow will be for your business. The more consistent your cash flow is, the better your business will be overall.
Unlike bank loans, the approval process for invoice factoring is quick and relatively painless. This is because being approved for an invoice factoring advance does not include a lengthy list of criteria that a business owner must meet. Of the various advantages of invoice factoring, high approval rates are one of the most attractive.
Invoice factoring is not a loan, it’s a cash advance on debts already owed to you. As a result, most factoring companies do not have to put much weight on the business owner’s loan history or credit score. Invoice factoring also doesn’t require collateral in the form of real estate or expensive equipment, as the business’ invoices already act as collateral for the advance.
Generally, most factoring companies will look at the payment histories of your customers. This is so that they can get a thorough understanding of what kind of debt they would be taking on and how reliable your customers are repaying what they owe.
Some customers pay as soon as they receive the invoice but others wait until the last minute. Uncertainty is the reality of business. Not only can slow repayment cause cash flow problems for some businesses, following up with customers to ensure payment is frustrating and time-consuming.
Aside from immediate cash flow, one of the main advantages of invoice factoring is allowing you the ability to outsource uncomfortable follow-up calls. When you sell your invoices to a factoring company, they automatically take on the burden of contacting customers to make sure they receive the money they are owed. Lifting the weight of such a stressful task off your shoulders will allow you to breathe a little easier, focus on running your business day-to-day and ultimately become a better business owner.
Though bank loans are a popular choice for fixing cash flow problems, there are many more advantages of invoice factoring for business owners. CapFlow Funding specializes in invoice factoring and other alternative financing options for small and medium-sized businesses. If you are a business owner struggling with the recent impact of COVID-19, please contact us today to learn how we can help you get back on your feet.
