The retail industry has been hit hard by the recent COVID pandemic, with many stores shutting their doors for good. Retailers have seen market forces previously unseen, leading to months of closures and shifts in consumer behavior patterns. While this epidemic is undoubtedly hurting many businesses, it does provide opportunities for those who are able to see through the chaos.

Some retailers may be feeling vulnerable because of the current economic climate and the fact that in some locations, the number of new COVID cases has begun to spike. However, for those businesses that have survived the first wave of the COVID pandemic, it is important that they take steps to align their business operations to meet customer demand in a new way. Here are some retail store recovery tips that can help you re-emerge from the cloud of COVID and have a successful retail comeback.

Imitation is the Sincerest Form of Flattery

Like it or not, there’s no denying that Amazon is a shining example of how to succeed in the shifting retail landscape. They invested heavily to ramp their distribution networks during the quarantines and social distancing resulting from COVID. Not only did this help them ride out the storm but it also helped them to secure a favorable position with consumers. Many of the consumers who shopped Amazon out of necessity continue to do so for the convenience of shopping from home and having packages delivered to their front door. All those hours spent running from store to store can now be spent doing more enjoyable activities or just relaxing.

As a small business owner, you are probably wondering how you could possibly compete with the retail giant. Mimic them – of course, but not on such a grand scale. We are not suggesting that you go out and buy a fleet of delivery vans with your company name emblazoned on them. However, you need to find a way to make it easier for the customers you served before the pandemic to return to doing business with you. Provide consumers with the ability to order online or over the phone and offer shipping, curbside pick up, or delivery. While you may not be in the position to offer a 2-hour delivery window like Instacart or Amazon’s next-day delivery, rethinking how you meet customer demand is one of the best retail store recovery tips. 

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Embrace the New Normal

Don’t look forward to things getting back to normal. Despite the overuse of the term, this is the new normal. The pandemic has impacted every aspect of our lives. Remote work and social distancing have caused shopping behaviors to change. With sweat pants and comfortable footwear now the new “work from home” attire, department store shopping has seen a decline while grocery stores have experienced a significant surge. Because consumers are spending more time at home, their needs have changed. 

In addition to making the shopping experience more convenient, retailers also need to adjust the type of goods they are offering. That’s not to say that a clothing retailer should start selling groceries. However, it may be time to rethink the type of clothing you’re offering. If you sell dressier clothing such as professional or evening attire, you may want to introduce a more casual line. Research trends in your industry and adjust your offerings accordingly.

Skip Traditional Sales Forecasting

When it comes to retail store recovery tips, you will need to rethink your sales forecasting, at least for the foreseeable future. Retailers are now faced with a dynamic and unpredictable market. Sales forecasts based on last year’s data will not be accurate because COVID changed consumers’ habits and buying preferences. Traditional models may serve as an appropriate benchmark for some things but shouldn’t be relied on to forecast future sales. Industry trends, as well as consumers’ spending habits, will provide more insight when developing a sales forecast.

 Merchant cash solutions

Retail Store Recovery Tips – Putting Them into Action

We get it. Knowing what you should do to meet the evolving customer demand is only half the battle. The other half is having enough capital to implement the necessary changes. Unfortunately, traditional business loans were difficult to get before COVID. Now it can be almost impossible. 

If your business needs an influx of capital to keep your business moving forward, alternative financing options can be a great choice. At CapFlow Funding Group, our team of professionals will evaluate your business’s unique situation and help you determine which funding option would best suit the company’s needs. We service many different industries with a variety of different funding needs. In addition to merchant cash advances and invoice factoring, we work with trusted partners to provide additional merchant funding options. Contact us today!

 

 According to the Congressional Research Center, more than 90% of the US population has some type of health insurance. While having health insurance increases the patient’s access to proper medical care, waiting on healthcare receivables can have a negative impact on the provider’s cash flow. Healthcare providers from individual physicians to large medical facilities all have to deal with disruption to their cash flow due to third-party billing. 

Medical accounts receivables

Medicare, Medicaid, and private insurance companies aren’t known for their quick turnaround times on making payments. Also, if there are any mistakes made when submitting the invoices to these third-party agencies, payment is denied. Then the provider will have to start the whole process over. The disruption to cash flow from third-party billing can strain a healthcare provider’s working capital. It can even result in a struggle to keep up with operating expenses. 

Although some banks offer loans specifically designed for healthcare providers, financing from traditional financial institutions is becoming increasingly difficult to obtain. So how can healthcare providers maintain a sufficient level of cash flow while waiting on third-party payments? Invoice factoring can be the perfect solution.

How Factoring Healthcare Receivables Works

When factoring healthcare receivables, the provider would send a copy of the outstanding invoices they want to submit to the factoring company, often referred to as the factor. The factor will purchase the invoices for 80 to 90% of their expected net collectible value. The remaining 10 to 20% is held back by the factor in case the actual third-party payment differs from the expected value or is denied. If the invoice is satisfied as submitted, the remaining balance minus the factoring fee will be sent to the healthcare provider.

Factoring Benefits

Besides allowing providers to avoid the cash flow disruption caused by the slow payment of third-party healthcare receivables, factoring also offers a few other benefits.

Predictable Cash Flow

When budgeting to cover operating expenses, it is important to know how much incoming revenue will be available. Factoring provides physicians and healthcare facilities with a predictable cash flow they can count on. This type of financing is also flexible and can increase or decrease with the fluctuation of your healthcare receivables.

Growth Opportunities

Without the long wait for third-party healthcare receivables to be paid and no disruption to their cash flow, healthcare providers will have the funds on hand to take advantage of growth opportunities. Whether it is an equipment upgrade or opening an additional facility, factoring can help keep your growth trajectory on course.

Avoid Long-Term Debt

Getting a loan to cover outstanding healthcare receivables will create long-term debt. Factoring is simply an advance on money already owed to you. It provides a short-term solution to the common cash flow disruptions created by the snail’s pace typical of third-party billing. The length of a factoring agreement can vary among providers. They typically last 2 years, whereas a bank loan will not only last 3 years or more but will also add debt to your balance sheet.

healthcare receivables financing

Invoice Factoring – The Healthcare Receivables Solution

Think factoring could be the right solution for your healthcare or medical business? Let’s talk. Capflow Funding Group specializes in factoring and will work with you to find the best funding solution to provide your business with immediate working capital. We service many different industries with a variety of different funding needs. If invoice factoring isn’t the right solution for your business, we offer merchant cash advances and work with trusted partners to provide you with the perfect funding solution for your business. Contact us today and find out how invoice factoring can help grow your small business.