The COVID 19 pandemic left many small businesses struggling to stay afloat in 2020. In an effort to reduce the economic impact of the resulting business restrictions, Congress passed the CARES Act in March of 2020. An important part of the package is the Payroll Protection Program, also known as the PPP. The purpose of the PPP was to help employers keep their staff on payroll and reduce the amount of the US workforce collecting unemployment. The intention was to provide funding to help businesses survive until life returned to normal.
The initial key provisions of the PPP are as follows:
In addition to providing a lifeline for many small businesses and non-profit organizations, this funding was accompanied by the ability to have most or all of it forgiven. However, the original PPP Act wasn’t without its flaws. It lacked clarity and transparency. As the “new normal” set in, some businesses struggled to cover expenses and meet the forgiveness eligibility requirements.
One of the biggest hurdles many businesses and organizations face is compliance with the required percentage that could only be spent on payroll in order to review loan forgiveness. On June 5, 2020, the Payroll Protection Program Flexibility Act was passed. It was meant to help address that and some of the other key issues faced by those who received PPP funding and are now trying to meet the Forgiveness requirements.
The key issues addressed by the PPP Flexibility Act are as follows:
At CapFlow Funding Group, we see so many of our clients trying to navigate the complexities of the PPP Act and its seemingly constant evolution. In an effort to assist them and other business owners, we continue to update our resource center with the latest information and forms relating to the PPP Act.
While the pandemic has drastically altered the economic landscape, we will do our best to help our clients not only survive but successfully rebound in the” new normal”. Contact us to see how we might be able to help.
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.
There’s no denying that the recent pandemic has had a significant impact on many businesses. Retail businesses and restaurants were hit particularly hard. Even some of the major players took a hit. Nordstroms, Bath and Body Works, Victoria’s Secret and Starbucks have announced that multiple locations will be permanently closing. If these large companies are struggling to stay afloat, it is, of course, even harder for smaller business retailers and restaurants to ride it out and successfully reopen. After the major financial loss they suffered, merchant funding solutions are at the top of most of their reopening checklist.
However, to ensure reopening success, small businesses are going to need more than just fast working capital. They are going to have to take a long, hard look at the damage as well as their existing strategy. Retailers and restaurant owners have to position their businesses to adapt to the new normal for their industries if they plan to emerge from this victorious.
It’s important to know where you stand financially when reopening your business. Now is the perfect time to update your financials. By comparing them to last year, you will be able to accurately assess your losses. Many small retailers and restaurant owners will have either depleted their reserve of working capital or did not have enough in reserve to begin with. This means they will need to explore various merchant funding solutions. In addition to determining which is the best for your specific situation, you will also need to determine what you need to do to recoup those losses.
What worked before the pandemic, may not work after it’s been contained. Even as restrictions are being lifted, many people are wary of putting themselves out in the general public. Retailers and restaurant owners will need to rethink how they do business and which areas of their business they need to make a priority going forward.
Whether you were closed or conducting business on a significantly reduced scale, this resulted not only in lost revenue but also in lost customers. Many retail customers turned to Amazon to get what they needed. Restaurants that remained open found themselves competing with local pizzerias and fast food joints specializing in taking out and delivery. You may have to rethink how you do business to lure customers back. You may need to increase or retarget your marketing efforts and prioritize different aspects of your business. You may also need to hire new employees or retrain existing ones to effectively implement your new business plan.
Experts predict another wave of COVID-19 to hit in the fall. Even if it doesn’t happen, some other future crises could potentially derail your business. If you were prepared this time, good for you. If you weren’t, it’s time to create a contingency plan so you aren’t completely blindsided the next time. In addition to diversifying your business plan, look for ways to build up your reserve of working capital. Reduce nonessential spending or implement more efficient operating procedures. You may also want to focus on paying down debt, leaving you with fewer financial obligations should another crisis occur.
If you’re in need of a little help getting your business back on its feet, CapFlow Funding Group may be able to help. We specialize in invoice factoring and merchant cash advances (MCA). For retailers and restaurants, an MCA can be one of the best merchant funding solutions. It can provide you with the fast working capital and revenue-based repayment, without the need for a perfect credit score or taking on additional debt. We are dedicated to providing the short-term working capital you need to rebuild your business and will work with you to find the best funding option.
CapFlow also works with trusted partners to provide other merchant funding solutions 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.
The business lockdown that resulted from the recent pandemic has shifted the focus of many brick and mortar retailers to the online marketplace. Branching out into eCommerce offers numerous benefits that can help you expand your business. However, the already crowded online marketplace is more over-populated than ever. In order to succeed, you have to find a way to stand out from the crowd and remain competitive. You may feel like the products you’re offering are unique but remember, you’ll be going up against online retailers like Amazon, where you can buy almost anything or websites like Etsy that specializes in unique products. That doesn’t mean success in the online marketplace is impossible. There are things you can do to help set you apart from the competition.
You may be selling products similar to what other online retailers are offering. This is where you need to get creative. You may be selling shoes but so are companies like Zappos. They carry just about every brand and type of shoe made, making them tough to beat. One way to succeed in online retail is to have a specialty. Instead of simply marketing your business as an online shoe store, target a specific audience. Maybe you specialize in women’s high heels or men’s work shoes. Once you identify your specialty, you can use it to increase your search engine ranking as well. Potential customers will often type in the specific kind of shoe they are looking for when they search.
Because the online marketplace is so crowded, it’s important to keep your eye on the competition. It’s especially important to know what they’re charging for items you both carry. If possible, make your prices lower than theirs. Online shopping has made it so much easier for customers to compare pricing that having the best price could give you a competitive edge. While this will reduce your profit margin, it can increase your customer base and your sales volume. If you don’t feel you can offer a lower price, at least offer a comparable one. Then look for other ways to lure customers away from your competitors.
No matter how good your products are, consumers won’t know that until they’ve tried them. If everyday lower prices aren’t an option, consider an introductory discount for first-time shoppers. You can also offer discounts for referring a friend or offer free shipping. Free shipping can be a big draw when trying to attract new customers. An article by Rejoiner cited an AlixPartners survey which showed that shipping cost was the number 2 reason for consumers to abandon their online shopping cart. Out of the group that participated in the survey, 95% said that shipping costs impact their online ordering decisions. Hassle-free returns are also a great way to attract new customers. Some companies are offering free returns while others are allowing you to return them to their local brick and mortar store.
Online or in-person, excellent customer service can go a long way. If a customer has an issue with a purchase, go above and beyond to make it right. Add free samples, surprise bonuses, and discount coupons to your shipments. Do everything you can to make sure every customer is completely satisfied with their purchase. This will help to build strong brand loyalty, resulting in repeat business. Satisfied customers can often become your best advocates, telling friends how pleasant their own experience was with your company.
While these actions will all contribute to building your online presence, you will have to up your marketing game as well. Unless you have some website or digital marketing experience, it’s best to hire a professional agency to handle it for you. If you get it wrong, your online efforts could do more harm than good.
Succeeding in the online marketplace can be challenging but not impossible. Like any other business venture, It is an investment of time, effort, and of course, money. At CapFlow Funding Group, we understand that this kind of investment can be difficult when experiencing a downturn in business, no matter what the reason.
We offer invoice factoring and merchant cash advances and are dedicated to providing the short-term working capital you need to establish your presence in the online marketplace and remain competitive. 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.
While some states are beginning to let businesses reopen, there are many where business owners are anxiously waiting to open their doors to the public again. When that time comes, it’s important to be prepared. Now is the time to create a business guide that will clearly define how you and your staff can reopen safely and successfully.
The goal is to make the health of your customers and employees a priority while making your reopening profitable. Finding the perfect balance between the two can be a challenge. Here are some ideas that may help to achieve that balance a little easier. Although not all of these will apply to your specific industry, they may serve as an inspiration for developing your own business guide for reopening once the restrictions are lifted in your state.
Open offices have been increasingly popular in recent years. The concept was originally introduced by early 20th-century architect Frank Lloyd Wright, who believed the design would unify the workplace. Modern designers and architects have continued the trend, believing it encourages collaboration and creates a more relaxed work environment. However, the recent pandemic may have us reevaluating the benefits of the cubicle.
Wright’s vision was to have workstations without walls yet still have open space between them. What has inevitably happened in many open offices is desks are butted up against each other, leaving only a few feet between employees. This concept definitely doesn’t allow for social distancing and increases the potential for the spread of everything from the common cold to more serious illnesses. The cubicle is one option for making employees feel more comfortable about returning to the office.
Prior to the spread of COVID 19, working from home carried a stigma. Although some companies experimented with the concept, many business owners felt their employees would be distracted or less productive when working from home. Working remotely was a privilege reserved mainly for high level, white-collar management personnel. According to the 2019 National Compensation Survey (NCS) from the federal Bureau of Labor Statistics, only 7% of civilian workers in the United States have access to a “flexible workplace” or remote work. This survey defined civilian workers as private industry workers and state and local government workers.
However, the current pandemic has made working from home a necessity for many businesses in order to sustain daily operations. It has allowed both employers and employees to experience the benefits of remote work. Results of a recent study by Airtasker found that working from home not only benefited employees by eliminating their daily commutes but also increased their productivity. Many tech and digital marketing companies have gone fully remote during the pandemic with favorable results. Some are even considering making it permanent. By eliminating the need for a physical office, their overhead cost could be greatly reduced.
Restaurants and retailers have been among some of the hardest-hit industries during this pandemic. Many have followed the lead of the local pizza places and larger grocery store chains by offering delivery and curbside pickup. Although the benefits of these services are obvious during the pandemic, many are wondering why more restaurants and retailers haven’t implemented these sooner. Even with the prospect of the post-pandemic “new normal”, many people will resume their busy schedules. A greater focus on delivery and curbside pickup can provide an enhanced customer experience that translates into increased brand loyalty and revenue for restaurants and retailers beyond the fast food and grocery industry.
Entering the online marketplace can be a lifeline for retailers during the pandemic. It can also greatly expand their customer base, increasing post-pandemic business as well. eCommerce can offer numerous benefits to both business and consumers. It may well continue to make up a large chunk of retail business once the current health threat has been put to rest. If you aren’t currently operating an online store, it is an investment that should be seriously considered when developing your business guide for surviving the financial impact of the pandemic.
It goes without saying that ongoing cleaning and sterilization processes are key to developing a business guide to opening your doors to the public again. However, this is also the perfect time to reevaluate the different ways you can conduct business. Making changes and acclimating your employees to them can take capital you might not have readily available post-pandemic.
CapFlow Funding Group can help. We are dedicated to providing the short-term working capital you need to reinvent the way you conduct business. Specializing in invoice factoring and merchant cash advances, we will work with you to find the best funding solution.
CapFlow also works 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.
If you’ve been hesitant about expanding your business into the eCommerce marketplace, the recent pandemic and resulting quarantine may have you rethinking that decision. Prior to the pandemic, online sales were projected to make up 22% of the total global retail sales by 2023, almost triple what it was in in 2015. The necessity to purchase goods online during quarantine could make that figure a reality much sooner.
For those consumers not already shopping online, sheltering in place forced many to give the eCommerce marketplace a try. Once they’ve realized the ease and convenience, many will continue to do at least some of their shopping online, even when it is no longer necessary. And, of course, those already doing business online will continue to do so once life returns to normal.
However, there has been much speculation as to what normal will look like. Will people continue to avoid crowded brick and mortar retailers for fear of contracting an illness? Will social distancing and working from home become the new normal? While there are no concrete answers to these questions, there’s no doubt that eCommerce is on the rise. It might be time to take another look at how your business could benefit from entering the eCommerce marketplace.
Launching an eCommerce website can significantly increase your customer base. Your products will be available to those outside your local vicinity that wouldn’t normally have the opportunity to frequent your brick and mortar store. This can be especially beneficial for those businesses in a niche market. An eCommerce site can make your unique products readily available to consumers around the world.
Expanding your reach will, of course, increase your sales. However, marketing is just as important for your website as it is for your physical location. You’ll need to create a digital marketing strategy to promote your eCommerce business and establish an online presence. Become active on social media platforms, utilize online advertising such as Facebook or Google ads, and encourage customers to leave online reviews.
Entering the eCommerce marketplace can incur a significant upfront cost. However, it will be much less expensive than opening another physical location and will have the ability to reach a much larger audience. The daily operating expenses will also be smaller. An eCommerce website requires a much smaller workforce and eliminates the expense of a storefront, displays, signage, and more. In some cases, businesses transition completely to eCommerce, enabling them to increase sales and reduce their overhead expenses.
With an increasing number of consumers shopping online, entering the eCommerce marketplace is essential to remain competitive. Everyday consumers use computers, tablets, and phones to search for products they want. If your business doesn’t have an eCommerce website or you’re not taking the proper steps to promote it, many of those consumers will end up doing business with one of your competitors.
Business expansion requires a substantial initial investment and branching out into eCommerce is no different. If your business is ready to make that move, CapFlow funding 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 establish your presence in the eCommerce marketplace and remain competitive. 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.
Cybersecurity threats have been on the rise in recent years and should be among the top priorities in any business continuity plan. With so many businesses suddenly exploring the option of giving up the traditional office and having employees work from home as a result of COVID 19, it has become an even bigger concern. While it’s important that employees working remotely still have access to programs, information, and other online systems necessary to remain productive, working remotely can result in an increase of vulnerable devices accessing your business network. This has the potential to put the security of your company’s data and intellectual property at risk.
A recent study conducted by OpenVPN has found that more than one in three organizations has dealt with a security incident that was the result of the unsecured remote workers. For those looking to make this transition to remote work permanent, increased cybersecurity measures are absolutely crucial. However, cybersecurity measures should be a key component of any business continuity plan. Here are some security measures that should be included when establishing or updating your cybersecurity.
Educate your employees on the constantly evolving cybersecurity threats such as phishing. According to Retruster’s 2019 phishing and email fraud statistics, 90% of all data breaches are the result of phishing scams. Cybercriminals have become highly sophisticated. They create phishing scams that can be effective in encouraging employees to click on email links that end up providing cybercriminals with access to your company’s network. Employees should hover over links and examine the URL’s. If a link is from an unknown source, they must not click on it.
When working remotely, employees will be using the wireless network in their home or possibly even public WiFi. Accessing work emails and other work-related tools and information on these networks will make it easier for cybercriminals to steal your company’s data and proprietary information. Require employees working from home to use a virtual private network (VPN) connection. A VPN allows you to create a secure connection to another network by encrypting internet traffic. This is especially important when using public or unfamiliar networks.
Home networks often lack sufficient security, making them vulnerable. Employees rarely change their router passwords or install program and firmware updates. Software and firmware updates often include patches to address security vulnerabilities. When allowing them to work from home, employees can reduce vulnerabilities by installing updates, regularly changing passwords or disconnecting old, vulnerable devices from their home network.
It’s vital that your employees understand that physical security is also extremely important to your company’s cybersecurity and business continuity. Remind them to follow these basic physical security measures. Keep doors locked when no one is home. Computers are often stolen in home invasions and leaving the door unlocked is like an open invitation. Don’t leave laptops or any other work-related devices in the car. When traveling, employees should keep these devices with them. Also, never use a random USB device. Hackers use malware-infected flash drives laying around, hoping someone will pick one up and plug it into their computer. This can provide them access to your entire network.
When an employee suspects they have experienced a cyberattack, time is of the essence. Establish a cyberattack reporting policy and make sure your employees understand that any attacks must be reported immediately. The longer they go unchecked, the more extensive the damage to your company’s financial health and reputation will be.
In today’s high-tech world, cybersecurity is vital to business continuity. Whether your employees are working remotely or returning to the office, it’s crucial you have the proper firewalls, malware protection, VPN’s and more in place. However, it can also be overwhelming and require the expertise of an IT team, an expense many small businesses may struggle with even though they know it is a necessary investment.
Whether you’re looking to create your own IT dept or just outsource your IT issues, CapFlow Funding Group may be able to help make that happen. We offer working capital solutions to quickly provide the funding you need to protect and grow your business. We work with business owners across various industries to find the best working capital solutions to their businesses on track. Capflow specializes in invoice factoring. We also offer merchant cash advances and work with trusted partners to make additional funding opportunities available. Our team will work tirelessly to see you through to success. Contact us today!
