The current economic outlook is complex. Some experts are predicting a recession while others are indicating we will have a “soft landing.” Still, some insist there are signs of growth. No matter how you cut it, or which headlines you see, there are two things every business owner should know:

1. None of the experts will ever agree on an economic outlook.

2. Businesses need to have capital on hand to take advantage of economic upswings and to weather downturns.

Preparing Your Business for a Potential Upswing

There are sectors that were picking up momentum at the end of 2022 and are now positioning themselves for growth in the first half of the new year. Healthcare, oil and gas, freight, e-commerce, and others are seeing increased revenue despite headlines about a looming recession. Having capital on hand allows businesses to maintain an upward trajectory, even as traditional lending channels raise credit and collateral requirements. Invoice factoring allows businesses to maximize cash flow to cover immediate expenses while accumulating capital to act on growth opportunities. In businesses that use a point-of-sale, a merchant cash advance offers an injection of discretionary capital without placing debt on the books, so businesses can stay competitive and grow without relying on traditional loans. Additionally, businesses can use unsecured lines of credit to get a source of capital without any collateral requirements to improve their purchasing power as they roll out their plans for growth.

Weathering an Economic Downturn

For business owners that may be feeling downward economic pressure, or are simply looking for a way to insulate themselves against a downturn, working capital is still the best solution. In an economic climate where anything can happen, businesses need to reduce or eliminate outstanding receivables to ensure there are no gaps in revenue. Invoice factoring removes having to wait 30 days or longer for customers to pay by unlocking the revenue from unpaid invoices quickly. This allows businesses to cover expenses and build up capital to protect their operations in case of an economic downturn. Additionally, a merchant cash advance provides capital without fixed payments or placing debt on the balance sheet, so businesses can maintain operations and make sales without placing a strain on cash flow or finances. Finally, having an extra source of working capital on hand through an unsecured line of credit gives businesses the ability to handle the unexpected.

If you want to explore solutions for your business – whether you want to make sure you are prepared for a potential downturn or if you need to reach critical milestones for growth – reach out to Prime Commercial Lending. We will create a tailored solution that fits your needs.