You cannot view any economic blog or news feed without reading the latest warnings about a looming economic recession. The warnings have now reached a fever pitch with the latest reports of a second quarter of negative GDP. And, important to you, if your 9-5 job is one that is tied to rising interest rates or an industry that is susceptible to downturn due to our current uncontrollable inflation, it may be the time to begin to at least prepare for the worst and a possible layoff. “Job prospects are likely going to get much worse in the next few months”, says Laurence Ball, an economics professor at Johns Hopkins University. “The question is: ‘How much worse?’” If you’re thinking of looking at a career change soon or even starting a “side gig”, you should know that, while no job is completely recession-proof, certain well-known industries tend to fare better than others during an economic downturn. These include industries like healthcare, government, computers and technology, and education. But, what about a solid home-based business with excellent income potential during normal times but one that actually increases with potential when economic times are tough? If this kind of “gig” interests you, then consider entering factoring and business finance as a freelance consultant.
Factoring “Recession Proofs” a Small Business
Running out of cash and working capital is always a critical concern for all business owners, but it becomes especially important during a recession. One of the most common problems during any recession is with customers who will become “slow payers” upon their invoices as the recession lingers on. This cash flow pressure from such customer payments is inevitable during any recession. To prepare, business owners should start getting a handle on current cash positions on hand and pay attention regarding unnecessary uses of capital. Most important is to plan…plan…plan ahead. Savvy business owners set up critical financing options before needed and for strictly B2B operators, one of the most easily accessible tools for preparation for such difficult times is to set up an accounts receivable financing / factoring arrangement early on. Worldwide, factoring is the most commonly employed remedy and tool for financing invoices and terms of payment. Unfortunately however, many small business owners have little actual knowledge regarding factoring and its power to deal with such cashflow problems. For many, some business owners will be forced to learn the hard way and literally claw their way through during the tough times. An easier way to learn more about this powerful recession fighter is, however, by working with any local factoring broker or business finance consultant.
Factoring is simply one of the best methods available for B2B business owners to weather this type of storm. With a factoring arrangement in place, a small business owner can plan on receiving immediate cash in the form of an advance on its customer invoices for goods and services virtually immediately upon delivery. This means cash flow problems caused by slow paying customers are virtually eliminated. In addition to actual financing services, factors also provide additional assistance to business owners by gauging the financial health of customers, rate customer’s ability to make timely payments, and even recommend advances of credit or “limits” to new customers in situations where recessions linger on.
Agents, Brokers, or Consultants: Get Involved Now
As mentioned earlier, there is never really a “bad time” to get involved in the factoring and alternative commercial finance industry for those seeking a new-home based business to enter or simply to set up a new part-time income stream. This is a very easy industry to learn and enter and with help from the training available from the IACFB (International Association of Commercial Finance Brokers), it is also one of the most affordable of all high-potential income home based business opportunities.