The retail industry has gone through some pretty drastic changes as of late, and is positioned to change even more over the next few years. Brick-and-mortar stores must once again adapt to new demands and competition in order to survive. Where they should start, however, isn’t exactly clear. A Google search on the subject will yield a seemingly endless list of tools and strategies that smaller retailers are strongly urged to implement as soon as possible. But let’s be honest: The most stressful part isn’t choosing how to spend their hard-earned money. It’s knowing they might not have enough money to fulfill the myriad requirements for success.
It’s safe to say that retail stores would feel a lot less anxious about the future if they had quick access to retail small business loans designed exclusively for their financial cycles. New types of investments call for innovative, flexible repayment terms, and that just happens to be our specialty at United Capital Source.
Your Website Could Probably Use A Makeover
It’s no secret that technology is what separates today’s retail industry from the past. The most successful stores are using technology to provide an increasingly seamless customer experience. A mysterious word you’ve probably heard these stores emphasize is “personalization.” What does this mean? It’s actually a very simple, common sense, online or mobile strategy. Think about the last time you visited a retail website you’ve previously used to buy at least one product. After logging in, you were probably brought to a page featuring a list of different products, many of which were big sellers. But did any of these products reflect your taste?
If this company’s website revolved around personalization, the first page would have only featured products that you might actually buy, as opposed to its best-selling products. When customers open their weekly emails, the content is based on previous purchases and items they showed interest in. Your competitors are able to do this thanks to both in-store and digital data. Those with considerable funding hire private companies or in-house employees to collect this data and apply it to their websites. Their social media accounts receive a makeover as well, since more and more customers are now finding and buying items through networks like Instagram or Pinterest.
Finding And Financing Good Help
You are going to have to make these changes sooner or later, and it only makes sense to strike now, while the iron is hot. Your eligibility for additional business funding might begin to diminish while you lose sales to your more-capitalized competitors. Popular business funding programs for our retail clients include short-term working capital loans, business lines of credit, and credit card factoring. The latter option is particularly advantageous for businesses that generate a great deal of revenue from credit and/or debit card transactions and are prone to occasional dips in cash flow. You’ll want to have your new website ready in the months leading into a busy period. Since tight cash flow isn’t a stringent requirement for credit card factoring, you could receive funding at almost any time of the year, or in this case, one that ensures the website maintenance begins on your desired date.
Payments for credit card factoring are directly tied to credit and debit card sales, so you only make significant payments when sales volume is on the rise. This makes credit card factoring ideal for long-term investments that might not generate much revenue right off the bat but eventually increase sales more and more over time. We will likely be able to provide enough funding for you to hire quality help and, if you are outsourcing the work, pay them on time without disrupting cash flow.
New Supply Chains Are Setting In
The next step is to apply that data and changes in demand to your inventory system. You know what your customers like, you’ve just got to make sure you give them more of it and at a faster rate. This can be accomplished in a number of ways. Maybe you need to find new suppliers and incentivize them by agreeing to their terms. Maybe you need to get better at paying your current suppliers ahead of time and develop a relationship that will likely lead to discounts. The main goal is to always give customers a reason to come back to your stores. For the most successful retailers, this means having batches of new and different products delivered to their stores in increasingly smaller intervals.
While credit card factoring may be the best option for buying inventory in bulk ahead of season, another sensible business funding program for the system described in the previous paragraph is a business line of credit. This is geared more towards short-term investments or regular expenses that cost the same every month. Interest rates for a business line of credit are lower than credit card factoring, and your borrowing amount increases as long as you keep making payments. In the event of an unexpected financial gap, you could also use a business line of credit to stay current on bills or pay your employees before your receivables come in.
No One Knows Personalization Better Than UCS
Two recurring themes of these strategies are speed and convenience, which just happen to be among United Capital Source’s greatest strengths. As we’ve established, companies that are not easy to work with will soon die out. And that doesn’t just refer to getting funded quickly. In a matter of days, we can find the business loan that suits your individual circumstances perfectly, and no, it doesn’t have to feature the same terms as our other retail clients. In an age of personalization, we have the capabilities to customize small business loans to work for virtually any thriving business in 2018.