With inflation skyrocketing to a 40-year record high, Main Street is turning to price hikes and other measures to cope.
Protecting Small Business from Inflation
HOUSTON, March 22, 2022 (GLOBE NEWSWIRE) — Leading invoice funding company Charter Capital says small business owners are struggling to keep up with record-high inflation rates. Feeling little choice but to pass higher costs onto consumers, many continue raising prices to cover their costs. “7 Proven Ways to Protect Your Small Business from Inflation,” a guide that explores the mechanics behind the situation and offers business owners methods to keep their companies strong, is now live on CharterCapitalUSA.com.
As reported by the Bureau of Labor Statistics (BLS) in early March, the Consumer Price Index (CPI) rose 7.9% over 12 months, marking the largest inflation rate since 1982. Gasoline, shelter, and food saw the largest hikes. Energy, as a whole, climbed 25.6% over last year.
“Small businesses, especially, are feeling the strain,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “Between the pandemic and supply chain issues, the past couple of years have been tough. Most expected some relief in 2022, but they’re back in the problem-solving mode now with the inflation hikes.”
Rosenthal says Charter Capital is seeing an uptick in invoice factoring applications in recent months. While some are tapping into funding right away, others are simply becoming established to make sure they have access to cash if conditions continue.
“The rising energy costs are universal, and there’s a bit of concern that energy increases alone will be more than some can bear without mitigation measures,” Rosenthal continues. “But industries like manufacturing and retail are still coping with supply chain issues too.”
Rosenthal contends there are many ways business owners can protect their businesses in spite of current conditions, though. Cost-cutting measures, such as renegotiating with vendors and landlords, as well as reducing discretionary spending, are good first steps. Businesses that are in a position to conduct energy audits and address opportunities will see relief as well.
Other solutions include investing in growth and promptly collecting client payments, though Rosenthal acknowledges it may become harder for businesses to collect because companies are starting to triage their payables to cope with economic challenges again. Invoice factoring, he says, can help address all these areas by allowing companies to outsource their collections processes and obtain working capital funding on B2B invoices.
Those interested in learning more about invoice factoring are encouraged to request a complimentary quote by calling 1-877-960-1818 or visiting CharterCapitalUSA.com.
About Charter Capital
Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit CharterCapitalUSA.com or call 1-877-960-1818.
Smart strategies can help your small business thrive in a difficult economy.
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