Unless you’ve been living under a rock, then you’ve no doubt learned that the Covid-19 (coronavirus) is causing major disruptions in business. The U.S. has restricted travel from Europe, the entire country of Italy is under quarantine, and the NBA has suspended its entire season. The coronavirus crisis isn’t just ruining vacations or limiting concessions sales at arenas, though; the stock market has taken numerous dips, and a full-on recession is possible.
While we don’t want to sound alarmist, it’s important that businesses prepare for whatever type of economic downturn the pandemic may cause. To be sure, a recession often means tough times for business, particularly ecommerce business whose margins are often already tight. Whenever a recession hits, it’s common (and common sense) for a business to tighten its belt.
It’s often during these tough times that cash flow becomes a huge issue for businesses trying to keep their heads above water. It’s great when you have a good relationship with a vendor or a buyer, and you can work something out. But that level of trust often takes years to build, and not everyone you do business with may be as understanding or flexible as you need them to be.
That’s where pay-over-time and flexible payment services like Credit Key can really be a lifesaver. Let’s look at how we can help both sellers and buyers create a cushion for themselves in less than optimal economic conditions.
For Sellers: Customer Friendly Terms = Improved Customer Loyalty
Business in a good economy is already tough, but add in a slow down or recession and it becomes downright cutthroat. But one thing that can really set a seller apart from competitors is by offering customers the option to pay over time. Cash is king no matter what, and allowing customers to make orders without having to pay for them in full can give your customers a little breathing room to help them stay in the black. Sellers don’t have to worry about cash flow issues as much, though, as orders paid with Credit Key get paid to the merchant within 48 hours. Imagine how many more customers will want to do business with a company that works with its buyers and not against them?
For Buyers: Pay Any Invoice with Flexible Payment Terms
For buyers, they don’t necessarily have to use a Credit Key merchant to use Credit Key to pay for things. In fact, they can submit any invoice from any merchant to be paid over time, while also selecting the payment terms that best suits their financial needs. All they need to do is apply for a Credit Key line of credit, submit the invoice, select their terms, and we take care of everything else. This can help businesses continue to get the materials and products they need in order to continue to function without missing a beat.
So, regardless of what’s happening with the economy, it’s clear that services like Credit Key are designed to keep your business a step ahead. Want more info on how Credit Key can help your business? Contact us for a full demo.