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Stories (3/0)
How Do Climate Change And Natural Disasters Affect Small Businesses?
In the course of the entrepreneurial journey, a business owner faces multiple challenges that affect the cash flow of the business. Factors like economic shifts, pandemics, unexpected political turmoil, alteration in taxation policies, import restrictions, and climate change often influence businesses negatively. When it comes to climate change, the impacts on a business depend on the industry it is trading in, its location, and its vulnerability, like the factors on which its services/products or manufacturing process depend. Natural disasters like drought, floods, cyclones, bushfires, etc. impact businesses either directly, by causing physical damages, or indirectly, by disrupting the supply chain and curbing buyers’ purchasing capacity. For example, travel businesses of a flood-prone city face setbacks during monsoons, when the number of tourists reduces. Hence, while identifying the climate-induced risks, an entrepreneur must consider his/her business’s operating location, structure, susceptibility, and the specific industry it belongs to. However, catastrophic climate changes usually affect businesses in the agricultural, forestry, and fishing sector more than the ones trading in other categories. This is because these businesses need to rely primarily on the environment to operate uninterruptedly. On the other hand, industries like manufacturing, tourism, and retail are also affected by climate change, but mostly indirectly, until any physical damage is caused to the business assets by a flood, storm, earthquake, etc.
By zeropoint financeabout a year ago in Earth
Popular Financing Options For Car Dealerships
Though car dealerships are quite a popular business, it comes with considerably thin profit margins and faces fierce competition due to the increasing disposable income of the urban mass and the easy availability of car loans with low-interest rates. Besides popular franchise dealerships like Honda, Toyota, Volkswagen, Ford, etc., there are multiple single-person-owned registered car dealership companies in the U.S. Independent car dealers vastly uphold the used car market sales. To thrive in today’s highly-competitive auto sales industry, car dealership owners often require business financing to cover various operational expenses and also to ensure uninterrupted growth. But, car dealership owners, many times, face difficulty in getting business loans, as quite a few lenders view car dealerships as a high financing risk considering the narrow profit margins, fast depreciating inventory, erratic growth of sales, and seasonal setbacks. However, convenient business financing options are available for both used and new car dealers.
By zeropoint financeabout a year ago in Longevity
The Current Merchant Cash Advance Market Scenario
For small to medium businesses, accepting credit card payments, Merchant Cash Advance (MCA) is quite a convenient financing option, when working capital is required on an urgent basis. Now the question that might arise is; how does the MCA industry work? So, fundamentally, MCA companies offer advances in exchange for a certain percentage of the borrower’s future credit card sales. Hence, more than a loan, the transaction can be considered a kind of sale, where the borrower purchases the advance and repays the amount along with the fees later. As the repayment of the fund takes place through a percentage of sales, the amount recovery often gets slow when revenues go lower than expected. However, to understand if MCA is ideal for SMBs, it is quite crucial to get a clear idea of where the MCA industry currently stands and how it works.
By zeropoint finance2 years ago in Journal