Retail sales for the 2015 Christmas season rose by a healthy 7.9%, as reported by MasterCard, which looks at US retail sales trends. The big winners are eCommerce and furniture, with double-digit growth.
Earlier in the year, US consumers reported doing more online research before buying. With retailers becoming more and more adept at converting “researchers” into “buyers”, it’s no surprise that eCommerce grew this last Christmas season by a mammoth 20%.
So, why are hard goods like furniture grow so significantly? Researchers believe that there was a significant pent up demand for these larger, long-lasting assets. People had just been putting these purchases off for several years. So, why now?
With oil prices down to $30 per barrel and gas prices lower than we’ve seen in almost a decade, the economy is performing well. On average, consumers are spending $500 dollars less per year on gas. Analysts believe that these savings are going back into the economy in the form of furniture purchases.
All of this is good news for the consumers and the economy. Here’s the rub. Many producers of these consumer goods have to wait 30-60- or 90 days to get paid by retailers. So, while the manufacturers and distributors are awaiting payment, orders back up with no cash to produce the goods.
So, what can businesses in this position do? Our fast financing solution is to sell outstanding invoices. This process, called invoice factoring, has several major advantages.
- The cost is usually between 1-4%
- The approval process is under a week
- Once approved getting cash is just a matter of hours
- There’s no debt, so there’s no payments
For more information, contact one of the country’s most experienced and most respected invoice factoring companies; Universal Funding at 800-405-6035 to get started today.