Forbes 5 Business Predictions for 2016

Here’s a quick recap of Forbes 5 Business Predictions for 2016

politics1.  2016 will be affected by politics.

Congressional elections will be as important as the presidential election in terms of determining the direction of the country. A sharing of power generally means a more stable economy. Single party power lends itself to greater extremes in social legislation and economic policies. Economic volatility and uncertainty can be expected throughout 2016 until elections are over.

2.  It will be a challenging growth year for medium-sized companies.

New sales and revenue are going to be harder to come by as the U.S. economy begins to experience the slowdown felt by the global economy. Larger companies, a demand source for middle-market suppliers, will begin to cut purchases and work off inventory.

3.  2016 will be the year of the mega-merger.

Mega-mergers are expected to continue through 2016, and smaller companies will be attractive add-on acquisitions to larger companies. Smaller companies that demonstrated a track record of profitable innovation and have a compelling brand are particularly in demand.  You might consider preparing your company for acquisition.

4. Lower oil prices can be expected through mid-year, followed by gradual increases in the cost of oil.

Expect massive consolidation of smaller U.S.-based oil exploration and production companies, and a decrease in worldwide production to match demand, thereby stabilizing oil prices about mid-year. Consider purchasing forward futures on raw materials and energy early in 2016.

5. Expect increasing interest rates and tougher credit for business.

According to a report published by the National Small Business Association, nearly a third of small businesses are without the capital they need. Many businesses don’t even apply for financing because they believe they will be turned down. Expect tighter capital markets for small business in 2016 and higher borrowing costs for those companies that are able to get credit.

To prepare your company for the challenges and opportunities that will arise in 2016, contact Universal Funding to discuss invoice factoring as a viable and inexpensive alternative to get access to capital. Call 800-405-6035 to get started today.

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