Did the winter storms of 2014 and 2015 have a negative effect on your business? According to economists, the weather vortexes and massive volumes of snow, costs the US economy hundreds of millions of dollars.
In fact, a recent article published in Fortune magazine reports that the previous winter of 2013-2014, a series of severe snowstorms across America shrank the economy by 2.1% in the first quarter of 2014.
In that instance, the bad weather was persistent enough to mess with supply chains. That led not only to fewer consumer purchases, but also to companies buying less than they otherwise would.
Universal Funding’s President Kyle Bergstedt explains, “This past winter was tough on the Northeast and the businesses operating in that region, so it’s no surprise that the companies recently seeking our cash flow services are based in that area”. Many businesses limped through the season and are now ramping up production and need financing to shore up cash flow reserves.
While it’s currently impossible to know for certain the quantitative effect that this winter’s snowstorms played in the economy, suffice it to say the numbers won’t be pretty. If the bad weather was persistent enough to affect supply chains and inventory, then Q1 losses may very well mirror the previous year’s shrinkage.
These economic impacts will likely reveal themselves in cash flow issues. When cash flow is low, invoice factoring is a fast solution to shore up working capital and production.
If your business was impacted by the winter weather, let Universal Funding help you get back on track. Just give us a call at 1-800-405-6035 today.