During the pandemic, small businesses suffered a hit. The demand for digital tools and long-range deliveries increased. In the post-pandemic times, inflation is drastic. Small businesses are struggling to stay afloat because of their narrowing working capital.
PYMNTS conducted a study and interviewed small businesses with physical storefronts. Around 12% of them expressed uncertainty about prospects. They are unsure about whether they will be operational in 2024. 70% of them state that inflation has affected them. Of these, 57% also had to increase the prices of their products. But they need more to make up for their losses.
Delayed payments are a significant issue behind the shrinking working capital. Small businesses do not have an adequate workforce. They cannot manage on a wide scale. Furthermore, slower funds affect consumer and client satisfaction.
Payment management solution providers are turning their attention toward these small businesses. Digital tools will be a significant help in simplifying payments. Plastiq is taking steps to provide the same.
Eliot Buchanan is the CEO of Plastiq. He stated that they aim to provide better management systems to small businesses. According to him, cash and time are the two most important factors for these companies.
Businesses can streamline their processes with higher flexibility in payment procedures. Plastic has developed digital tools that allow this. They created a billing platform that is versatile and quick. It also provides the option of credit card payments for smoother transactions.
Cryss Simmons is the CEO of Lamb and Honey. She explained how her business thrived by providing online purchases and deliveries. They also incorporated a subscription system. These innovations helped Simmons grow the business during trying times.
Brad Ruffkess, CEO of BoxLock, had a similar experience. BoxLock used to be an offline storage and security system. Since the pandemic, the company has changed. They integrated API solutions and notification systems. Doing this decreased the pressure on the working capital. They can conduct business with proper cushioning.
According to Buchanan, digital tools will boost the optimistic outlook of business leaders. He believes they can persevere through the current financial crisis.