As the holiday season unfolds, businesses, especially Small and Medium-sized Enterprises (SMEs), brace themselves for the surge in consumer demand. From the frenzy of Black Friday to the digital craze of Cyber Monday and the ongoing holiday spending spree, SMEs grapple with managing resources and cash flow while meeting escalated consumer expectations.
Retail Landscape: This Year's Trends
According to experts from ABC News, retailers kickstarted their deals as early as October this year, resurrecting a trend born during the pandemic amid supply chain issues and inflation concerns. U.S. shoppers have already injected $86.6 billion into the economy between Nov. 1 and Nov. 24, as per Adobe Analytics. Forecasts anticipate today's Cyber Monday sales to reach record highs.
E-commerce spending on Black Friday soared by 7.5% compared to last year, surging to an impressive $9.8 billion in the U.S., outpacing initial expectations from Adobe Analytics, which forecasted $9.6 billion.
Once again, Black Friday eclipsed Thanksgiving Day spending, with shoppers investing $5.6 billion in preparations for the end-of-year rush. Thanksgiving spending saw a 5.5% increase compared to the previous year.
Supporting Balance Sheet Objectives
In navigating this dynamic retail landscape, businesses are actively seeking financial tools and strategies to thrive during this bustling season. Harbor’s trade finance solutions empower companies to stock their inventory before payment obligations to overseas suppliers arise, providing the financial flexibility needed to seize opportunities, ensure ample inventory, and cater to heightened consumer demand without immediate financial strain.
Monetizing Accounts Receivable and Optimizing Procurement:
Suppliers, facing peak accounts receivable during the holiday months, can leverage innovative financial solutions. By monetizing their accounts receivable, they can access much-needed capital quickly, enhancing liquidity to meet increased production demands and navigate the seasonal surge.
Buyers, whether retailers, distributors, or ecommerce players, can play a strategic role in this ecosystem. Utilizing supply chain or procurement finance, they can meet their balance sheet objectives while simultaneously offering favorable terms of payment to suppliers. This dual benefit not only ensures smooth operations for suppliers but also strengthens the buyer-supplier relationship, fostering a collaborative and sustainable business environment.
Harbor’s comprehensive trade finance solutions go beyond extended credit terms, addressing the entire financial spectrum for companies involved in international trade. Whether it's empowering suppliers to monetize receivables or assisting buyers in optimizing procurement, Harbor stands as a strategic partner for businesses looking to thrive during the bustling holiday season.