The COVID-19 Pandemic Has Caused a Setback of Over a Decade in Labor Market Participation for Women in the Region

Woman Labour

In a new special report, ECLAC stresses that it is essential to advance toward policies that contribute to a sustainable recovery with gender equality in Latin America and the Caribbean.

The crisis caused by the COVID-19 pandemic has had a negative impact on employment and labor conditions for women in Latin America and the Caribbean, generating a setback of more than a decade in terms of the progress achieved in labor market participation, according to Special Report COVID-19 No. 9: The economic autonomy of women in a sustainable recovery with equality, released today by the Economic Commission for Latin America and the Caribbean (ECLAC).

According to the report, the rate of job market participation by women was at 46% in 2020, while for men it was 69% (in 2019, these rates were 52% and 73.6%, respectively). It is further estimated that the unemployment rate for women reached 12% in 2020, a percentage that rises to 22.2% if we factor in women’s participation in the labor force in 2019. In 2020, the study explains, there was a mass exodus of women from the labor force, who have not returned to search for employment, having to attend to care demands at home. 

The decline in regional gross domestic product (GDP) (-7.7% in 2020) and the impact of the crisis on employment are negatively affecting household income, says the report presented at a press conference by Alicia Bárcena, ECLAC’s Executive Secretary. The United Nations regional organization estimates that around 118 million Latin American women are living in poverty, 23 million more than in 2019.

“The women of the region are a crucial part of the frontline response to the pandemic. Some 73.2% of people employed in the health sector are women, who have had to face extreme working conditions such as long work days, in addition to increased risk of contagion as health personnel. All of this in a regional context in which salary discrimination persists, where salaries for women who work in the health sector are 23.7% less than men’s in the same sector,” pointed out Alicia Bárcena.

The study further underscores that paid domestic work, characterized as highly precarious and impossible to do remotely, has been one of the sectors hit hardest by the crisis. In 2019, before the pandemic, around 13 million people worked in paid domestic labor (91.5% of them women). In total, this sector employed 11.1% of employed women in the region. However, in the second quarter of 2020, the employment levels in paid domestic work fell -24.7% in Brazil; -46.3% in Chile; -44.4% in Colombia; -45.5% in Costa Rica; -33.2% in Mexico; and -15.5% in Paraguay.

“Latin America and the Caribbean must invest in the care economy and recognize it as a dynamizing sector in the recovery, with multiplying effects on wellbeing, the redistribution of time and income, labor participation, growth and tax revenue,” asserted the ECLAC senior authority.

In this context, Bárcena encouraged governments to “prioritize health workers in their vaccination strategies – including persons who provide associated services like cleaning, transport and care – as well as those working in educations systems and domestic health, most of them women, who are a fundamental pillar for the care and sustainability of life.”

According to the ECLAC report, 56.9% of women in Latin America and 54.3% in the Caribbean are employed in sectors where the pandemic is expected to have a higher negative impact in terms of employment and income.

According to the study, the closing of borders, restrictions on mobility, the fall in international trade and paralysis of internal production have impacted the female workers and businesswomen associated with sectors like commerce, tourism and manufacturing. For instance, the tourism sector, where 61.5% of positions are occupied by women, suffered a significant contraction that mainly affected the countries of the Caribbean, where one in 10 working women are employed in this sector.

During the presentation of the report, ECLAC’s Executive Secretary highlighted the urgent need to reinforce employment policies and ensure that women participate in the dynamizing sectors of the economy in decent working conditions. She likewise emphasized the importance of combining measures aimed at employment support and reactivation with measures of immediate attention to losses in income.

In this context it is “urgent that we promote inclusive processes of digital transformation that guarantee women access to technologies, strengthen their abilities and remove the socioeconomic barriers they face in order to strengthen their economic autonomy,” underlined Alicia Bárcena, while at the same time stressing the low fiscal effort posed by the basic digital basket proposed by ECLAC (1% of regional GDP) and the enormous impact connecting one of every four women in Latin America and the Caribbean would have.

“It is essential that we advance toward a new fiscal compact that promotes gender equality and prevents the deepening of poverty levels among women, the burden of non-paid work and the reduction of financing for gender policies,” she warned.

“In addition to having a gender perspective that cuts across all recovery policies, affirmative actions are required in the areas of fiscal, labor, productive, economic and social policies to protect the rights of women achieved in the past decade, prevent setbacks and take on gender inequalities in the short, medium and long terms,” concluded Bárcena.

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Mexico and Argentina Sign a Roadmap to Reactivate the Bilateral Mechanisms of the Strategic Partnership

Argentina & Mexico

As part of the official visit to Mexico of the President of Argentina, Alberto Fernández, a meeting was held today at the Foreign Ministry between the delegations of both countries. It was chaired by the Undersecretary for Latin America and the Caribbean, Maximiliano Reyes, and Guillermo Justo Chaves, Chief of Staff to the Argentinian Foreign Minister.

During the meeting, both sides reaffirmed their commitment to invigorating the political dialogue and cooperation through the Mexico-Argentina Strategic Partnership Agreement (SPA), which includes committees on political affairs, cooperation, and economic, trade and investment affairs. In line with the president’s instructions, a roadmap was signed to reactivate the existing institutional mechanisms ahead of the fifth SPA Council ministerial meeting in the second half of the year.

The roadmap is part of the joint statement the two presidents will sign at the end of the visit. It includes various agreements on bilateral, regional and multilateral issues of common interest in forums such as the Community of Latin American and Caribbean States (CELAC ) and the Group of Twenty.  

Regarding the current COVID-19 pandemic, the two sides stressed their desire to join forces and continue their close collaboration so that the region achieves self-sufficiency in vaccine production, and so that the vaccines are considered as global common goods.

Among the topics discussed, Argentina emphasized the importance of joining forces on international humanitarian assistance in light of the potential socio-natural hazards in the region, and of increasing the exchange of information and deepening coordination on comprehensive disaster risk management, resiliency and emergency response.

On cooperation, Mexico and Argentina reaffirmed their mutual interest in holding the seventh meeting of the Joint Commission for Technical and Scientific Cooperation, which will make official the 2021-2023 cooperation program to create technical cadres and promote complementarity between institutions.

At the regional level, the two officials highlighted their areas of agreement within CELAC, of which Mexico is  president pro tempore for the second consecutive year, and they reaffirmed their commitment to continue strengthening the community by implementing Mexico’s 2021 work plan.

Lastly, Undersecretary Reyes thanked President Alberto Fernández for accepting the invitation of President Andrés Manuel López Obrador to visit Mexico and to participate as a special guest in commemorating the bicentennial of the promulgation of the Plan of Iguala and Flag Day. He also thanked the Argentinian government for its willingness to participate in other historical celebrations that will take place throughout the year.

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U.S. Chamber Releases In-Depth Analysis of U.S.-China Economic Relationship

US & China

The U.S. Chamber of Commerce’s China Center, in partnership with Rhodium Group, released a new analysis today examining the complexity of the U.S.-China economic relationship. A first-of-its-kind study, “Understanding U.S.-China Decoupling: Macro Trends and Industry Impacts” seeks to better understand the degree to which the U.S. and Chinese economies are intertwined and dependent on each other for stability and growth.

By analyzing the economic impact of complete disengagement in four key sectors, the analysis helps quantify the extent to which our two economies are interconnected, ultimately helping policymakers, businesses, and other stakeholders make better informed decisions as the administration seeks to bolster America’s national security and confront China’s rising Statism.

“China is perhaps the most difficult foreign policy challenge confronting President Biden. We cannot ignore the economic challenges posed by China’s rising Statism, nor the growing national security concerns. Yet, given the interconnectedness of our two economies and importance of the Chinese market for U.S. companies, large and small, it is critical that policy decisions are informed by the best data,” said U.S. Chamber Executive Vice President and Head of International Affairs Myron Brilliant. “That’s why, for more than 25 years, the U.S. Chamber has studied and promoted commercial opportunities and worked to address China’s unfair trade and regulatory practices.”

RECOMMENDATIONS FOR POLICYMAKERS

As U.S. policymakers debate the next phase of U.S.-China engagement, the U.S. Chamber’s China Center and Rhodium Group have outlined four important takeaways that should be taken into consideration: 

  • Data analysis is critical to policymaking. China policy requires economic impact assessment, cost-benefit analysis, and a process of public debate and discovery.
  • The costs of complete disengagement (full decoupling) are uncomfortably high. Policies that reduce the costs to the U.S. economy while protecting our security—mitigation, diversification, even simple transparency with Beijing—deserve careful consideration.
  • Addressing the China challenge requires a broader spectrum of U.S. policies. Promoting domestic innovation and technology, and preserving the rules-based, open market order among like-minded economies are key to U.S. success.  Government has a greater role to play, but one that must have guardrails and ensure the continued vitality of our market-based system.
  • Washington must renew its value proposition to our international partners. No nation can address the China challenge alone, especially when it comes to sustaining technology leadership. A plurilateral approach is essential to reducing U.S. economic costs and preventing the erosion of U.S. comparative advantage that would occur if decoupling policies are implemented unilaterally.

KEY ECONOMIC FINDINGS

The analysis identifies the potential costs of a U.S.-China decoupling from two perspectives: the aggregate costs for the U.S. economy across four key channels (trade, investment, people, and ideas) and the industry-level costs in four areas of national importance (civil aviation, semiconductors, chemicals, and medical devices).

The report generally uses a full decoupling scenario—defined as bilateral flows going to zero—because it provides the most complete look at the potential impact of the current trajectory of the U.S.-China economic relationship. 

Rhodium’s Daniel Rosen, principal author of the report, said, “U.S.-China engagement was always contingent on shared liberal economic goals. As Beijing diverges back toward greater state planning, a less permissive stance is necessary. But our self-interest lies in purposeful decoupling, not a gratuitous pulling apart. This study is a step toward re-sizing our engagement rationally.”

Aggregate Costs: If the U.S. and China were to fully decouple, American businesses and our economy would be significantly impacted, resulting in hundreds of billions in foregone GDP and capital gains losses while undermining U.S. productivity and innovation.

  • Trade: $190 billion annually in foregone U.S. GDP by 2025 if 25% tariffs are placed on all two-way trade.
  • Investment: $25 billion annually in lost capital gains and one-time GDP losses of up to $500 billion if U.S. companies reduce cumulative FDI in China by 50%.
  • People: $30 billion annually in lost U.S. services trade exports if Chinese students and tourists coming to the U.S. drop by 100%.
  • Ideas: Billions in reduced R&D spending in the U.S.; diminished access to Chinese talent and science; and greater competition with China for global innovators.

“Fully decoupling the U.S. from China would undermine America’s leadership in semiconductors,” said John Neuffer, president and CEO of the Semiconductor Industry Association. “While we need to have smart and targeted restrictions to protect national security, the long-term answer to competition from China is to turbocharge U.S. innovation through robust federal and private investments in research and technology – that’s how we are going to stay on top, keep our economy strong, and power job growth.”

Industry Costs: Full decoupling would lead to tremendous U.S. output losses for strategic U.S. industries, weakening their ability to sustain U.S. jobs, R&D, and global technology leadership.

  • U.S. aviation industry: Depending on the extent of decoupling, a loss of access to China’s market for U.S. aircraft and commercial aviation services would create U.S. output losses ranging from $38 billion to $51 billion and cause the U.S. civil aviation manufacturing industry to shed 167,000 to 225,000 jobs. Cumulatively, lost U.S. market share impacts would add up to $875 billion by 2038. 
  • U.S. semiconductor industry: Depending on the extent of decoupling, a loss of access to Chinese customers for the U.S. semiconductor industry would cause $54 billion to $124 billion in lost U.S. output, risking more than 100,000 U.S. jobs, $12 billion in R&D spending, and $13 billion in capital spending. 
  • U.S. chemicals industry: From the imposition of tariffs alone, the potential cost ranges from $10.2 billion in U.S. payroll and output reductions and 26,000 lost jobs, to $38 billion in output losses and nearly 100,000 lost jobs. 
  • U.S. medical devices industry: U.S. lost market share is valued at $23.6 billion in annual revenue, which would compound to cumulative lost revenue exceeding $479 billion over a decade or approximately $48 billion annually. Lost revenue would lead to job losses and translate into a $33.5 billion reduction in R&D spending over the next decade.

“U.S. chemical manufacturers have announced more than $200 billion in new investments over the past decade, accounting for more than 50 percent of U.S. manufacturing plant construction,” said Chris Jahn, president and CEO, American Chemistry Council. “China is one of our largest exporting destinations as well as a key source of inputs. Limiting access to growth markets like China would have a comparatively more adverse effect on U.S. manufacturing than it would on China.”

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Canadian Universities Unite As Investors to Help Address the Climate Crisis

Climate change protest

The University Network for Investor Engagement (UNIE) initiative targets greenhouse gas emissions and climate risk at companies across the economy

A coalition of Canadian university endowments and pension plans is launching a new initiative through SHARE, a non-profit investor advocacy organization, to engage investee corporations on climate change risks. 

On behalf of the new University Network for Investor Engagement (UNIE) initiative, SHARE will engage with North American public companies held in university endowment and pension portfolios to address pervasive risks associated with climate change. The UNIE initiative will focus on key sectors where advocacy can make the biggest difference, including finance, transportation, energy and utilities, and manufacturing.

Initial participants include Carleton UniversityConcordia UniversityMcGill UniversityMcMaster University, Mount Alison University, Université de Montreal, University of St. Michael’s CollegeUniversity of Toronto Asset Management, University of Victoria, and York University.

“These universities are showing leadership in addressing the climate crisis. Acting as investors, Canadian university pension plans and endowments can have a powerful influence on corporate behavior. Working together in one program amplifies each institution’s voice and leverages their power to bring about change,” said Kevin Thomas, Chief Executive Officer at SHARE. 

The UNIE initiative is focused both on reducing greenhouse gas emissions and accelerating the transition to a low carbon economy.

“The actions taken by institutional investors today will play a crucial role in determining how society fares in the face of climate change,” said Thomas.

The new group was formed through dialogue between SHARE and university leaders about how to use their power as institutions to respond to the climate crisis.  Discussion started more than a year ago, and continued through online meetings during the course of 2020. It is open to new members and new member institutions are joining regularly as word gets out about the initiative.  

“This has been a collective effort, driven by the motivation of universities to take decisive action on climate change,” said Daren Smith, President and Chief Investment Officer at University of Toronto Asset Management. “Canadian universities have a unique role to play in tackling climate change – not only as thought leaders, educators and research hubs but also as investors. Participating in the UNIE initiative will be an important part of our overall responsible investing strategy.” 

“The transition away from carbon will require substantial changes in energy generation and use,” Deidre (Dee) Henne, AVP (Administration) & Chief Financial Officer at McMaster University added. “UNIE is one clear and focused way university endowments and pension plans can make a difference together. It allows us to influence how, and how fast, that low-carbon transition takes place. I invite other Canadian universities to join us.”

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Surge in Collaboration Tools for Remote Work and Education Triggers Growth of Global Wireless Content Sharing Market

remote meeting skype

Frost & Sullivan’s recent analysis, Growth Opportunities in the Global Stand-alone Wireless Content Sharing Market, finds the proliferation of remote work and learning during the COVID-19 pandemic will drive demand for wireless content sharing. Comprised of remote collaboration tools such as video streaming, application and desktop sharing and other similar capabilities, these allow users to collaborate effectively from anywhere at any time and from any device. In addition, pent-up demand arising from the widespread office and school closures in 2020 and 2021 will help the global wireless content sharing market reach revenues of $676.4 million by 2025 from $426.2 million in 2020, rising at a compound annual growth rate (CAGR) of 9.7%.

“The lockdowns during COVID-19 highlighted the need for rich collaboration tools to facilitate communication and aid in business continuity. As offices and classrooms re-open, pervasive bring your own device (BYOD), numerous wired connection types in meeting spaces, as well as faulty and missing cables will drive demand as users seek intuitive collaboration tools to address these problems,” said Robert Arnold, Information & Communication Technologies Principal Analyst at Frost & Sullivan. “Going forward, stand-alone wireless content sharing will offer a compelling solution as the need to collaboration-enable meeting spaces grows.”

Arnold added: “Cloud-based monitoring analytics and reporting will be focal areas of development as leaders of end-user organizations seek to better understand user behavior, effectiveness of meetings and use of physical spaces.”

The demand for low-touch or touch-less collaboration that allows users to access functionality from personal rather than shared devices will present tremendous growth prospects for wireless content sharing market participants, including:

  • Mobile-first strategy: Offer a consistent user experience across networks (LAN and WLAN), devices (i.e., computers, mobile phones and tablets), and assorted OS platforms.
  • Huddle rooms and flexible meeting spaces: Ensure a seamless content sharing experience by providing several connection options (wired and wireless) that address individual user and business needs.
  • Play into convergence: Develop new capabilities internally, acquire technology or partner with third parties for solution resale and/or app integration.
  • Channel development: Focus on the key elements of an effective channel strategy, including a well-designed portal for automated billing, provisioning and solution management for partners, extensive partner education and training, and incentives based on quantity and quality of customer deals.

Growth Opportunities in the Global Stand-alone Wireless Content Sharing Market is the latest addition to Frost & Sullivan’s Information & Communication Technologies research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

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New World Report Unveils the 2020 Winners of the South America Business Awards

SA Business Press Release

United States, 2021 – New World Report has announced the winners of the annual South America Business Awards.

South America has swiftly been a region of impressive growth and innovation in the business sphere. Whilst the last twelve months have proven to be a tumultuous time for industries around the world, they have also been a time of great successes, adaptation and achievements. It’s with this in mind that we launched this year’s edition of the South America Business program.

Awards Coordinator Kaven Cooper took a moment to speak on the achievements of those recognized. “It is always a pleasure to highlight companies across the nation, especially with consideration of the challenges all businesses and all industries have faced over the last year. I offer a sincere congratulations to all of those acknowledged in this program and hope you all have a fantastic year ahead.”

ENDS

NOTES TO EDITORS

About New World Report

New World Report is an insightful and informative business news platform providing readers throughout the Americas with business advice to aid business progress, success stories aimed to inspire and trends and innovations to support business growth and continuity. Born out of the merge of U.S. Business News and Latin America News, The New World Report has a dedicated website which is updated daily with content and each month a newsletter is circulated to more than 100,000 businesses and professionals from across the region.

New World Report is brought to you by AI Global Media. AI Global Media is a digital media group launched in 2010 with 12 brands in its portfolio. The group has in excess of 600,000 pageviews across its brand websites per month (*accurate as of June 2020) and circulates newsletters and special edition magazines to more than 1.6m recipients across various walks of life.

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Beyond the Card – American Express Canada Launches Business Loans to Help Canada’s SMEs Recover and Grow

American Express

According to a recent Amex survey, 60% of Canadian Small and Medium Enterprises (SMEs) believe that with their current cash flow, they can’t maintain business for more than six months

In a first for American Express outside of the United States, the company is announcing the international expansion of its existing business financing product suite with the launch of Business Loans in Canada and Australia. American Express Business Loans, in partnership with ODX, will offer unsecured business loans of between $5,000 and $250,000 CAD to a select group of its small and medium enterprise customers in Canada. This move further showcases American Express’ continued commitment to backing Canadian businesses by providing them with the access to the capital they need to grow and recover from the unprecedented challenges of the COVID-19 pandemic.

American Express has partnered with global originations platform ODX to introduce these loans and harness the capabilities of its world-class digital platform to ensure a seamless online application and approvals process. The loans will initially be offered to a select group of American Express business card members, with more card members invited to apply throughout the year.
 
“While the Card is still a key B2B payment tool for SME customers, we’re looking to build our portfolio of offerings designed to support business owners beyond the Card,” says Paul Roman, Vice President and General Manager of Global Commercial Services, American Express Canada. “With small business owners in Canada needing our support now more than ever, this is the perfect time to focus on extending our leadership in SME lending globally.”This announcement comes at a challenging time for many SMEs. Amex recently commissioned The American Express SME Recovery Survey to better understand the current environment for Canadian business owners.
 
Survey findings revealed that:It’s been a tough year for many Canadian SMEs, and small businesses are the most vulnerable.

  • Only 40% of SMEs believe that with their current cash flow they can maintain operations for more than six months.
  • However, despite considerable challenges, many feel optimistic about the 2021 outlook, with only 12% feeling pessimistic about what the year holds for their business.
  • While many SME owners have ideas for growth and feel inspired to reinvest in themselves and their business, they see access to capital from financial lenders as an essential factor in being able to do so.
 
Many SME owners are having to make personal sacrifices to ensure their businesses stay successful throughout COVID-19.

  • One-third of Canadian SMEs have had to take extraordinary steps, putting up personal assets like their homes and businesses to survive.
  • 43% made personal sacrifices to ensure their businesses stay successful, including forgoing personal purchases and vacations.
  • When asked when they last treated themselves to a special purchase, only 35% said that they’ve treated themselves during the COVID-19 pandemic.
 
Many Canadian SMEs are looking to access loans in 2021.

  • Many Canadian SMEs are looking to access business loans to ensure survival (31%), expand (30%), innovate (18%), or cover essential costs (15%). However, many have identified roadblocks in the usual loan process.
  • In fact, while 2 of 5 of SME owners sought loans, only 1 in 5 described the process as hassle free.
 
“We are thrilled to be partnering with American Express in their efforts to help businesses grow and recover,” added Brian Geary, President of ODX. “Given the dramatic shift in customer needs and preferences during the pandemic, it’s more important than ever to provide them with a digital experience to tap into financing. We are proud to work alongside such an iconic brand in the pursuit of making working capital readily available to businesses in Australia and Canada to fuel the recovery.”

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New World Report Unveils the 2020 Winners of the North America Business Awards

north america business awards 2

United States, 2021 – New World Report has announced the winners of the annual North America Business Awards.

The last year has been a time of vast change for huge swathes of global business. Yet, despite this difficulty and the challenges that arose from previously inconceivable circumstances, we’ve seen incredible successes across all industries and businesses of all sizes. In a time where success seemed to be in short supply, these achievements became magnified and – in many ways – crucially important to recognize. It’s with this in mind that we launched this year’s edition of the North America Business program.

Awards Coordinator Katherine Benton took a moment to speak on the achievements of those recognized. “It is always a pleasure to highlight companies across the nation, especially with consideration of the challenges all businesses and all industries have faced over the last year. I offer a sincere congratulations to all of those acknowledged in this program and hope you all have a fantastic year ahead.”

ENDS

NOTES TO EDITORS

About New World Report

New World Report is an insightful and informative business news platform providing readers throughout the Americas with business advice to aid business progress, success stories aimed to inspire and trends and innovations to support business growth and continuity. Born out of the merge of U.S. Business News and Latin America News, The New World Report has a dedicated website which is updated daily with content and each month a newsletter is circulated to more than 100,000 businesses and professionals from across the region.

New World Report is brought to you by AI Global Media. AI Global Media is a digital media group launched in 2010 with 12 brands in its portfolio. The group has in excess of 600,000 pageviews across its brand websites per month (*accurate as of June 2020) and circulates newsletters and special edition magazines to more than 1.6m recipients across various walks of life.

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Debt Relief For Businesses: Where To Start

debt relief businesses

Business debt occurs when businesses struggle to fulfill financial obligations. To protect against financial loss and protect creditworthiness, many companies file for personal bankruptcy. However, business debt often hurts creditworthiness. Bankruptcy should only be used as a last resort for serious financial hardship. It’s crucial to determine if you can reduce any expenses immediately before exploring bankruptcy. You should also seek professional help with debt consolidation or debt settlement.

Debt relief for businesses is a possible solution if your company is struggling to meet financial obligations like credit card payments, overdrafts, and small loans. Plenty of businesses were affected by the COVID-19 pandemic. If you can eliminate at least 50% of your total debt then it will be easier for you to manage your company’s finances.

There are several ways for businesses to get debt relief. Some of these methods will require obtaining a loan from either a financial institution or a private investor. The loan that they provide is used to pay off the debt. However, in some cases, the creditors may provide a secondary loan to pay down the business’s obligations even faster.

Here are the things you need to know and where to start with debt relief for your business.

 

1. Take A Look At Your Finances

There are several debt solutions available for businesses but it’s crucial for business owners to assess their financial situation. They need to look at the debt that they’ve incurred and determine whether or not it will negatively impact their ability to operate their businesses. Once they know what their obligations are, they can begin to look at the options that they have for business debt relief. For example, businesses may need to obtain a loan to pay off their obligations, or they may need to sell their assets.

If your company has unmanageable debt, you can also benefit from consulting with a professional that can help you create a cash flow plan. By following a plan like this, you may be able to reduce your financial liability in the next six months. In addition to that, by reducing the amount of money that you’re spending each month on costs, you’re also better able to increase the amount of money that you’re bringing in each month.

 

2. Choose A Suitable Debt Relief Program

Business debt relief lowers expenses and enables businesses to survive. Before opting for bankruptcy, see if you could cut any expenses instantly by implementing some debt relief methods:

 

  • Tax Debt Relief

Tax debt relief is another popular solution for businesses with unmanageable debt on the table. Many businesses can save money on taxes by structuring their payables. They can also structure their payables to reflect expenses. Tax debt relief can be achieved by negotiating with the Internal Revenue Service. You can also try working with an accountant, a tax attorney, or a tax expert—you can click here for more information.

Business payroll taxes are another way that businesses can reduce their financial liability. The method of reducing the liability involves reducing the amount of payroll taxes that businesses owe to the government. Some businesses can achieve payroll tax forgiveness through tax planning and others can achieve this through having an effective payroll taxes attorney provide them with an effective strategy for reducing their tax liability. Many entrepreneurs who are looking to reduce their taxes also want to ensure that they’re meeting all of their other obligations as well.

 

  • Deferment

 Debt management through deferment is another option that can be used to reduce financial obligations for businesses. With this method, businesses have the choice to pay their loan regularly or in intervals. Deferment refers to delaying payment until you receive a collection. When a business owner delays payment, however, he faces penalties like late fees and penalties. Small businesses with limited sources of funding may need to look at other debt-relief options as deferment may be more suitable for bigger companies.

Another option for business debt relief options is an installment plan. Under this arrangement, the debtor pays monthly payments into a trust account. When the required amount has been accumulated, the money is transferred to creditors and the creditors, in turn, pay the funds to the debtor. This method has been very helpful for many businesses as it has helped them get rid of a large chunk of their debts.

 

  • Debt Consolidation

A viable solution for business debt relief is debt consolidation. Debt consolidation is one of the best methods that can be applied to manage debts for small businesses. Debt consolidation can be achieved by negotiating with different creditors to obtain a refinanced or new loan.

When you consolidate debts, you’re merging multiple loans into a single monthly payment. The payment amount may vary, but the total settlement is usually lower than individual payments combined. However, it’s still important for business owners to have a written financial plan with a debt consolidation specialist will tell you.

There are two options available when merging multiple loans. The first option is by taking out a new loan, the second option is to use debt consolidation to refinance an existing loan. Most businesses that participate in this program enjoy saving money from multiple debt payments.  

 

3. Go For Settlement

If the abovementioned debt relief programs are not suitable to restructure your business debt, your company may want to consider settlement. Debt settlement enables the business owner to eliminate a portion of the total amount of the debt. As the term suggests, this method involves negotiating with the lenders for a waiver of dues.

Most of the financial relief firms provide their services free of cost, though some firms charge an additional fee. When negotiating with the lenders, a professional firm may use debt relief tactics such as hiring experts to counter the points of the lenders. Some of these lenders may agree on reducing the total debt by a certain percentage, thereby, helping the borrower or the business owner to pay less.

 

Takeaway

When applying for a business debt relief program, you should first seek advice from professionals. These debt relief professionals are experts in the field of finance and they can provide valuable input and advice. Once you hire a debt relief consultant, you can proceed with the application process on the program best suited for your circumstances. For businesses that have suffered from recent losses, it’ll be beneficial to make use of a reliable debt relief firm instead of directly approaching creditors.

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70% Of Global Business Leaders And Finance And Accounting Professionals Lack Confidence In The Data Used To Make Financial Forecasts

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A global survey of C-suite executives and Finance and Accounting (F&A) professionals commissioned by accounting automation software leader BlackLine, Inc. (Nasdaq: BL) has revealed that less than a third (29%) of respondents are confident that the financial data they use for financial analysis and forecasting is accurate – even though a third (33%) indicate they are now under more pressure to provide an accurate picture of company performance because of the COVID-19 pandemic.

The survey of 1,300 business leaders and F&A professionals in seven markets (US, Canada, UK, GermanyFranceSingaporeAustralia) was conducted by independent researcher Censuswide and examined the impact of COVID-19 on a randomly selected sample of large organizations.  Findings suggest that while businesses now recognize the critical role financial data has to play in informing business strategy and continuity, poor visibility and a lack of access to real-time data is hindering companies’ ability to respond to volatile market changes.

When asked about the impact the pandemic has had on their organization, four in 10 (42%) respondents globally said their organization has become more focused on financial scenario planning and stress testing because of the ongoing impact of COVID-19.  A similar number (40%) said that F&A is increasingly being called upon by their boards of directors to help with scenario planning, highlighting the growing importance of financial insights as companies try to move from crisis mode into recovery.

However, more than a quarter (28%) of respondents are worried that their F&A departments are not able to provide data quickly enough for their company to respond to unpredictable market changes.  A mixture of remote and office-based working over the next 12 months could make this even more challenging; more than one in four indicate that hybrid working models will make it more difficult for F&A teams to collaborate (27%) and that this could lead to inaccuracies in financial data (27%).

Additionally, more than a quarter (27%) of C-suite executives admit that they have no visibility into financial scenario planning or stress testing at their organization, suggesting that key business leaders could be making decisions based on an incomplete picture of their organization’s financial health.

This lack of visibility is undermining trust in the data used for key financial processes and planning, particularly among the C-suite. Only around half (56%) of C-level executives said they are completely confident in the accuracy of their company’s financial data, compared with seven in 10 (71%) C-suite respondents surveyed in 2018.  When F&A professionals were asked the same question, only 30% agreed they were completely confident in the accuracy of their company’s financial data (compared to 38% of those surveyed in 2018).

When respondents who did not completely trust the accuracy of their organization’s data were asked why, the main reason (cited by close to four in 10 (37%)) was their continued reliance on clunky spreadsheets and outdated processes that leave F&A teams in the dark until month-end. More respondents felt this was a problem in 2020 than in 2018 (28%), suggesting that digital transformation initiatives in F&A still have a long way to go.

“In addition to the significant implications for people’s health and wellbeing, the COVID-19 pandemic continues to have a considerable business impact on organizations across the globe,” said BlackLine CEO Marc Huffman.  “As the situation continues to evolve, companies must rethink and reconfigure how they operate to ensure they are planning carefully for different outcomes and using robust and comprehensive data to make rapid, intelligent decisions.  Companies that are able to do this will be better positioned to survive and even thrive over the coming months.”

“Many companies are still struggling with visibility and access to real-time financial data, but there is also widespread recognition that this needs to change,” continued Mr. Huffman.  “Our research suggests that businesses leaders have recognized the value in having robust financial information and are ready to act.”

Results show that the pandemic has created a renewed urgency around digital transformation and investment in technology.  Close to a third (32%) of those surveyed said developments over the last year have made people at their company value real-time access to financial data more and a similar number (31%) said there is now more urgency to redesign core business processes.

Furthermore, when it comes to the best practices that will help companies to remain competitive over the next year, technology that enables better management and visibility over financial data has a pivotal role to play.  Just over a third (34%) said that investing in their company’s data analytics capabilities will help their organization retain a competitive edge and the same number are considering implementing or scaling automation solutions to help increase the accuracy and reliability of their organization’s financial data.

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