It appears as though retailers have another obstacle to overcome, as organized crime activity has picked up in the past three years.
Small- to medium-sized retailers that are victimized by crime could see available capital slashed significantly, which could lead to a need for inventory financing.
The ninth annual Organized Retail Crime Survey found that 93.5 percent of retailers were a victim of an incident in the past year, according to the National Retail Federation.
Meanwhile, 81.3 percent of retailers said organized retail crime has jumped in the U.S. over the past three years.
"We are extremely concerned by the organized patterns that are taking place in the retail industry right now as these crime gangs continue to find ways to maneuver the system," said NRF vice president of loss prevention Rich Mellor. "Though retailers continue to make great strides in their fight against organized retail crime, savvy, unconscionable criminals are selling stolen merchandise for a profit that doesn't belong to them."
Small- to medium-sized retailers can ill afford to be a victim of crime, as sales have been slow so far this year, the U.S. Department of Commerce reports.
Should businesses be hampered by crime, or slow sales, inventory financing could prove to be beneficial. In times where available capital is limited, retailers can struggle to obtain a loan from a bank, but they still need to operate at normal levels.
To help out, asset-based lending can provide them with a revolving line of credit, which can be used during times where cash flow is slow and capital isn't available. Inventory financing can also help companies that need assistance keeping their shelves stocked.