Because of these profound obstacles, many business owners are finding themselves without the necessary revenue to keep their businesses afloat. That’s where business financing solutions come in.
Currently, we suggest looking into government financing through The CARES Act, as this is a limited resource that’s on a first-come first-serve basis. However, in the coming months, pursuing alternative financing may be a useful resource as you transition your business back into normal operations.
In this post, we’ll explain why receiving business financing can help your business as you navigate the COVID-19 crisis. Here are some of our ideas on how you can utilize this financing.
4 Ways to Use Additional Financing If You’ve Been Affected By COVID-19
1. Pay Your Employees
If you’ve struggled to pay your team due to COVID-19 shutdowns or reduced revenue, having additional financing can help you keep them on the payroll. By pursuing financing for this cost, you can ensure your employees are taken care of during this uncertain time. Plus, keeping them onboard will enable you to return to normal operations faster, once conditions improve.
In addition to alternative financing, the SBA is providing financing to business owners whose goal is to continue paying their employees during this time. To learn more about The SBA’s Paycheck Protection Program, check out our guide to the PPP program
2. Pay Off Debt
Understandably, many business owners have accrued significant debt since the start of the COVID-19 crisis. Without their typical revenue stream, it’s been nearly impossible to maintain their finances, causing debt to further accumulate.
Due to this, small businesses may benefit from additional financing so that they can pay off debt and protect their business’s finances going forward. Notably, the SBA’s Small Business Debt Relief program can help with this issue.
3. Purchase Inventory
If your business can maintain operations, whether it be through online or delivery services, a lack of inventory could be challenging. To ensure that your business has enough inventory to meet demands, consider applying for a business loan. That way, you can continue serving your customer base.
4. Pay Your Bills
Just as many businesses are accumulating debt to the COVID-19 crisis, others can’t afford rent, utilities, and other bills. Sadly, puts them at risk of losing their businesses entirely.
To avoid this, applying for additional financing can help you keep your business afloat.
Conclusion: Financing Solutions Are Available to Businesses Affected By COVID-19
Small business owners never could’ve anticipated the devastating affects of this pandemic. Although it may seem overwhelming and the future of your business uncertain, know that there are financial relief
and loan programs available to you.
Have questions about your business’s financing options? Let us know in the comment section below; we’d love to help!