The situation with COVID-19 worldwide has evolved rapidly affecting millions of consumers and businesses struggling to cope financially. Authorities in several countries have given direct instructions to close businesses, and a reduction in orders and staff due to the COVID-19 infections have negatively affected the businesses. A study conducted by the United Nations showed that over a thousand companies from eight countries in four continents had to shut down operations, temporarily close their businesses due to restrictions, and devastatingly, permanently close its doors.
The COVID-19 pandemic has hit small and medium scale businesses the hardest. These businesses need viable solutions and support to survive and continue to contribute to the global economy. If you are a business in need of financial assistance such as securing a loan, you may consult commercial finance providers. The pandemic’s impact has disrupted the cash flow of small and medium-sized businesses, and commercial finance providers recognize the need to provide more flexible schemes so businesses can get back on track.
Alternative Financial Solutions
Suppose you do not want to avail of a small business loan from a bank or you may not meet the requirements to secure a bank loan. In that case, commercial finance providers are non-bank lenders that can provide a wide array of business financing solutions that traditional banks may not offer. There are still several unanswered questions about how the banking and finance industry can support small and medium-sized businesses with disrupted cash flows, inaccessibility to extra finances, and lack the basic knowledge and guidance to keep a business afloat during a pandemic which is where commercial finance providers can be of assistance.
Several small and medium businesses that availed of loans from commercial finance providers have allowed them to continue business operations and ensure a better chance of surviving the pandemic. There are numerous schemes available that target various types of businesses delivered by different companies. The starting point is sitting down and consulting with commercial finance providers to carefully consider which scheme fits your contingency plan. The finance industry has been committed to supporting businesses through contingency plans offered at various rates. A business owner should present a projection plan that is comprehensive and realistic. If your business has a history of debt and liabilities, one must be transparent and demonstrate the capability to commit to the safety measures that will be implemented.
Uncertainty of the Pandemic
Many people are still struggling financially, and there is a prolonged economic uncertainty as there is still little knowledge on the full impact of the ongoing pandemic which is why commercial finance providers are adapting and providing alternative options to support different businesses. The finance industry wishes to support all possible customers and minimize the damaging effects of the lockdowns and business restrictions. Several solutions have been extended, such as cash grants to support existing wages, training, productivity improvements, and emergency interest-free loans.
Providing these alternative financial solutions allows the business to improve productivity and be more competitive. Nothing could have prepared any business for the uncertainty of the COVID-19 crisis. The pandemic has been traumatic to business owners and employees. The impact on the business continuity, labour force, revenues and occupational health and safety has been overwhelming, but surely the business sector will get back on its feet with more innovative problem solving and community support.
