Get Funding To Help your Small Business Right Now at Low-Interest Rates
- June 16, 2020
- Written by : REIL Capital
It is one of the most difficult times for businesses all around the globe with COVID-19 creating financial havoc for most businesses. A report from the National Federation of Independent Business(NFIB) dated back in the early days of the crisis on March 30, stated that 92% of small businesses admitted to suffering negative effects of the pandemic while only 5% said that there were no effects on their business. While recovery for most small businesses immensely varies by industry. It is still imperative to consider an exit strategy and get back on track as soon as the economy retains its normal state.
While many small business owners think that debts can cripple their organization. It is not the case if you make a smart choice for business finance. Among all the funding options available. Most small businesses prefer SBA loans for their finance requirements. Also, with the government cutting down on annual interest rates due to Coronavirus. This might be the best time to get a financial business loan. But before you move ahead with the application and get back on track, here are a few things to consider.
Assess the Financial Damage
To start with a recovery plan for COVID-19. First, find out how deep it has hurt your small business. Start with hard numbers such as maintaining cash flow statements with simple profit and loss numbers scrawled. Then compare them to the last year’s numbers and see by how much percent is your business down this year. There are only 3% of businesses, according to NFIB, that said that they have made some profit as compared to last year.
Apart from the hard numbers about sales, profit, loss, and cash flow. First, look for other damage your small business took during the pandemic. These can be the resources you may have to lay off or the cut in your advertising or marketing budget or anything else. As soon as you assess all the losses that you first need to cover, move on to the next step.
Determine the Type of Funding Required
It is quite normal that you may need some working capital to start your business operations again unless you had a good backup amount while going into the pandemic. After assessing your financial damages, there are several options to consider for financing your small business. The SBA or 7(a) loans are the best choice as mentioned earlier, apart from which you can also check out the Paycheck Protection Program from SBA, which has been designed to help small businesses struggling to retain their employees during the pandemic. Another program named the Economic Injury Disaster Loans is released by SBA if you need short-term financing for your small business for things other than employee retention.
The only downside of these loans is that it can be a real headache to get a loan from SBA. That leaves companies with two options- banking and non-banking financial firms. REIL Capital can help small businesses from varying industries to get back on track. Also that too with an entirely online application. Including quick approval, low-interest rates, and a number of funding options to choose from as per the requirement. Get funding to help your small business right now.