According to the Washington Post some entrepreneurs are facing delays in tapping in to emergency funding from the Small Business Administration. The article goes on to say that some businesses may well go under. This is entirely understandable and really isnโt an apocalyptic scenario. However, if your business is affected to the point it may go under, it really is an apocalyptic crisis.
Of course there will be delays because there is unprecedented demand being placed on the SBA. To be fair the SBA it did announce quite quickly that emergency funding was being put in place in the wake of the current global health crisis. The SBA did caution that each state must seek and receive a disaster declaration before the SBA can start lending in that state. This is required by law. It is an administration hold.
1. Stimulus payment
Currently the situation for many small and medium sized businesses is that cash flow is either severely down on normal levels, or has been reduced to zero. Millions of employees are unable to work but government help is at hand for all citizens legally domiciled in the USA. The government is about to send $1,200 to every citizenโs bank account as part of the stimulus package. If you are a small business owner struggling in the downturn, some or all of the money can be used to help stave off potential closure of your business.
2. Become funding savvy
Now is the time to becomemore savvy about sourcing funding. Bank of America and J.P. Morgan Chase for example have set aside billions of dollars in additional funding support for small and medium sized businesses. In the event of your local branch of those banks being closed, you can navigate to their websites and apply online. It is a simple process and funds can be in your business account within 48 hours if approved.
3. Facilitator loans
Facilitator companies such as Become use technology to put business owners in touch with lenders with whom they may not have been able to access. Indeed, such companies are able to increase by 20% or more the chances of successful financing applications compared to mainstream lenders. Lenders can make decisions quite quickly, so it is well worth checking out.
It is also worth noting that facilitator companies are typically able to source lenders from whom clients are able to access much better, more refined targeted funding which arenโt โone size fits allโ lending solutions.
This is becoming increasingly popular, so much so that โalternative lendingโ according to a Forbes article alternative lenders are rapidly entering the mainstream.
4. Credit card borrowing
If you have one or more credit cards, do not be afraid to use them as a source of funding. it may not be the best solution, given the higher interest rates charged on credit card debt. However, with up to 0 days to settle, strategic use of credit cards will be a lifeline for many hundreds of thousands of small business owners.
5. Overdraft
If you have an overdraft facility arranged with your bank, use it but as sparingly as possible. The interest rates on overdrafts can be extortionate, and overdraft borrowing isnโt the most efficient method. However, if the facility is available, make strategic use of it.
If you need funding quickly the aforementioned are worth following up. There are other ways of sourcing finance but if you need a rapid injection of funding, these are the best routes to take to access what you need.
Article Submitted By Community Writer
