Are you ready to be pro-active?
The pandemic is the HOT topic, but some businesses can benefit from this HOT topic by combining creativity with available funding. Savvy management will consider retooling and perhaps re-staffing. Can you redirect your sales and marketing to online purchases? Can you provide home delivery services? Can you expand your services and your products? Can you get through the economic slowdown without further investments in your company?
If you need capital – the SBA is HOT! If you can close a loan by September 27th, 2020, you may be entitled to a 6-month interest-free grace period. I recommend you reach out to your banker to determine their interest in providing working capital supported by the SBA 7A loan guaranty program. Management must be prepared for the loan processing, which means your financial records – your balance sheet and your profit and loss statements – must be current, and you should have filed your 2019 tax returns.
Yes, profits were impacted by the slow economy in 2020, but if you have survived and need capital. Your personal credit is 680 or better, and you are a candidate for very favorable financing terms.
Rather than confront the uncertainties of the current market, some business owners are considering retirement. Their pending retirement can create opportunities for competitors and current employees who are willing and able to switch gears, find options, and take action. And, many sellers who are anxious to sell their businesses may be willing to hold paper. Cash in all markets is king. Available cash equals opportunities.
The SBA PPP loan program is closing as of August 8th, unless Congress extends the closing or approves a new loan program for small businesses. Access to capital offered through online lenders may be easy to obtain, but it is often structured for short term loans. You should seek funds that match both your capital needs and your projected repayment schedule. Ease of access is not always the best solution. Be careful to review the terms of repayment for all short-term loans.
Always stay tuned in to what is going on in your industry and your local market. Changes can work in your favor if you are prepared. You may have an opportunity to acquire real estate at a favorable price, or you may be able to renegotiate a long-term lease.
We plan to schedule online mentoring sessions with the management of companies ready to evaluate their current market options. Specialists in specific industries will be available for these consultations. A questionnaire will be sent to interested participants before confirming an appointment. Are you ready to be pro-active?