Small Business Funding Options During the Coronavirus Crisis

Progressive Business Capital - Blog - Small Business Funding Options During the Coronavirus Crisis

One of the most impacted segments of the population hit hard by the Coronavirus are business owners. Due to widespread social distancing and quarantine requirements, the liquidity previously present in the marketplace suddenly dried up. What is especially problematic about this drastic change is that it came suddenly and without warning. If you as a business owner are grasping at straws to find ways of funding your business, here are a few essential things you should know before making any decisions.

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Small Business Funding Options and Considerations During the Pandemic

Watch Out for Fraudulent Funding

One unfortunate aspect of any tragic situation is that there are always groups of people looking to exploit those who are desperate. When searching for business funding during the Coronavirus pandemic business owners are optimal prey for these fraudsters. It is vital to be leery of any unsolicited attempts to provide funding to ensure validity.

Check the Details of the Funding

If the pandemic has left you in a state of shock and you are struggling to make ends meet, it is crucial to understand the details of any business funding option fully. Jumping into a funding method without fully understanding the details and making necessary considerations will only lead to more headaches moving into the future.

Select the Proper Business Funding Option

When trying to choose the correct type of business funding, there are various options available that all provide different advantages. If you need quick cash to cover expenses in a hurry, a cash advance could provide the business funding you need. For more long-term and substantial financial needs, options such as small business loans provide an advantage to business owners.

Explore Government Options

Because of the damaging effects that coronavirus has had on business owners and the economy, there are numerous government business funding options at a business owner’s disposal. Typically, these options can work to relieve financial strains experienced by business owners. Examples of these business funding options include Economic Injury Disaster Loan Advances and SBA Debt Relief.

Consideration for Business Funding During Coronavirus

Before entering into any agreements and leveraging any business funding during the coronavirus, there are a few guidelines and principles that you should follow for the best results.

Communication with the Lender

If you elect to utilize business funding—such as a cash advance—then you should always talk to your lender if you encounter any issues. Discussing difficulties with repayment will allow the lender to offer options to remedy the situation. However, if you do not have this discussion, then the lender cannot know what your situation is and cannot help.

Don’t Take on Too Much Liability

As a business owner, the choice to accept business funding should be made carefully. Making a hasty decision may put money in your hands now but could cripple your business in the long-term. It’s critical to avoid that costly mistake. You should be diligent and take an in-depth look at your financials to make sure you can handle the added liability that comes with business funding.

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