No matter how successful your business was pre-COVID19, it may have taken a financial hit since the start of the COVID19 pandemic. It may not matter that you have made the successful transition to selling your products or services online. You may have even become more competitive with your competition.
You now realize that now is the time to learn more about business finance solutions to keep your business intact. Business finance solutions that can help keep your company alive until COVID19 is no longer a global health threat. Please read on to learn more about three business finance solutions that can benefit your business.
Business Finance Solutions
One of the most significant business finance solutions offered during the COVID19 pandemic is the Paycheck Protection Program (PPP). The PPP is part of the Coronavirus Aid, Relief and Economic Security legislation (CARES) signed into law in March of 2020. Ideally, the PPP was intended to help businesses keep their employees on their payroll.
Many businesses took advantage of the PPP benefits, allowing them to borrow up to ten million dollars or 2.5 times their monthly payroll. Since the PPP was intended for small businesses, the company couldn’t have more than 500 employees per site location. Unfortunately, it is now time for some of these businesses to pay back their PPP loans.
It is paying back the PPP loans, which leaves many small businesses wondering if there is any way out of repaying the loan.
1. Smart Business Finance Solution
The first smart business finance solution may be the easiest. If you received a business loan, you could now ask for PPP loan forgiveness. By filling out the Small Business Administration’s PPP loan forgiveness application and providing your E-signature or consent, your PPP loan can be forgiven.
Since you’ve had to deal with business world havoc due to the pandemic, this is one of the smartest business financial solutions available to you
2. Asset-Based Financing Helps Provide Business Growth
Asset-based financing is an excellent working capital method to help your business grow and develop. Asset-based financing is when a loan lender uses assets in your business as collateral. It is the assets that help determine the amount of money the loan lender will provide.
Many asset-based loans accept your business’s accounts receivables (usually called factoring) or sometimes any of your company’s inventory.
3. Grants and Subsidies Provide Financing Solutions for Small Businesses
There aren’t many financial business solutions that offer tax-free funding through government grants and subsidies. That’s why grants and funding support are a smart business finance solution that’s hard to beat. Countries from Australia, Belgium, Demark, United Kingdom, and the USA are boosting small businesses with grants and subsidies ranging from $5,000 to $1,000,000 that companies never payback.
To qualify for a grant or subsidy, you need to fill out the grant application and prove how the pandemic losses have negatively impacted your business.
Your Final Step
Whether you’re building your online business brand or purchasing a small brick and mortar storefront, restaurant, or service, there are smart business finance solutions available to you. For every business setback, there are financial solutions. You’ll find you don’t need multiple financial resolutions.
Instead, you only need the right business finance solution for your company’s needs.