Being proactive with your business cash flow is essential as we are waiting to see what the developments of this chaotic situation are going to be. I have been contacting our banking institutions’ sponsors and alternative sources of funding for small businesses
Don’t delay and be proactive with your business cash flow
- Don’t delay to be proactive about your cash flow and your business. Your situation will turn sour pretty soon and your family will suffer.
- Talk to your financial institutions and see if they have any help for your business cash flow based on past performance. Some banks are only tending to their own clients and others are taking new clients as well. Shop around if your bank says no.
- Apply to all sources you can including SBA Loans but remember those will take time. It’s better to have business cash flow that you don’t touch or need than waiting for a miracle to happen.
- Do not, I repeat, do not touch your savings unless absolutely necessary. Your savings is the only guarantee you can show to your bank that you were a solid business and that you are just affected by this situation. We don’t know how long this will take and your savings should be your last resort.
- If you cannot go the traditional route, apply to alternative sources now and if you get a grant or federal loan later you can always pay your first loan off in advance with no penalty. However, be aware of scams and shark loans! Only work with alternative funding that you know or have been recommended.
- If your credit is not so good, our partners at National Biz are fantastic at approving quickly and with less conditions than banks.
Finally, be proactive with your business cash flow and think of ways your business can still exist in the next three months. For instance, if you are a retail or personal service business, contact your clients and ask them if they would buy a gift certificate with no due date.
Go for small amounts: $5, $10, $15 can make a pool of clients that might or might not use the gift certificate in the future. Ask for their support by doubling the amount of the gift certificate at the time of service. (if it’s $5, you will give them $10 value).
You might be interested: Beyond COVID-19: Prepare your entrepreneur skills for the survival of the fittest
Organize other contests, prizes, online auctions and anything that can get their attention at this time. Remember everybody is stuck at home and going berserk on social media!
To talk to Valley Bank, please contact Fatima Pearn FPearn@valley.com
To talk to Investors Bank, please contact Carlos Yepez cyepez@investorsbank.com
To talk to PNC Bank, please contact Samreen Malik, samreen.malik@pnc.com
To talk to National Business Capital and Services, please go to their site National Business Capital and Services.
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