As the Coronavirus pandemic slowly comes to an end thanks to the global rollout of the vaccine, many individuals are breathing a sigh of relief.
While the slow reopening of the world’s businesses and attractions means that we can now see others in the flesh and do the things we like, for many business owners, there is still plenty to be worried about.
The virus has had a significant impact on the business landscape, and over the coming months, companies will have to adapt to these challenges.
For many organisations, the challenges are already having an impact. Companies that couldn’t adapt quick enough to the pandemic and the lockdowns it caused have faced many financial hardships.
Many businesses, particularly in the retail market, have already folded because of the virus, and the future remains uncertain even now.
Even if you’re in one of the lucky industries that have survived and thrived during the pandemic, such as the remote software market, you still have a tough road ahead. As such, it’s safe to say that no business can afford to be complacent during this trying time.
If you want your business to survive in the coming months, then you need to make sure that you have a plan of action in place and that you and your team are flexible and work tirelessly to ensure the ongoing success of your business.
Whether you’re recovering from a lack of sales during the pandemic or attempting to adapt and grow after the many changes we’ve seen over the last 12 months, you need to ensure you have financing available to you to support your company.
If you’re unsure about where you can get financial support in 2021 for your business, then here are a list of tips to help you find the right business loan options.
See if you can get Coronavirus finance support from the government
As the pandemic has caused issues for almost every industry and business in the world, many governments, including the UK’s, have offered support for businesses to keep their economies moving. This support might come in the form of an interest-free loan, a grant or a tax reduction. It could help you to deal with the challenges your business faces without paying a lot of money for financing. Some options are industry-specific, so you can find ones that will help you to deal with issues that your market has faced, such as office closures.
As these solutions are cost-effective and backed by the government, they should be your first port of call when searching for financial support to get your business through these trying times. A financial solution from the government is safe and cost-effective, so it will be a great way to help your company to overcome the issues it has already faced, and that will come even as the pandemic slowly eases.
Check out all of the UK government’s business support to help companies overcome the challenges the virus has caused. You’ll be able to learn what financing solutions your firm is eligible to apply for and then work to get them quickly. Each option is unique and has specific terms and timelines, so you’ll need to review these too to ensure that you make the most of the options that your organisation is eligible for.
Check what solutions your bank is offering
It’s not just the UK government that is helping companies: many major banks and financial institutions have also offered support for businesses during these trying times. This could involve extending overdrafts for corporate accounts or offering low-interest loans. Each bank and lender is unique, so check what they are offering and whether it could benefit your business.
The best way to find out if you can get help from your current bank is to speak to them. You can then see what support they are offering for business account holders such as yourself. If you find that you’re not being offered the support you need or that another bank has a better financial support package for corporate clients, then you could consider moving your account.
Explore the best business loans from private lenders
Some businesses might struggle to get financial support from banks and the government quickly enough to ensure their ongoing success. Additionally, if your business isn’t struggling because of the pandemic but just needs some extra capital to finance future expansion, then a loan from a private lender might be the best choice for you.
If you’re looking to finance future expansion and to deal with the changes that the pandemic has bought to your industry, or deal with urgent financial problems, then check out private lenders that specialise in business loans.
When looking at business loans, make sure you find the best deal on the market. Brokers such as Capalona can help you to search the business loans on the market from their database of trusted lenders and find one that suits your needs. With the help of a dedicated business loan broker, you can save time and arrange a cost-effective financing option that suits your organisation’s unique requirements.
Collaborate with existing creditors to get a better deal on any current debts
If your business already has debts or financial obligations, such as rent, that need to be met, then you could consider speaking to your creditors and seeing if they are offering any support to firms such as yours that have struggled over the past few months.
Communicating with your creditors could save you a lot of time and hassle and allow you to create a new agreement that benefits you both. After all, the original terms of your agreement will have probably been made before the pandemic began- times have changed, so your financial arrangements should too.
For example, if you run a hospitality business and are struggling to pay rent that is owed, you could discuss the debt with your landlord to see if they can give you longer to pay it back. You could also explore whether they are happy to cap the number of late payment fees that you owe them. If you’re a good tenant or business associate with a long history of paying on time, then you might find that other business leaders will be sympathetic to your plight and willing to help you out, but they won’t unless you ask.
Don’t be afraid to use credit cards for short-term or Bridging Financing
For small yet urgent purchases, or to deal with minor cash flow issues, consider using credit cards instead of short-term business loans. Many corporate credit cards have 0% finance if the balance is paid off promptly, so you could consider paying for an item or service on a corporate credit card, then paying the sum back when the bill comes.
By using a business credit card with zero interest over the short term, you’ll save yourself from paying extra interest. You’ll only need to pay the balance, which means you’ll save money and be able to finance small purchases even if your business is struggling for cash. Make sure that you check the terms of your corporate credit card before you start using it so that you don’t end up being surprised by extra fees when the bill arrives.
Consider leasing vehicles and assets instead of buying them outright
Business finance doesn’t just mean loans and grants; it also encapsulates leasing options, which can help you to save money when acquiring new machinery, vehicles and equipment for your organisation. Leasing is a form of long-term rental, where you pay a deposit and then pay the depreciation on the item for a set time.
Once the contract is up, you can return the item, or in some cases, pay the remaining value to the leaseholder to keep it. This makes it a cost-effective option that could save your business money and allow you to have access to cutting-edge assets.
So, if you’re looking to get new physical assets to your organisation, then you should explore leasing options. Leasing is particularly useful when the asset is valuable and prone to depreciation in value, such as cars and other vehicles.
There are many benefits of leasing cars for your business, so consider checking out the best business leasing deals available. Once you’ve done your research, you can then find one that will help your organisation to get access to the transport it needs without spending a lot of money in one go. You can also lease other high-value items, such as manufacturing equipment. As such, there’s a business leasing option for almost every organisation.
The coming months will be a challenge for businesses across the corporate landscape, but with the right financial support, you can adapt and grow. If you want to succeed through this difficult time, then you need to make sure you have enough cash in your organisation to finance expansion and adaptation, as well as to cover existing financial obligations. Use these practical tips to find the best way to finance your future after the pandemic.
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision.