• Twitter
  • LinkedIn
  • Facebook
  • Instagram
  • Youtube
Login  | Call now: (800) 780-7133
Kapitus
  • Problems We Solve
  • Products We Offer
  • Partner With Us
  • Blog
  • APPLY NOW
  • Search
  • Menu Menu
Life-saving measures for small businesses on the brink of closure

Life-Saving Measures for Small Businesses on the Brink of Closure

October 12, 2020/in Operating Your Business, Strategy/by E. Napoletano

No matter what part of the country you’re in, you have small business-owning neighbors struggling to keep the lights on. With erratic reopening plans, caseloads that still won’t decline, and the need for social distancing until there’s a widely-available vaccine, countless businesses have been hit hard.  But what can be done?  Are there any life-saving measures for small businesses on the brink of closure?

If you’re a business owner in this situation, you could find enough relief to keep your doors open and critical staff employed using one (or all) of the options below.

Review Your Expenses

While you might have already done this back in March, it might be time to review your expenses again.

Instead of eyeing luxury expenses this time around, put an eye toward ways to discontinue some low-margin services and supplies until traffic gets back to pre-pandemic levels again. This could mean paring-down your menu, hiring a delivery person instead of subcontracting to meal delivery services, liquidating inventory at a deep discount to reduce warehouse space, or even limiting workdays to the most profitable days and hours.

When evaluating expenses to cut, don’t think of these expenses as permanently on the chopping block. Instead, you can bring them back and build back up when life and revenue pick up speed once again.

Get Creative With Payment Arrangements

If you’re strapped for cash, your vendors may be as well. Reach out to your accounts payable and start a conversation about mutually-beneficial payment arrangements.

For example, if you can promise $X toward your invoice every two weeks, that’s better for your vendor than zero dollars. Your vendor gets a predictable cash flow, and you get a reasonable payment arrangement.

If you and a vendor do mutual business (they invoice you and you invoice them), set up a call for an invoice review. Explore creative options like applying their invoice for $1000 to your invoice for $800. You’ll still owe them $200, but it’s a lot better than $1000. This is a simple solution that often slips through the cracks because your AP and AR systems might not communicate with one another.

Explore SBA Loan Options

While the Paycheck Protection Program is no longer offered, there are three other SBA loan options you can explore for a much-needed cash infusion:

  • Economic Injury Disaster Loan (EIDL): If you’re experiencing a loss of revenue due to COVID-19, you could be eligible. Terms are 3.75% interest (fixed) for up to 30 years with no pre-payment penalty. You can even defer payments for up to one year (but interest will still accrue).
  • SBA Express Bridge Loan: If you have an existing relationship with an SBA lender, you may qualify for a loan up to $25,000. These loans can be regular term loans or bridge the gap between today and approval for your EIDL Loan. You just need to reach out to your existing SBA lender to inquire.
  • SBA Debt Relief: If you have an existing SBA loan and have trouble making payments due to COVID-related financial hardship, this program can bring you relief. Eligible loans include “7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020″ per the SBA. If you qualify, the SBA will pay any principal, interest, and fees on your loan for six months.

Have a Candid Conversation with Your Bank

Finally, it could pay to sit down and have a candid conversation with your bank. Your bank doesn’t want to lose your business or see you default on lines of credit or other loans. You could find they’re willing to work with you if they know your full financial picture.

There aren’t any guarantees that your bank could come through with funds or reprieves from payments due.  But, if you don’t start the conversation, you’ll never know what’s possible.

Have any other tips or advice on life-saving measures for small businesses?  Let us know.

https://kapitus.com/wp-content/uploads/life-saving-measures-for-small-business-on-the-brink-of-closure-2200.jpg 1466 2200 E. Napoletano https://kapitus.com/wp-content/uploads/Kapitus_Logo_white-2-300x81-1-e1615929624763.png E. Napoletano2020-10-12 15:51:282023-09-19 15:06:45Life-Saving Measures for Small Businesses on the Brink of Closure

LATEST FROM KAPITUS

  • Small Business Loan Application Checklist
  • Getting a Business Loan with Bad Credit
  • Traditional Bank vs. Alternative Lender
  • Understanding Business Loan Requirements
  • Types of Small Business Loans and How to Choose One

Subscribe To Our Blog For More Tips On How To Grow Your Business

Categories

  • Automotive
  • Being a Business Owner
  • Budgeting
  • Business Ownership
  • Business Stories
  • Cash Flow
  • Commercial Cleaning
  • Construction
  • Credit
  • Dentists
  • Featured Stories
  • Financing
  • Industry Challenges
  • Inflation
  • Information Technology
  • Inventory Management
  • Manage Your Money
  • Marketing Your Business
  • Medical Practices
  • Offline Marketing
  • Operating Your Business
  • Performance
  • Plumbers
  • Process
  • Restaurants
  • Strategy
  • Taxes
  • The Economy
  • Trucking
  • Uncategorized
  • Vendor Management

About Us

  • Media Center
  • Team
  • Careers
  • Events
  • Success Stories
  • The Kapitus Difference
  • Developer Documentation
  • Blog
  • Privacy Policy
  • Terms of Use

Products

  • Revenue Based Financing
  • Helix® Healthcare Financing
  • Business Loans
  • SBA Loans
  • Line of Credit
  • Invoice Factoring
  • Equipment Financing
  • Purchase Order Financing
  • Concierge Services

Contact Us

  • (800) 780-7133
  • Email Us

Signup For Our Newsletter

Copyright 2023 Strategic Funding Source, Inc. All rights reserved. Kapitus and the Kapitus logo are registered trademarks of Strategic Funding Source, Inc.
  • Twitter
  • LinkedIn
  • Facebook
  • Instagram
  • Youtube
Scroll to top

This site uses cookies to store information on your computer. Some are essential to make our site work properly; others help us improve the user experience. We encourage you to read Kapitus’s Privacy Policy to learn more about how we use cookies and how we may collect and use visitor data. By continuing to use this site, you consent to the placement of these cookies

OK

Cookie and Privacy Settings



Privacy Policy

This site uses cookies to store information on your computer. Some are essential to make our site work properly; others help us improve the user experience. We encourage you to read Kapitus’s Privacy Policy to learn more about how we use cookies and how we may collect and use visitor data. By continuing to use this site, you consent to the placement of these cookies

"*" indicates required fields

Step 1 of 10 - TELL US ABOUT YOUR PRIMARY FINANCING NEED

10%

Find the right financing product for you.

Answer a few questions and we’ll match you with the best product based on your needs and current situations.

I need financing to:*

How We Make Getting Business Financing Easier for You

If you are looking to determine the best financing option for you, our matching tool streamlines the process and arms you with information that you can use before you apply. To match you with your best options, we ask you to answer a series of basic questions about your existing and future needs, current financial health, and your financing preferences – including amount to be financed, ideal terms and financing urgency. Our system then finds you up to four financing options to fit your needs. Once you’re matched, you can expect to be contacted by one of our financing specialists to help you navigate the application and selection processes.

How It Works

  1. Answer a few questions. You let us know some basic information about your financing needs, so we can find a match.
  2. See your financing matches. You'll get matched with up to four financing options based on your answers.
  3. Apply for financing. You can apply for all of your financing options by completing one simple application and providing a few documents.
  4. Get an Advisor: You have the option to be assigned a financing specialist to help guide you through the application process.

Find your financing match

Why do we need this information?

Each financing product has its own minimum and maximum requirements around the amount of money that can be acquired through that option.

Find your financing match

My Industry is:*

Why do we need this information?

There are financing options created to meet the specific needs of particular industries.

Examples that fall within this industry include

  • Business Accountants
  • Marketing & PR Agencies
  • Commercial Cleaning Companies
  • Printers
  • Human Resource & Payroll Firms
  • Office Supplies Organizations
  • Salons/Spas
  • Gyms & Other Workout Studios
  • Pet Services Companies
  • Personal Accountants
  • Home Cleaning Companies
  • Residential Landscaping

Find your financing match

I have not yet started my business

Thank you for reaching out to Kapitus. Unfortunately, our financing products are only available for existing businesses and we will not be able to help you at this time.

Why do we need this information?

The amount of time your business has been in operation is a deciding factor in the type of financing options available to you.

Find your financing match

Why do we need this information?

Each financing product has its own minimum requirement for the amount of revenue being brought into a business on either a monthly or an annual basis. In addition, your monthly and/or annual revenue can dictate the length and term on your financing option.

Find your financing match

I would like to pay off my financing in:*

Why do we need this information?

Each financing product offers different payback lengths and terms.

Find your financing match

I need financing for my business:*

Why do we need this information?

Each financing product has different paperwork and underwriting processes. As a result, the amount of time it takes to get approved for one type of financing over another can vary significantly.

Find your financing match

Do you have an existing loan?*

Find your financing match

My personal credit score is:*

Why do we need this information?

There are financing options for every credit type, however your personal credit score will determine your eligibility for each financing type

We’re finding your match

"*" indicates required fields

Step 1 of 4 - Tell us about you

25%

Sign up for the Kapitus Partner Program!

Sign up for the Kapitus Partner Program!

Sign up for the Kapitus Partner Program!

I would like to join the Kapitus Program as a:*

Sign up for the Kapitus Partner Program!

"*" indicates required fields

Whether you want to learn more about our financing options, are interested in becoming a partner or just have a general question, we’re here to help! Simply fill out the form below and we’ll get it directly into the inbox of the right person.
This field is for validation purposes and should be left unchanged.