Some Lenders are beginning to open their doors, and their coffers, to businesses in need of working capital. However, the COVID-19 impact on lending guidelines has been brutal.
Lenders’ guidelines for these types of loans are typically tighter than pre-COVID, and every Lender requires a business applicant to provide a COVID Impact Statement.
Underwriters are taking a close look at how businesses plan to survive the continuing pandemic, especially diligent on management experience, cash reserves, equity, and business planning for pandemic-response.
Today, let’s look at some industries and businesses we expect to thrive and survive the COVID-19 crisis.
Logistics. The pandemic panic in March and April exposed the weaknesses in supply chains, especially for groceries. But the resiliency of the industry became quickly apparent with the exponential growth in demand for home delivery of goods from online shopping excursions as so many people found themselves locked-down at home.
Warehouses, sorting equipment, storage accessories, forklifts, robots, long haul trucks and delivery vehicles all have multiple sources of financing available to maintain and grow during the pandemic.
Professional Writers. Yes, writing for business, whether it’s email newsletters, website content, or White Papers, writers can thrive during COVID-19, especially with the trend towards remote working.
The downside to being a professional writer during this time is the influx of amateurs hustling for a work-at-home gig overwhelming the ranks of people you’re competing against. If you’re a professional writer with Accounts Receivable from reputable business clients, there’s financing available to you to help you grow your business. And, if you haven’t already applied, the SBA Economic Injury Disaster Loan (EIDL) is still available, even if you’re Self-Employed and you file a Schedule C as a Sole Proprietor.
Manufacturing. Manufacturers can thrive during COVID-19 with three fundamentals in place:
- COVID safety protocols for employees
- Supply surety
We know of one manufacturer who promptly converted his business to a COVID pandemic perspective by manufacturing components of PPE for health care frontline workers, notably plastic face shields. He later enhanced his planning to create the decals for grocery stores that direct customers with one-way arrows and six foot social distancing location markers.
A manufacturing firm that can demonstrate its resiliency during the crisis, its ability to protect workers, and the confidence in obtaining necessary supplies for manufacturing processes is sure to find Lenders willing to provide financing, including for Accounts Receivable, Business Lines Of Credit, and Equipment financing.
Online-Motion. We created this category at Aurora Consulting to define any kind of business demonstrating incredible pandemic-related-resiliency by either moving its business online where it didn’t exist before, or bolstering an existing online presence. 70% of Small Businesses have NO or minimal online presence.
The COVID-19 pandemic clearly demonstrates the need for your business to move online, to create product/service opportunities for consumers to engage with you remotely, and to integrate product deliveries with successful delivery systems. The Small Business demonstrating sincere “Online-Motion” will find Lenders willing to provide financing providing a recently revised business plan demonstrates the strategies for success to survive. Our firm Bridge Street Business Plans assists Small Businesses with this vital aspect.
Key Points of Financing Your “COVID-SURVIVING” Small Business:
- Management experience: substantial heft with more than three years’ experience.
- Equity: Whether it’s cash liquidity, real estate collateral, or other convertible equity, expect a Lender to want at least 30% equity.
- Credit. High credit scores, in excess of 700 for principals of the business.
- Cash Flow. Demonstrate how your business is cashflow positive during and through the pandemic.
- ROCK SOLID Pandemic Business Plan. State the case for how your business is surviving now, how you will succeed through the crisis with a focus on strategies, profit centers, and an expanded vista that takes into account the new paradigm of limited customers in-store, remote work, online shopping, employee protections, supply-chain strength, and utilization of delivery options.
At Aurora Consulting we’re doing our part to help your Small Business survive COVID-19 with the following services:
- Flat Fee Financing Consultation. $750 gets your business a thorough review of your existing business plan, financial statements, and credit report. We’ll then advise on the viability of finding Lender financing, whether that’s today, or in the future with our suggested strategies.
- Bridge Street Business Plans. We created Bridge Street Business Plans to assist our financing clients with a necessary component of a successful business credit application. We understand how to update your business plan to respond to the COVID-19 pandemic “pivot.”
- Innovative Financing Products. We know the Lenders who will lend and we know how they will lend.
- SBA Economic Injury Disaster Loans. These loans are still available and we’ve become experts in this loan process.
Email us anytime to find out more about what financing products can help you become resilient to thrive beyond COVID.