The COVID-19 pandemic has hurt mostly the service economy. Businesses such as restaurants, cafes, bars, gyms, and not only are in a critical situation. This article will help you with business funding options, such as a merchant cash advance, to navigate these challenging times with ease.
Merchant Cash Advance for Service Industry
Many countries, including the U.S. and China, rely on the service sector to a great extent. The forced lockdown didn’t allow many stores to continue their operation and consumers to leave their homes. Unfortunately, retail sales have sharply declined because of the COVID-19 pandemic.
On the other hand, the digital commerce sector has witnessed unprecedented growth during this period. E.g., Amazon has recently announced the company needs 100.000 additional warehouse workers.
As of Mach 11, the $349 billion stimulus support for small businesses was no longer available. Thankfully, merchants can apply to alternative lenders for the funds they need. Consider working with FirstAmericanMerchant.com, an award-winning alternative online lender and processor specializing in the high risk field. By the way, FAM is famous for its merchant cash advance: you can get it at the cheapest possible rates in the space.
The great thing about an MCA is that it’s the fastest and easiest access to the necessary working capital. Remember that an MCA isn’t a loan: it’s just a sale of your future receivables, so there’s no state regulation over it.
Coronavirus Hurting Service Sector
Small businesses make up the backbone of the U.S. economy: the country is 95% dependent on the goods/services delivered by small businesses. Now, the sector is severely disrupted by the pandemic.
Did you know the early estimates showed that 14 – 37 million jobs could disappear during the initial stage of the outbreak? This is 5 times larger as compared to the job losses in the country during the 1st few months of the Great Recession of 2007 -2009.
Globally, businesses in the transportation, real estate, as well as in the travel and tourism industries are among those businesses that’ve experienced the biggest declines in activity, according to HIS Markit Ltd, a global information provider based in London.
The recent COVID-19 outbreak is a huge burden for the service industry worldwide. Happily, there’re reputable alternative lenders offering MCAs and other types of business financing to struggling businesses in the U.S.