Business Interruption and COVID-19
With stores shutting down to control spread and stocks plummeting at alarming rates, it’s hard to ignore the economic repercussions of COVID-19.
No wonder on March 2, 2020, the Federal Reserve announced a 50 basis-points reduction in Federal Funds interest rates—the largest rate-cut it has made since 2008. The recent decrease places interest rates somewhere between 1.0 percent and 1.25 percent.
But while that desperate move may try to hold the fort for America’s economy amid the Coronavirus crisis, citizens and businesses are still victims in many ways.
“A broken Supply Chain.”
Q1 of 2020 has been a dreadful span for many sectors, but no industry is feeling the heat of the deadly virus like travel.
United Airlines has been reducing flight rates to areas where COVID-19 is widespread, like Asia and Italy. Not to mention the dipping stocks among cruise industry giants like Royal Caribbean and Carnival.
And because of that, hotel and accommodation service providers continue to suffer as customers cancel bookings in fear of the Coronavirus.
One thing, if your micro business imports goods from China, then your supply chain may be a mess right now.
Restaurant owners have also reported less traffic than ever as people keep off the street and get more cautious of public places.
And on a larger scale, our manufacturing companies can no longer source raw materials across borders because of international travel restrictions.
3 Ways to Keep Your Business Alive amid the Coronavirus Pandemic
For many small and medium entities, the challenge is to get the funds to stay on their feet when cash flow is a problem.
And because we don’t know how long Coronavirus will be around, you need finances that can keep you up and running for a month or two.
Here are your options;
- Merchant Cash Advances offer Instant Funding
MCA providers allow your business to borrow a lump sum amount in exchange for its future transactions.
Most MCAs are characterized by a simple application process and quick hassle-free acceptance. A business cash advance even with bad credit is an excellent way to avoid piles of paperwork, long waits, collateral requests, and a thorough credit check.
- Seek a micro-business loan
With interest rates lower than ever, securing a micro-business loan is not a bad idea—but only if you have what it takes. You can use the lump sum to fund operations as we await way forward on COVID-19.
- Try a microbusiness line of credit
Use a line of credit if (1) you’re not after huge amount and (2) you don’t want to pay interest. Still, it is an excellent way to source that instant capital when times are tough.
Don’t stop marketing!
This is the time to be active. Don’t stop marketing your business because everyone is on lockdown. Engage your customers using online channels and complete as many sales as you can as long as it doesn’t put you or others at the risk of Coronavirus.Get Started Now