Small business owners around the country and the world are all asking the same question. Can my business survive COVID-19?
We’re all too well acquainted with the context of this question. The economy is struggling as a whole with social distancing keeping us from making use of products and services we have taken for granted. For small businesses, in particular, any momentum you may have generated has been rudely nipped in the bud.
But the question is all the more poignant for those who have bad credit. While other small business owners can rely on taking out further bank loans when this is over, those who have a bad credit record may fear this could be a final blow. It may drive them further into debt which it might seem impossible to get out of.
This is a very real concern, but there are ways to give your business a fighting chance after COVID-19 even if you have bad credit.
Here is what you need to know.
It sometimes feels like the government only cares about big corporations which makes billions of dollars in profit every year. To some extent, this is true, as these are the companies that keep the economy afloat and appealing to investors.
However, even the most fiscally conservative politicians understand the importance of small businesses. I’m not just talking about those startups with the potential to grow into huge companies. Freelancers are also being recognized more and more as an essential part of the economy.
For this reason, one of the measures the government has taken during COVID-19 is to introduce an economic relief stimulus, putting 2 trillion dollars aside for businesses struggling to cope. You can apply for a loan to get you through the next eight weeks and to help you get back on your feet once this all ends.
Small Business Loans
Unfortunately, to benefit from the stimulus program you need to get through a whole lot of red tape, and it may not be enough if you are already struggling with debt and high expenses. The good news is that there are business loans available for people with bad credit.
These small business loans usually come with high-interest rates, considering you are a high-risk investment. However, there are some excellent lenders who will lower your interest rate as your credit record improves.
Find out how to get a business loan with bad credit. If you are really struggling with a number of debts, you may even find use in consolidation loans, which will help you get a handle on the situation.
A Way Forward
COVID-19 has disrupted everyone’s lives and is particularly hard on those of us with small businesses. Momentum is hard to generate, and this situation could leave us in debt. But there is a way forward.
The government is trying to take care of us, even if it hits some systemic and organizational issues along the way. Responsible lenders also aim to help us as much as possible.
Don’t lose hope during these hard times. Your business can survive this. You may just learn some great lessons in how to adapt and hopefully, it will teach us all to be better prepared for future crises.