Secure Financing During the Crisis
Updated: Jun 11, 2020
You should start evaluating financing options now, even if your cash crunch has not hit yet. Call your banker and start the conversation.
Every company should immediately apply for the Payroll Protection Program, the centerpiece of the CARES Act. This program provides loans to small businesses to keep their workers employed during the crisis, and the loans can be forgiven if you maintain your payroll for the prescribed time period.
For companies that have been more severely impacted, you can also apply for the SBA’s Economic Injury Disaster Loan.
Consider financing your invoices, known as “factoring.” You may not have to use it, but in an emergency, you need to be able to move quickly. Think about other financing options and the possibility of raising capital outside of banks and traditional lenders.
90-Day GAME PLAN for Cash Flow part5