Tips for Improving Business Finances During the Pandemic

April 12, 2020

The coronavirus pandemic has swept the world, putting many companies out of business temporarily until further notice. If you’re a business owner and were told that you needed to close, you should work on taking care of your finances until you’re able to take on customers. In doing so, you’ll be able to keep your company afloat without the headache of eventual failure simply because you were made to close down for the time being.

Look for Refunds and Reimbursements

Now is a good time to look into getting refunds and reimbursements that are owed to you. This might include a tariffs section 301 refund, or it might involve returning something that you no longer need. By making use of these refunds, you’ll be able to bring in a significant amount of money that can be put towards keeping the business operational once you’re allowed to reopen.

Consolidate or Refinance Debts

If you’re currently in debt, it can be a struggle to try to pay everything off if you aren’t actually bringing in any money. The best way to handle this particular problem is to either consider consolidation or refinancing. Consolidating debt means that you’ll lump every single one of your debts onto one single account. This lowers your monthly payments and makes it easier to afford. Refinancing is great for business owners who have loans that have high-interest rates and short repayment terms. You’ll take out a new loan that has both a lower rate and longer-term to lower monthly dues.

Reduce Current Expenses

If you’re currently closed, it’s time to reduce costs that you no longer need. For example, a restaurant owner may not necessarily need to get fuel deliveries if the machinery and cooking equipment is no longer in operation. There is a multitude of cuts that you can make that will reduce the overall amount that you spend each month. This may include landscaping, housekeeping and maintenance fees that are no longer necessary until you open again.

Take Out a Loan

Disaster loan assistance is great for small business owners who are truly struggling to keep themselves going. These small business loans are typically given to entrepreneurs who need to pay overhead, employee wages and other types of fees. You’ll find that these loans may even be forgivable until the end of the pandemic, which means that you won’t need to worry about paying them off until you actually are able to reopen the company.

Offer Online Sales

If possible, try to offer online sales so that you can still have some money coming in while you are closed down. This is a great way for you to earn some extra cash without having to worry that you are fully out of business. Be sure to have a secure website with an online shopping cart feature. People will then be able to purchase products or services from your site and you’ll receive payment in return.

There are many things that you can do that will benefit your company during the current pandemic. It can be scary, frustrating and even downright infuriating to not be able to keep your business open while everything is still up in the air. Rather than continue to worry about these things, be sure to make cuts to your finances, receive refunds and reimbursements and take advantage of small business loans that will provide you with the money you need.