COVID-19 has affected the business world in many unexpected ways, and companies have had to make major changes to navigate the realities of a global pandemic. However, every challenge presents an opportunity.
If you’re looking to emerge from these uncertain times with a new corporate structure or revenue model, here are some of the things to consider when accessing business-to-business funding to help you come out the other side.
Getting help from a program or partner
Over the past year, local, regional and national government programs (in both the U.S. and Canada) have been developed to support struggling businesses and stimulate economic recovery. Most of these funding opportunities have been designed to avoid layoffs and deliver short-term stability in the form of loans or access to credit.
When you’re dealing with a challenging business climate, these financial incentives help, but aren’t necessarily the tools you need to reinvent a company or chase new opportunities. Business support such as asset-based lending, invoice factoring or equipment financing allow you to monetize your capital without giving up equity or relying on institutional aid.
“Government support can help you with an immediate need, but it doesn’t come with an entrepreneur attached,“ says John Levac, President at Blacksail Capital Partners. “The benefit of alternative lending is the fact that you’re dealing with a partner that can help you navigate changes in a sector with actionable advice. This can help you to shift a business, not just bridge a gap.”
The changing perception of business support: B2B funding during COVID can catapult you forward
Industries like retail and warehousing were some of the hardest hit at the start of the pandemic. With revenues down, traditional lenders may not have been as apt to extend financial support.
However, alternative lending allows you to work with your existing capital such as real estate, equipment or inventory to unlock funds. In the past, an approach like this may not have been as widely considered, however impacts of COVID-19 have shifted perceptions of how it can help.
While traditional lenders may make decisions primarily through credit history or cash flow, alternative lenders weigh additional factors such as business viability and asset value. If you’re able to demonstrate that you have a strong model that has weathered instability in the past, there’s a good chance that you can take advantage of future opportunities with a capital partner.
“We’re seeing a lot of companies scale their ecommerce and move away from brick and mortar for example,” Levac explains further. “Our funding gives companies that extra agility and helps them adapt to changing market conditions.”
Funding that encourages a proactive approach
As we emerge from the pandemic, access to capital will help businesses to recover and thrive. However, the companies that have used this time to reimagine their offering and its delivery will be the ones best positioned to hit the ground running.
Using funding now in anticipation of pent-up demand for products and services will yield strong results. Alternative funding options should also be seen as part of a regular business finance toolkit, and not a last resort.
“Alternative funding helps you at any point in your business, and should not be just a tool to use when you’re struggling to meet expenses,” says Levac. “Your company’s assets can be used to accelerate growth at every stage. As a funding partner, we identify those options for you.”
“Ultimately, the right funding should get you to the other side of a challenge and then help support your growth plans, from product rollouts and staffing increases through to larger expansions and acquisitions,” he elaborates.
Regardless of the route your business takes, these challenging times won’t last forever. If you want to take advantage of the support a capital partner like us can deliver, we’re here to talk.
Contact us today to discuss the funding options available to transition to a post-pandemic world. Make B2B funding during COVID work for you.