There is no doubt small to medium size businesses have become particularly vulnerable to the economic impact of the pandemic. Access to cash flow is a significant concern as sales may have decreased, but operating expenses have not.
Building on our recent blog series, “eCapital and you,” we will show how eCapital works with small and medium-sized businesses like yours to overcome common financing obstacles and position your company for future growth and success. You’ll gain insight into how to solve your payroll funding, gap financing and long-payment terms issues, and learn how companies like yours have benefitted from our customized financial solutions.
THE CURRENT LANDSCAPE
According to a Federal Reserve survey, 53% of surveyed businesses expected their total sales revenue to be down by more than 25% due to the pandemic. The share of firms that experienced financial challenges in the prior 12 months rose from 66% to 80% between 2019 and 2020. In response to those challenges, firms most used personal funds (62%) or cut staff hours/downsized operations (55%). Over 90% of firms in the survey said they applied for some form of government assistance during the pandemic. As government relief programs are drying up, business owners are left to search for other ways to fund their businesses.
Small to medium-sized businesses, are often considered too risky for banks – despite long credit histories or established business operations. According to the Federal Reserve study, 23% of companies with lower credit scores sought funding from non-bank lenders like eCapital. For these businesses who need to purchase supplies and pay staff until their revenue streams normalize, financing vehicles such as invoice factoring and asset-based lending offer efficient and fast access to the working capital, your business needs to thrive in a post-pandemic world.
In this series, we’ll take a closer look at the following financing hurdles and how to overcome them:
Payroll Funding – how do you pay staff before you get paid by your customers?
Gap Financing – you have orders to fill, but how can you buy supplies without funds?
Long Payment Terms – that new contract is excellent, but payments are 90 days away!
In each situation, we’ll show you how we can step in and provide rapid access to capital with quick and flexible funding, cash flow to keep your business moving, and a dedicated customer service support team for the best insight, guidance, and business lending service.