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Business Financing During Covid-19: Tips To Help You Fund Your Business Through The Pandemic

With over a third of the world’s population under restrictions, the ripple effects of the current pandemic are being felt far and wide. Amongst the most affected are the small and medium business enterprises.

Estimates from the World Bank average that the SME community accounts for 90 percent of the global business world, meaning that millions of small business owners are now scrambling to keep their business afloat in a time of reduced or even zero income. With no income and continuing costs like employee wages, rent, and business loan payments to keep up with, many SMEs are facing decisions during the pandemic such as how to fund the glaring financial gap and ensure the survival of their business.

Check With Your Insurer For Business Interruption And Natural Disaster Coverage

Many busi-nesses are turning to their insurers for compensation during this time. If your busi-ness has busi-ness interruption insurance coverage or key person insurance, you may be able to claim compensation due to your busi-ness closure. Since busi-ness interruption insurance typically covers damage to equipment or premises, most policies may not cover your busi-ness’ loss of income unless your policy includes a non-damage busi-ness insurance clause. While many policies have not expressly included disasters such as Covid-19 in their coverage, you can also approach your insurer to clarify the terms of your coverage in these unique circumstances.

Meanwhile, key person insurance can provide a replacement income if you or any management is unable to work due to being affected by the virus. It is also worthwhile checking if your busi-ness has liability insurance. In such difficult times, small busi-nesses are facing increased risks of legal actions from employees (delayed or lack of salaries/dismissal) or customers (late or non-delivery of orders).
Secure A Private Loan Or Business Line Of Credit To Tide You Over

Another income alternative for busi-nesses is to approach your bank about a business line of credit or to secure a business/personal loan. While most small busi-nesses may be hesitant about this option due to the cost of borrowing, many lenders and thegovernment are now offering PPP loans you may be able to access. There is also a growing list of low-cost loans by private lenders such as Kiva, who lend up to $15,000 at 0 percent interest for up to 36 months if you qualify. If your business’s financial track record has already been affected by the pandemic, a list of the best unsecured loans for bad credit at Crediful shows that lenders such as CashUSA offer personal loans of up to $10,000 at a low rate of 5-5.99 percent.

Access Government-Backed Emergency Loan And Grant Schemes

Many government and nonprofit organizations are now offering business support schemes, grants, and loans aimed at helping small businesses and entrepreneurs survive. In America, the U.S. Small Busi-ness Administration website lists provide information on SBA backed loans and debt relief options such as the Community Advantage Loan Program, which provides loans of up to $250,000 to small busi-nesses in under-served markets. Similarly, the 504 Loan Program is being offered to encourage job retention and can be a useful source of income for employee wages.

Utilize Business Budgeting And Finance Tools To Access Internal Funding

Finally, this is also the perfect time to maximize cost savings within your busi-ness. Businesses can save money with digital tools by utilizing task automation software such as payroll apps or customer service software. Business budgeting apps can prove to be a staple during financially stressful times like these, by helping small busi-ness owners identifying overspending or prime areas for cost cuts.

As a small busi-ness owner, you can also access personal financial support, including cost reduction programs for utility bills or food assistance, by using resources like While the current health crisis is an unprecedented one, there is help available to help your SME weather the storm.