As if running a business didn't already have enough challenges, now business owners across the country are facing new, sometimes very onerous restrictions on how they operate. These restrictions are ostensibly used to "open" the marketplace however the end result in many cases is increased costs & lower margins.
One of the biggest threats to the well-being of small businesses right now is price increases and supply line disruptions. One of my business owners put it this way:
"Nick right now my supply chain is in absolute tatters. It is not possible to produce some of my products even though I have customers that wish to buy. In an attempt to keep my workforce, I’ve employed “sniffers” to go out and search for military surplus electronics and to visit places where electronics are sometimes misplaced and forgotten. By doing this, I’ve been able to continue producing analog products but even that can’t go on for much longer because 99.9% of what you need is not enough."
As I write this, he is one item away from being completely out of business.
As lenders, we rely on the uninterrupted revenue flows for repayment of working capital facilities. If businesses have problems so do we; there is no way to recoup losses if there isn't any revenue.
For now, Alternative lenders continue to fill the gap left by banks for unsecured financing by monitoring state-by-state restrictions (if they exist) and industry trends. Offers are made with all factors included so business owners can continue to access critical funding.
Alternative lenders are private business owners providing a critically needed service to other business owners. When it comes to the challenges imposed on small businesses, we are truly in this together.