The losses caused by the Covid-19 pandemic have severely impacted the world. For small businesses and start-ups, the situation is even more complex, especially if their credit situation is not the best. However, there are alternatives they can explore.
Figures from the study ‘The impact of Covid-19 on UK small business’, elaborated by Simply Business, show that up to September 2020, 234 thousand companies have closed during the last year. And according to statements from The Federation of Small Businesses’ (FSB’s) 250,000 more companies could meet the same fate in the upcoming months.
Companies with bad credit history are limited by the lack of access to bank financing, but there are financial products such as small business loans for bad credit, that are a viable alternative to meet their needs.
Strategies to implement with a capital injection
In any type of business, it is important to take into consideration that success will not come easily, the entrepreneur will have to focus 100% on its capabilities and time to be able to overcome the first months and years, especially in the current situation. Here are 4 strategies to implement in any business, thanks to an injection of capital that you can get through small business loans for bad credit.
1. Generate an omni channel sales model
The new global normal, forces us to understand the business world in a different way. Due to mobility restrictions, it has been necessary for companies to implement omni channel sales models, that is, to maintain a physical sales location and open an online store.
Whether through free platforms or betting all in with the construction of an own digital store, ecommerce is a great option to diversify sales. This trend is here to stay, it is not a momentary necessity.
2. Payment of salaries
Whether companies have one or 20 employees, it is of utmost importance to fulfill their obligations to them. If the workforce feels the commitment of management, even in these difficult times, they will know that the company they work for is worthy of their total commitment.
When income is low, it is difficult to maintain an entire staff, finding the best small business loans for bad credit will be a great solution to cover these expenses.
3. Generation of sales and new customers
For a newly created company it is a priority to consolidate a solid customer base, to achieve this it is important to make a marketing plan, whose purpose is to raise awareness of the brand. Currently, digital strategies are extremely effective for this purpose.
Due to the need for immediate results, turning to specialized agencies is the best option. The experts will develop a comprehensive plan in which the philosophy and values, as well as the value proposition of the business will be exposed.
A successful social media campaign will connect with potential customers and generate a community with regular clients. Brands that listen to their consumers will be the winners to overcome the crisis and emerge stronger from the pandemic.
4. New line of business
It is important to be attentive to the needs of the market; companies must look for new business lines in which they can develop within the current trends. It is not about selling hamburgers in a furniture store; the point is to find new needs within the same sector and satisfy them. The development of a new product or service is not an easy task, relying on small business loans for bad credit is an excellent way to achieve it.
The third lockdown in the UK poses significant challenges for all companies, particularly for those with bad credit history, it is a complicated but not an impossible task. A bad financial record can be improved based on good practices such as paying on time, being organized in its use and above all responsible. Finding the best small business loans for bad credit will be a new opportunity to access financing.
Being a new company in the midst of a global pandemic is a demanding situation, it requires strength, resilience and a lot of support. Resorting to financial products is an excellent alternative, remember that in times of crisis the injection of capital can make a company rise from the ashes to stay for many years in the market. Could you tell us how your pocket has been affected during the Covid-19 pandemic?