The first part of 2020 has rapidly pushed us all into uncertain territory with COVID-19. The biggest question on the minds of business owners right now is how to find funds and support in order to keep operations afloat and weather the storm.
Many businesses are turning to the recent SBA loan program, the Paycheck Protection Program, which has gained the most traction and popularity for providing funding to companies during COVID-19. If government assistance programs determine you are not eligible or the program runs out of funding, there are various other opportunities in the financial markets that may be able to provide aid, including asset based lending, leveraged cash flow lenders, and mezzanine debt lenders, just to name a few.
Multiple factors go into selecting a financing path including your financial situation, leverage capacity you can support, your business size in both revenues and debt requirements, industry, location(s), and how much risk both the lender and you can take on. In your search, be prepared to provide several pieces of financial documentation including prior financial statements, tax returns, cash flow projections, balance sheet forecast, an inventory of fixed assets, and future business plan.
It is critical not to go it alone. Work with an advisor who understands your business model, unique circumstances, and industry. Citrin Cooperman has assembled a COVID-19 Response Unit (CRU) team, which is performing a range of services to navigate clients through the myriad of challenges they are facing and obtain faster responses to critical questions to plan for tomorrow, now.
SOURCE: citrincooperman.com
