Other Avenues for Financial Assistance When In Financial Crisis
Loans. A business owner may opt for loans to solve their financial situations and be able to pay business rent. You can even use your logbook as collateral when applying for a loan. Some of the common loans are bank loans and loans for Small and Medium Enterprises (SMEs) usually provided by governments to upcoming or struggling business owners.
E-commerce as the way forward. A business owner may choose to go digital in its business operations to reach many customers and serve customers best and, in turn, save on rental expenses when in financial strain. Being digital may also help cut some expenses like electricity, air conditioning, and staff reduction.
Work-from-home. Employers may consider assigning employees to work to accomplish while at home and in such situations, save finances of daily operations like coffee & snack expenses, parking lot fees, transportation refunds. The money saved can go a long way in reducing the rental cost, even to a small extent.
Consider factoring. This is where a company sells its receivables at a discount to get cash up-front.
Credit cards. It is a risky business and should be a last resort. However, a credit card can be used responsibly to get you out of the financial problems and, in turn, allows you the opportunity to use the little cash at your disposal to settle rental payments with your landlord.
Pledge some of your future earnings. An ambitious business owner may offer up a percentage of their future lifetime earnings in exchange for upfront, undesignated venture funding.
Do mergers and space sharing. Look for avenues in which you can merge your business with another, or lease out that extra space like a spare room or parking lot and have the opportunity to share rental cost.
Try crowdfunding. This is where you put out your best idea to the scrutiny of the crowd, and if they like your idea, they assist in funding. It is supposed to facilitate the asking or and giving o support for single, one-off ideas. Usually, project-creators offer incentives for pledging to inform of a reward for the support.
Use your ‘rainy season’ savings. Most businesses, if not all, usually have savings that they intend to use when the going gets tough. And what situation can be tougher than an eminent eviction when you have run out of options and even the deposit has been used up?
Temporary deferment of government-related debts. As a business owner having rental problems, you can take advantage of the crisis and defer payments like profit tax (but first confirm how the government is likely to react to that) and student loans for a later date.
Government relief. Find out available government reliefs that can help sort out your rental problems directly or indirectly through relieving you on other expenses whose funds you can then direct to the rental payment.