COVID-19 has affected everyone in one way or another but for many individuals and businesses, it has meant a loss in income. Loss of income could mean anything, from cutting back on a few expenses to having to close the doors entirely.
If you’re someone who has experienced income loss during this time, you may be wondering how to recover. It’s certainly not an easy feat but it’s not impossible either. Take a look at some of these vital tips for recovering your finances as quickly as possible.
1. Create a New Budget
A simple truth for most businesses is that the old budget isn’t going to work anymore. You’ll need to adjust your budget according to your income which means that some areas may need to make some cuts. It’s a good idea to make a list of essentials and luxuries.
Essentials are things you need to purchase to keep the business ticking, while luxuries may make your job easier but aren’t necessarily vital for running the business. Recovering a loss of income will mean scrimping and saving until you’re in a better financial position.
2. Relocation
If your business isn’t hinged on where you’re located, you could think about relocating to save money. For example, if you’re working in an office complex but most of your work is done over the phone or online, you could think about renting cheaper office space.
Alternatively, you could switch to remote working. If you and your team can be just as productive from home using online meetings, you could scrap office space from your financial outgoings altogether. Similarly, it saves employees the cost of the commute to work, so if you’re paying for car allowances that’s something else you no longer need to worry about.
3. Look at Loans
A loss of business income means you need to find the difference somewhere. No matter how much you try to make cuts, you may still need a cash infusion to save your business. Firstly, look at your existing loans and find out if you can lower the interest rates and add more finance to your deal.
Secondly, look at new business loans. Banks like Signature Bank of Georgia offer business loans that are tailored to your needs. Take a thorough look at your business accounts and find out exactly what you need to ensure your business survives and thrives and what kind of loan is realistic for you to pay back.
4. Always Communicate
Nothing steals a good night’s sleep like a bad debt. It’s easy to feel like burying your head in the sand when you have debt problems but that often makes the problem worse. If you’re struggling to pay your bills and you’re worried about paying off existing debt, it’s wise to talk to your debtors.
Most debtors are more than willing to make short-term arrangements that accommodate your financial situation. For them, it’s better to get paid something than nothing. If you need to know your rights or need financial advice, there are many debt advice agencies you can turn to for free advice.
5. Ask a Professional
Whether you’re in debt or not, talking to a professional advisor about how to avoid the close of business could put you in a much better frame of mind. Not only will an advisor be trained to help you put a financial plan in place, for you or your business, they can also point you in the direction of what may help.
Financial advisors are often privy to details that many other people don’t know. There may be loopholes in your contracts that could give you exactly what you need to get a financial boost. For instance, some loan companies offer a payment break during times of financial difficulty that can last up to six months.
6. Contingency Plan
The truth is, most people don’t plan for the unexpected. COVID-19 was entirely unprecedented so businesses and individuals weren’t prepared. It’s a great lesson for the future.
Creating a contingency plan for the future, should anything like this ever happen again, will mean you and your business will be able to recover much quicker. Take into consideration what happened this time around and what it will take to get back on your feet and use it to establish your contingency plan.
Give Us a Try
If you need a financial boost to get back on track, we may be able to offer you exactly what you need. At Signature Bank of Georgia, we offer business and personal loans that offer an array of solutions. You’ll also find attractive terms and interest rates.
We aim to offer you financial prosperity with one of our business loans. Why not take a browse through our website and look at some of the loans we offer and why they might suit you. You can also apply for a loan online or contact us directly at 404-609-0676.
If you’re busy at work, you can also schedule a callback or appointment and send us your query online. We recognize that many people have been affected by the recent global pandemic and we will do what we can to find a financial solution that puts you back in the driving seat.
How to Tackle Income Loss
Income loss is disappointing and a worry for everyone who experiences it. However, worrying about the loss of income can be even more frightening when it pays your and your employee’s wages. Stabilizing your business may mean doing everything you can to recover, including cuts and borrowing money.
If you need a loan to sustain your business, we’re here to offer you the best. Take a look at Signature Bank of Georgia’s business loans and get in touch with any questions.
