Corona virus has impacted the business ecosystem greatly. Several businesses have been scaled under by the health pandemic’s seismic effects. Stay at home and social distancing advisories affected demand and supply hence pushing some entrepreneurs out of business. Some sectors like transport and hospitality bit the biggest chunk in losses.
However, with the world readjusting to new Covid19 strains and ongoing vaccination in some countries, businesses must look at ways to salvage the situation in order to get back to business. To do so, access to finances is an integral piece of the equation. Here is some of the ways to access funding for your business;
- Peer to Peer Lending
Also known as crowd-lending, peer-to-peer lending is a system which brings savers and borrowers together. Those who are willing to save their money for a good interest rate, lend borrowers directly without involving a bank. This is a friendly mode of financing because the borrower gets a suitable loan at cheap interest.
2. Asset-Based Financing
This is a great option for businesses who have been in business for a few months, and have accumulated assets which can be off-set for financing. Some of the assets you can use to pitch for funding include stock and property. For instance, you can approach a financier and convince them to finance you with up to 80% – 85% of the value of your current stock value. This option is the fastest way to access funding due to its quick turnaround time.
3. Lookout for Angel Investors
An angel investor is someone who provides financial support to a startup and small enterprise. These provide lump-sum capital for a business to sail through difficult times. Consequently, they can inject seed money to help you kick off your business idea.
By Belindar Momanyi
