The second wave of COVID-19 is affecting the way we live and work everyday. Though the pandemic has created multiple social and economic issues, what’s causing even more unease is the resulting financial pressure arising out of this situation of uncertainty.
MSMEs especially have been hit hard and a lot of them are being closed temporarily during the pandemic and many remain on the brink of permanent closure if they do not act fast. While entrepreneurs are optimistic as communities begin to reopen, many worry that their business won’t survive another wave of the virus.
If you are an MSME owner who has made it this far, we urge you to not give up yet. Even if you are facing difficulties right now, there are a lot of things that an MSME owner can do to revive their business against a second wave of the pandemic. Here are a few ways:
1. Cut your expenses and revise your budget:
In such times, MSMEs should aim to become as lean and efficient as possible. That includes revising your monthly budget regularly and cutting unnecessary spending. This allows them to redirect funds to upgrades that help businesses maximize profits.
2. Find new ways to reach customers
Saving money is just one way to continue your operations. MSMEs need to adapt to technology and find digital and safer ways to find new customers and connect to them. A small business loan can be availed to drive more attention towards this adaptation and renewal of the marketing strategy. Business loan can also help you to adapt to the best way to safely deliver products and services to your customers.
3. Create a secure operating plan
MSMEs also need to take care of their employees through safety measures. They need to invest in physical upgrades that reinforce social distancing and regular sanitization. Implementing no-touch payments is an important safety measure to prevent the spread of COVID-19. MSMEs can encourage their customers to use digital payment gateways. While these upgrades can cost a significant amount depending on your employee count and size of the factory, you can avail a business loan to pay for these costs.
4. Avail a loan to fulfill your fund requirements
While the above-mentioned ways are certainly effective, if you don’t have funds to keep your business running, these will not work. In such a case, you can avail a loan against property or business loan. Banks or NBFCs can help you avail loans to fulfill your business’s financial requirements, pay off your vendors or fund your upgrades, ensuring your business continuity.
While there are a lot of banks or NBFCs offer different kinds of loans, it is better to analyze and choose what is the best for you. EFL is one of India’s leading NBFCs that offers: Business Loan, Machine Loan, Loan Against Property, Rooftop Solar Loan, Working Capital Loan, Emerging Enterprise Loan, etc.
With its 30+ years of experience in financing SMEs, EFL understands that MSMEs can suffer in a prolong pandemic. That is why, EFL also offers a Small Machine Loan, which can be used to purchase small machines such as nut-making machines, punching machines, welding machines, shutter machines, scrap grinders, corrugation machines, paper cutting machines, and many more. This small machine loan can be used to purchase machines that can help your business to continue its operations. The benefits of this loan are that the cost will get paid from profits generated from the machine and stress on working capital will also be reduced. EFL offers small machine loans through an easy and quick process, minimal documentation, and doorstep service. The interest rates for small machine loans are customized according to the customers’ financial profile.
While the situation is undoubtedly difficult, with a realistic plan, it is possible to navigate this uncharted territory and keep your business going. EFL is By Your Side in your every endeavor.
To know more about EFL and its loan products, click here: