Welcome to South Florida Funding Group – Your Business Funding Source
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Ready For Your Comeback?

COVID-19 wasn’t just a health crisis. It was also a business emergency. There were thousands of small businesses that were forced to shut down. Others needed to buy expensive PPE. The uncertainty meant that customers preferred to stay at home, rather than heading out to the shops.

Thankfully, this emergency is starting to subside. The vaccine rollout is starting to speed up. To date, there have been over 200 million people vaccinated. Because of this, many businesses are starting to open up again. Now is the ideal time to start making your comeback. The big question is, are you ready? 

What Do You Need To Re-Open?

Once you’ve decided to reopen your business, there are some things that you will need to do. The most important thing is to come up with a plan. Think about everything you will need to do. For example, if you haven’t been on the premises for a while, you might need to clean them out. At other times, you might need to start interviewing staff to handle the increased demand.

It’s a good idea to think about the lessons that you learned during the lockdown. For example, you might have come up with some new practices or decided to shift your focus. Sometimes, you might want to expand your business, opening up a new location. By reflecting on your ideas during the lockdown, you will be able to tweak your business plan. This will make your organization stronger when you do reopen.

Next, you’ll want to check the government regulations. While your business might be allowed to open, you will likely need to follow some rules. For example, you might need to make sure that all your patrons are staying socially distanced.

You’ll need to make sure that you are communicating with your team. You can do this in-person or online. Fill them in on the new regulations that they need to follow. Tell them any changes that you have made to the business plan. This is a good time to check that everyone is on the same page. Sometimes, you will need to hold interviews and hire some new staff before you can open the business at 100% capacity.

Once you are ready, it’s time to open the doors again. You’ll now just need to let your customers know that they are welcome back. There are a few ways that you can do this. For example, you might want to take out TV or online ads. If you have their contact details, you can send a short text. Print a sign and stick it to the front of your business. You can also plan a grand re-opening day, so you can celebrate the end of the shutdown with your customers.

How Much Money Do You Need To Reopen? 

Restarting your business after COVID is going to be a difficult task. While you might have a plan to follow, the financial situation will often impose some constraints. Even though the business might have been closed, there are still expenses that you were expected to pay. For example, you still needed to pay for electricity, insurance, and rent.

When you are planning your re-opening, you’ll need to consider how much money you will require. As you are doing this, there are a few things that you will need to think about. First, you’ll want to look at your plan. This will tell you the steps that you’ll need to go through to open your business. This will give you a rough idea of how much you need to spend. For example, will you need to purchase PPE for your employees? Will you need to pay for a cleaning service to get your premises ready?

Next, you’ll need to consider what additional expenses you will face. For example, will you need to hire more employees? Will you need to purchase new equipment? Perhaps you will need to buy some new inventory?

Lastly, now is a good time to start thinking about the future of your business. As the country starts to re-open, there is a lot of pent up demand. After spending weeks trapped inside their homes, people are ready to get outside and connect with local businesses. This can be the ideal to start thinking about expanding your business. For example, you might want to purchase a new facility or buy some new equipment.

Where Can You Source Funding From? 

To reopen your business, you will need to get some capital. There are a few ways that you will be able to do this.

First, you can go to the bank. While these are the most prominent lenders, they often aren’t the best option for your business. There are a few reasons for this. First, they will place a lot of emphasis on your credit score. If you don’t have a good credit history, you often won’t qualify for a loan. Even if you do, you may have  to pay a high interest rate.

Additionally, the bank is slow. Often, you will need to fill out a lot of documents. Then, you will need to wait a few weeks to know if you have been approved. Because of this, it will usually be a few months before the money lands in your account. If you need to wait this long, you could be giving your competitors a key edge. They will be able to start trading before you, so there is a risk that they will start to poach your customers.

Another option that you might want to consider is getting crowdfunding. Dozens of platforms will let you do this. You can also use equity crowdfunding. This lets you sell a portion of your business. However, this has a few downsides. First, these platforms have dozens of other businesses competing to their attention. This is especially true after COVID. Because of this, you will need to have a good marketing campaign that will allow you to stand out. Additionally, not all of these websites will have a good reputation. Because of this, you might be better off getting a loan.

The good news is that there is another option. You can use alternative funding. Let’s take a closer look at what this is and some of the pros and cons of this option.

What is Alternative Financing?

These are groups that offer financing outside the banking system. This allows you to connect directly with lenders. This system offers a few key advantages. First, it is a lot faster than going through a bank. Often, you just need to fill out a few pages of information. Within 48 hours, you will know whether or not you have been approved. Within a few days, the money will be in your account. This will let you get back on your feet fast. Furthermore, these lenders will be a great source of emergency funding, giving you the money you need to get through the tough times.

Additionally, alternative lenders won’t put as much emphasis on your credit score. This makes them more accessible to those who are just starting their business.

Another reason why people choose to use them is because of the increased flexibility. As we’ll discuss, there are plenty of alternative lending options to explore. This will make it easier for you to find the right option for you. Usually, these lenders will be understanding of any changes to your circumstances. If you notify them of a business emergency, they might be able to alter your repayment terms to give you a better chance of paying back the debt.

However, there are a few potential downsides that you should consider. First, they might have higher interest rates than bank loans. Also, they tend to have shorter lending terms. This can mean that you will be facing a higher monthly repayment.

What Alternative Lending Options Do You Have? 

Hopefully, you now have a better idea of why so many businesses opt to use alternative lending services. But what type of funding options do you have if you want cash now?

Merchant Cash Advance

This is one of the most flexible funding agreements. If you are approved, you will need to pay a portion of your debit and credit card sales. You can make these repayments daily or weekly. This is a lot easier for most business owners to manage. The amount you will receive will depend on your expected future sales. Your bank records will be used to calculate this. Using this type of funding option, you will be able to get between $5,000 to $500,000. Once approved, you can have the money within five days.

Unsecured Business Line of Credit

These are another flexible funding option. Once approved, you will have a set approval amount. Then, you’ll be able to draw on the line of credit up to this approved limit. Any time you need funds, you’ll be able to use the line of credit. As you are pre-approved, you’ll be able to get the money very quickly, often within three days. You’ll only need to pay interest on the amounts that you have borrowed.

Unsecured or Secured Business Loans

Another good option is to use a business loan. These will make it easier for you to get access to a larger amount of money. They also offer structured repayments, making it easy to track the amount that you owe. There are two options that you can explore. You can either have an unsecured or secured loan.

In the case of an unsecured loan, you don’t need to put up any collateral. For some people, this will be the most appealing option. You won’t need to put your valuable items at risk. Though you will need a personal guarantee. This stipulates that you will become personally liable for the debt if the business is unable to make the repayments. However, there is a potential downside. You might need to pay a higher interest rate to compensate the lender for the increased risk.

On the other hand, you might want to choose a secured loan. This will involve the use of collateral. This will need to be something that is already owned by the business. If you choose this option, you will often have a lower interest rate. Additionally, most lenders will be more willing to offer you a larger amount of money.

Equipment Leasing and Financing

If you are planning on re-opening your business, you will need to make sure that you have all the necessary equipment. However, these tools will often be thousands of dollars. Because of this, you will need to turn to financing groups to get the money to pay for them. Thankfully, there are some options that you will be able to explore.

First, you can lease the equipment. This will let you rent the equipment. In exchange, you will need to make monthly repayments. However, you won’t own the equipment. This can be a good option if it is something that you only need for a short period. It’s helpful if you are expecting to replace it in the future.

On the other hand, you might want to consider financing. In this case, you will still need to make monthly repayments. The gear will be used as collateral to secure the loan. Once you have made the repayments, you will fully own the equipment. This is a good way of making a long-term investment in new gear.

SBA Loans

SBA loans are issued by the Small Business Administration. As these are backed by the government, they are considered the gold standard. However, they will only be available for limited uses. For example, you will be able to use it to purchase equipment or real estate. You will also be able to use it to clear your debts. The amount you can receive will vary from $125,000 to $10 million. Though the higher amounts are often used to purchase commercial real estate.

The only potential downside is that these loans will require more paperwork. As a result, it will take a little longer to get approvals. Often, you’ll know whether or not you’ve been approved within two to four weeks. You should have the money within your account within four months. Because of this long timeframe, you might need to take out another loan to get cash now.

Invoice Factoring

You can also use invoice factoring to get money ASAP. These are particularly good for those businesses that are dealing with financial problems and need to get cash now. In this case, you will be able to sell your invoices to a third-party business. This can help you overcome the funding gap that is caused by slow-paying customers. The good news about this approach is that it isn’t based on your creditworthiness. Instead, it will be based on the financial health of your clients. This is becoming an increasingly popular option. Currently, the invoice factoring market is worth billions of dollars and it is expected to grow into the future.

Real Estate Loans

You will also be able to take out loans to purchase real estate. These can be a good way of buying your premises or expanding your business to another location. South Florida Funding Group offers you a range of funding options that allows you to do this.

How Can You Obtain Alternative Financing?

Hopefully, you now have a better idea about why alternative financing can represent a good option for your business. To obtain this funding, there are a few things that you will need to do. First, you will often need to fill out some paperwork. The good news is that this doesn’t take too long. Often, it will just be a few pieces of paper. Usually, you will need to send some documents. For example, you will often need to provide your bank records for the last three months.

Usually, there will be a few checks that you need to pass. For example, a minimum amount of experience. Sometimes, you might also need to have a minimum FICO score. At other times, you might need to have a minimum monthly revenue. The South Florida Funding Group website provides clear guidelines, so you can check whether you qualify.

Contact South Florida Funding Group?

COVID has had a big impact on small businesses across the country. But now many of them are starting to reopen again. As long as you have a good plan, opening your business again will go smoothly. You should be able to bounce back even stronger. To do this, you’ll need to get fast business loans. That’s where alternative funding options come in. They are more flexible than a bank loan and don’t place as much emphasis on your credit. Most importantly, they are fast. The money will be in your account in days. If this would suit your business and you want to learn more, give the friendly team at South Florida Funding Group a call on 786-544-2700.

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The business funding you need when others say No!.

2569 Bay Pointe Dr.
Weston FL 33327

Email:
drew@southfloridafundinggroup.com 

786-544-2700

DISCLAIMER

 The operator of this website is NOT a lender, does not make offers for loans, and does not broker online loans to lenders or lender partners. Customers who arrive at www.SouthFloridaFundingGroup.com are matched with a lender or a lender partner, who offer business loan products or credit repair services.