Bloomberg: How to Conserve Cash When There Is Little Money Coming In and Expenses Keep Piling On
With many small businesses facing a long-term existential threat triggered by the COVID-19 pandemic, conserving cash has become more important than ever, writes Robb Mandelbaum for Bloomberg.
This, however can be hard when there is little to no money coming in but expenses continue piling up.
“You need to hold on to whatever you have,” said Andy Fried, a counselor at the Small Business Development Center. “Most expenses are variable – you can control them. Some are fixed and uncontrollable, like rent. You really need to focus on the uncontrollable expenses.”
The first thing to do is look to the SBA for help. If you have a term loan guaranteed by the Small Business Administration, your repayments will be picked up by the federal government for both principal and interest, for the next six months.
You also need to call your bank if you have a conventional business loan and ask to have your payments reduced or deferred.
Meanwhile with some landlords discussing rent reductions or deferrals with at least some tenants, calling your landlord should also be on your list.
Read more tips at Bloomberg by clicking here.
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