Despite the pandemic’s frustrating impact on businesses, especially startups and smaller entities, many small companies have prevailed. They’ve made quick pivots, adapted frequently, and made crucial decisions in order to stay afloat.
In fact, plenty of organizations upended their core lines of products and services in a flash — showing just how nimble companies can be. Case in point: A full 41% of leaders who participated in the 2021 Guidant Financial Small Business Survey said they’d disrupted their own operations to meet changing markets and consumer needs. Even those that didn’t completely overhaul their corporate objectives or lineups made concessions based on the realities of COVID-19.
As a result of all those 2020 shifts, three business trends have taken prominence.
1. Widespread adoption of new and different tech.
Throughout the pandemic, technology has proven to be a lifeline connecting businesses and consumers. Perhaps for this reason, Guidant’s research shows that around a quarter of small businesses plan to spend this year upping their internal IT solutions or work and external tech partners to attain goals.
2. Prioritization of quality e-commerce customer portals.
Consumers have moved en masse away from buying goods in person for two main reasons: convenience and safety. Consequently, companies everywhere are improving their digital experiences to woo new eyes and make up lost fiscal ground in retail settings.
3. Expansion of virtual services.
Where feasible, lots of brands are expanding their services virtually. That is, they’re extending their core services beyond their traditional capabilities. For instance, some have added online consulting services to their offerings.
Business Finance Loans: A Lifeline for 2021 Success
It’s a new landscape in the post-pandemic world. Business owners will have to wrestle with these new consumer demands and technological opportunities. For many, the biggest substantial obstacle to jumping on these trends is the cost to upgrade. Yet paying for a revitalized tech stack takes money. Enter myriad business financing options, starting with forgivable federal loans.
As most companies know, the government has disseminated Paycheck Protection Program (PPP) COVID small business loans. These loans can be used to cover up to 40% of certain technical business equipment financing, as long the rest of the money is used for payroll, according to Small Business Administration guidelines. But 40% of a first-draw or second-draw PPP loan may not stretch far enough to enable equipment leasing or financing. And even with the many other types of programs and grants on the horizon, businesses might feel a financial pinch.
This is where lending institutions’ business finance loans can come into the picture as sources of capital funding as alternatives or adjuncts to PPP loans. For instance, working capital loans can serve as short-term bridges to help companies remain stable. Because working capital loans have abbreviated payback terms, they offer an attractive, feasible solution to keep the company moving forward. They can be valuable to fulfill new client orders, pay seasonal workers, seasonal inventory, growth-related expenses, and finance business partner agreements, such as with third-party bookkeepers.
Without a doubt, business teams have been adapted to new customer demands, marketplaces, and technology. However, leaders have a plethora of choices when it comes to business equipment financing at borrower-friendly interest rates. This will allow brands to continue to pivot and thrive.
Are you interested in learning more about your company’s small business financing options? Talk to a Marlin Capital Solutions representative today.