The COVID-19 crisis is causing businesses to face an unprecedented challenge. It will be tempting to seek out online lenders that can provide fast capital despite their high-cost rates and terms that will be unaffordable in the long run.
Here are some tips to keep in mind as you seek out disaster funding options for your business.
- Your first step should be to contact your existing creditors to see if they have deferral options or products that can be helpful.
- Continue to carefully evaluate all loan options before moving forward and consider the long-term impact on your business. Do not make a bad situation worse by taking out a high-cost loan.
- If you can be somewhat patient, it can pay off. Multiple disaster relief loan programs are in the works at the federal, city and state levels (get updates on our main COVID-19 resource page. These loans will provide responsible, low-interest funding to businesses that qualify. Use the resources page to start learning about these programs, their requirements, and application procedures so that you can be ready to quickly apply when they become available.
