Tips for businesses in danger of stopping due to COVID-19
The number of companies that has suffered setbacks and ultimately failed due to the COVID-19 pandemic is unprecedented. The challenges of the pandemic hurt so many SMEs in Singapore and many countries worldwide. If not for government grants, local support, owner tenacity, and availability of sg business loans, there’d be no telling how many more would have fallen.
In Singapore, where many SMEs are dependent on physical interaction, such as restaurants, cafes, pubs, and live events, the lockdowns are surely distressing. Despite the valiant attempts of the government and the support of the locals, several businesses have reached a stage where their business is no longer capable of operating.
Let’s review some of the options for businesses in danger of being shut down.
Seek professional advice. It’s worth checking with your accountants or consultants even if you clearly understand your businesses’ tax, finances, and accounts. Professionals are privy to the government’s action and possible sg business loan to support businesses.
Although company directors are responsible to their shareholders when the company is viable, insolvency brings changes. When you owe more money than what you have at your disposal, your responsibility will change towards creditors.
What often happens when a business faces hard times is, they start spending their remaining cash reserves, but if your business is insolvent, stop paying yourself or anyone else – even suppliers you may feel need or deserves it. The rule changes as soon as your company owes more than it’s worth. If there you’ve offered preferential treatment to anyone during this insolvency period, you might find yourself charged with wrongful trading.
Consider liquidation. Closing a company because of debt can be done through a process known as liquidation, whereby an insolvency expert will sell any assets and distributes them to creditors. Liquidation can be done quickly and seamlessly and. This step offers a chance to eradicate creditor pressure and start afresh. You can even liquidate with a bounce-back loan because those loans bypass the need for personal guarantees.
Finding loans to mend issues or after starting fresh
The key thing with a business that every single one is different. Since you know your business best, you’ll have the option of trying to save it via a reliable sg business loan or liquidating and then going for that loan as you start fresh. Tough times don’t last, but tough businessmen dor articles on how to survive and thrive.
You may find yourself looking for a loan as you weather this pandemic storm. A bank loan can improve your chances of getting bouncing back or even fully recovering from the slump you’re in. This is especially true if your only issue is technology/facility upgrade, which is easily mended with purchase.
No company is ever too small to acquire a loan, especially when you take a trusted bank like DBS as a partner. Banks have traditionally been the top choice for small businesses looking for loans because of reliability and ease of the process. Around 68% of small businesses that secure traditional sources of credit, such as loans, will get it from a commercial bank. Don’t forget to check rates and any reviews you can find before you commit to a loan provider. If you’re unsure of anything in the process, you can consult with your experts or the bank representatives.