News Release: 3/17/2020

  • Share:
March 17, 2020
Dear HWCOC Fellow Members,

I am very cognizant of the fact that by promoting our services in a difficult time like this, that I may come across as opportunistic (in a bad way) but I keep reminding myself that a lot of businesses out there are suffering right now, as uncertainty about what the future holds is paralyzing businesses, and if I can help them in any way, by accessing them financing to get them through this time, or even just giving advice on their financing needs, then that’s what I am here for. In addition to offering financing services, I also own a restaurant, which as of this morning is shut down for two weeks (at the least, I dont see this ending then), so I know all too well the pain that this is causing people, not just in the restaurant industry, but all small businesses all over the city. Regardless of whether or not you ask me for help with your financing needs, or you speak to another company like mine, or your local bank, it is important that you are aware of some things.
 
Firstly, if your business is suffering as a result of the virus outbreak, you are clearly not alone. Small businesses in nearly every industry are feeling the economic effects of the outbreak, but probably none more so than the hospitality industry:
  • A decrease in sales (as customers shift priorities to the essentials)
  • Cash flow gaps due to lower sales
  • A shrinking workforce (as employees quarantine)
  • Mandatory closures in some industries
Despite these roadblocks, there are options available to help businesses get the funding they need.

If a business owner anticipates that they will need funding to cover a cash flow shortage in the next few months, I strongly encourage them to start considering their options NOW. The approvals available today might not be available tomorrow due to:
  • Fluctuating lender guidelines, making it more difficult as time goes by to get approved by lenders
  • A further decline in sales due to the coronavirus. Approvals/denials for a lot of short term bridge lending for small businesses (such as MCA loans) is not based on prior year tax returns, it is based SOLELY on the three most recent bank statements, as they demonstrate cash flow and the ability to cover repayments. Right now, those statements would be Dec 19, Jan 20 and Feb 20, which will be strong in most cases. In two weeks we reach the end of March, and then the statements required will be Jan 20, Feb 20 and March 20, and as things stand March will be really bad, so the chances of approvals for loans will fall dramatically. It is very important that businesses PLAN AHEAD!
The important thing to remember is that there are options! If you feel like you need help, or even just advice, speak to an expert in the field. We have LOTS of great business bankers in the Chamber, use them, speak to them. Or reach out to me, I am happy to help in any way I can.

I wish you all the best as we navigate these troubled times.
Contact:
Ian Tucker, Founder & CEO
ian@graftonfunding.com, (346) 610-5409