COVID-19 has brought about a complete change to our lives and how we run our businesses. Many small business owners had to close 
their doors and some are now beginning to open. While the economy begins to reopen, as a business owner you should take a close look at where you stand financially and start to have conversations with your key partners on the long term impact of COVID-19 on your business.
Let’s start with a long-term analysis. This is important because it gives you an idea where your business stands on key indicators. Things to think about:
- Monthly and quarterly profit and loss statements
- Debt service coverage
- Tangible net worth
- Lending documents – are you still in compliance with the loan agreement at your bank?
If you get ahead of things and see these issues on the horizon, you can be in a better position to have productive discussions with your banker. Your long-term analysis could show whether the impact to your business is a short or long duration impact. If it’s a long duration impact it may be necessary to look at different options. You’ll want to reach out for help if your business is facing:
- A strained cash flow situation
- No line of credit, or limited credit line availability
- Growing note balances
- Payable balances/slow payments
- Covenant violations with your bank
We’ve had success helping businesses of every kind in these types of situations. Specifically, Byline has experience in working with businesses such as:
- Fast growing companies that need permanent working capital or have capex needs
- Mature businesses that would benefit from a rebalance/restructure of their balance sheet
- Businesses that may have been served with a forbearance agreement due to covenant violations (but have turned the corner)
- Franchises
- Businesses going through an acquisition
- Partner buyouts
- Businesses looking to buy a building with less than 20-25% down
- Any business that wants security from industry or economic volatility
As specialists in SBA lending, we can help. Please contact me, Ben Woodward, at [email protected] or (414) 758-6285 to talk about how we can structure financing that works for your small business.
