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Updated: June 15th, 2020
In life and business, crises are inevitable. And we’re not just talking about natural disasters. A crisis can be anything that disrupts regular business operations. Think: losing your top salesperson, experiencing a data breach, or dealing with a burst pipe.
Here are other examples of common business crises:
Any one of these crises has the potential to put multiple areas of your business at risk, including daily operations, customer relationships, and finances. That’s why it’s crucial to develop a smart response plan and take advantage of the right resources for overcoming a business crisis and help reduce the damage.
When you’re trying to resolve a business crisis, you need to take a multi-pronged approach. Not only do you have to address the fallout from the crisis and figure out how to return operations to normal, but you also have to explore the root issue to prevent a similar crisis from occurring in the future.
Here are three key steps to take when oveercoming a business crisis:
In the midst of chaos, you may feel tempted to jump into problem-solving mode, but it’s important to assess the situation and evaluate your options for moving forward. Instead of creating a plan by yourself, though, bring in help. Consult a couple of experts who can help you overcome a business crisis by looking at the situation from different angles.
If you’re dealing with a lawsuit, for example, you need to call your attorney. If you’re facing a cash flow shortage following a big project, it’s a good idea to check in with your accountant. You may even want to reach out to your business mentor or a colleague who has dealt with a similar crisis. Gathering a few trusted opinions is key to making a plan that covers all your bases.
After you assess the damage from the crisis, it’s time to create a response plan. A good plan should address the fallout, as well as the root cause of the crisis. Imagine, for example, that your number one client unexpectedly ends their contract with you, setting you up for a massive cash flow shortage. To recover from the loss as quickly as possible, you need to give different team members different tasks.
Someone should reach out to the client directly to ask what went wrong, apologize, and try to address the issue. Another person should connect with other clients and try to drum up new business. Finally, someone else should be in charge of reviewing company finances to ensure you have enough cash to cover payroll, utilities, and other operational expenses in the interim.
Make sure to build flexibility into your plan, too. Every couple of days, take time to evaluate your efforts to see which strategies are working and where you may need to rethink your approach.
Different business crises demand different response plans, but every crisis requires at least some money. That’s because crises tend to hit your finances the hardest and fastest. In the wake of a crisis, it’s critical to review your business finances with your accountant to see whether or not you have enough money to handle the issue.
If you don’t, you may need to explore other options, like re-shuffling accounts payable, promoting a sale, liquidating an asset, or applying for a business loan. An online term loan can help bridge the gap in cash flow to keep your business going.
When you’re searching for funding in the wake of a business crisis, there are plenty of options to explore. However, Funding Circle term loans are one of the best for small business owners because of their affordability and speed.
Here’s what you can expect when you apply for a loan with us:
When you’re overcoming a business crisis, you need to act quickly and efficiently. You don’t have time to experiment with solutions or wait months for funding. With Funding Circle term loans, you can get cash fast.
The process is designed to be as smooth and expedient as possible. Here’s how it works: with just a few key documents, you can submit your application online in under five minutes. After you click submit, you can receive a response in as little as 24 hours, and get money in your account as soon as the next business day if you’re approved.
Business crises can wipe out your finances in a matter of days — and sometimes hours — if you don’t have a cash reserve in place. After all, it takes a good chunk of capital to fix a broken X-ray machine at your dental office or replace thousands of dollars worth of damaged inventory.
With a Funding Circle term loan, with terms over a period of six months to five years, and use your funds for anything from upgrading your point of sale system to hiring a new IT consultant after a data loss. The best part? Our interest rates are competitive with those of traditional bank loans.
When you’re dealing with an unexpected issue, the last thing you want to encounter is another surprise in the form of your loan repayments. That’s why we offer fixed rates and once-monthly payments. You’ll always know what to budget for — no unpleasant surprises necessary.
Plus, we have a simple one-time origination fee, so you won’t get hit with hidden fees later. If your business stabilizes soon after the crisis, you can always pay back your loan in full with zero prepayment penalties. You’ll only pay interest on the time you borrow, so you can put the money you save towards an emergency fund or crisis prevention initiative.
In the event of a crisis, you need as much compassion and help as possible. When you’re applying for a term loan with us, we guarantee a swift, painless process and friendly, dedicated customer service. We want to do the heavy lifting for you, so you can put your energy toward managing your business and taking care of customers and employees.
Right after you submit your loan application, a personal loan specialist from our team will reach out to walk you through the process, provide support, and answer any questions you might have.
Funding Circle, the largest small business lending fintech is one of a few non-depository online lenders in the United States that was recently approved to provide Paycheck Protection Program loans. We offer the PPP application in four languages: English, Spanish, Mandarin and Hindi. CLICK HERE.
Paige Smith is a Content Marketing Writer and Senior Contributing Writer at Funding Circle. She has a bachelor's degree in English Literature from Cal Poly San Luis Obispo, and specializes in writing about the intersection of business, finance, and tech. Paige has written for a number of B2B industry leaders, including fintech companies, small business lenders, and business credit resource sites.