COVID-19 is an infectious disease caused by a newly discovered coronavirus. This is a respiratory disease that causes a mild to moderate respiratory illness. The virus enters the human body through respiratory means, it is difficult to limit it outspread.
This global pandemic has hit everyone right in their face, bringing everything to an almost standstill. The impacts of this pandemic are felt across all sectors and every field mankind has ever touched. The economic effects will be witnessed in the following months to come.
The World Trade Organisation (WTO) has reported that the world merchandise trade is going to experience a sharp decline in the range of 13% to 32%. The global pandemic will see double-digit declines in trade volume due to restrictions in transport and travel.
How does one sustain their business? All businesses have already started to face the consequence of declining sales numbers. Particularly, the small business owners are the most affected because it is already difficult to survive in this cut-throat competition.
For such times of distress, business owners can opt for a business loan. The business loan can be either an SME loan or MSME loans depending on the classification of your business.
Let us understand how an SME loan can help your business grow in times of austerity-
Maintaining the existing business levels
The pandemic has caused major businesses to remain shut, but the government has taken appropriate measures by way of a rate cut. This will lead to the borrowing of funds becoming cheap. These borrowed funds can be used to maintain the existing production levels in terms of raw materials and other fixed costs.
Stocking up Inventory
A business that is involved in the production of goods requires inventory. The SME loan facility can be utilised to stock up the inventory levels that can help in fulfilling the demands of the one production cycle. An adequate inventory level will ensure that your business runs smoothly and without any hurdles in maintaining the production levels.
Venturing into new Businesses
In these stressful times, we can witness a shift in the demand pattern towards necessary supplies required for day to day use. If your existing infrastructure facilities can support the newly raised demands, you can make use of a business loan to start meeting the new demand for products. It can range anything from a surgical mask to hand sanitizer.
The World Is Your Market
There is a demand for necessities across the globe due to this global pandemic. You can obtain an SME loan to increase your production levels to meet the demands if you are involved in manufacturing such a product.
Keeping in mind the above points, you can obtain an SME loan at competitive interest rates to support your business in difficult times. Instead, make use of a business loan facility to capitalise on the newly generated opportunities for business to expand and gain a higher market share.