The question is, will you find a chair?
These are unprecedented times for the Small Business community for sure. The Government is handing out money like its candy. I can fully understand why the typical business owner is so attracted to this as it is cheap and, in some cases, forgivable.
These funds will help you get through the next few months or maybe even a year, but what happens then? It is not true liquidity and if my 35 years in finance has taught me anything, it is that Liquidity is and always will be King!!!
Inflation is here already and whether it is transitory or longer, supply costs are rising. Interest Rates are creeping up, the Government is spending like a child and by all rational estimates, the next 3 plus years will get harder for the average Small Business owner. The more funds they dish out to consumers and business owners, will only hurt rates and inflation.
Nothing in life comes for free, especially if the Government is offering it and there will be a price to pay. The average Small Business is already experiencing problems with hiring staff due to very generous unemployment benefits and is either turning away deals due to cash flow (as I said Term debt is not liquidity) or cannot keep up with supply expenses as they rise due to inflation.
AFS can help you find that chair, so when the music does stop, and it will, you won’t be shocked when you get that larger tax bill or need to accept that larger order. We offer free consultations so you have nothing to lose and only upside in preparing for the inevitable. Give us a try!
We are experts at Working Capital, Receivable finance, SBA, LOC and small business financing.
Alexander Financial Solutions