Coronavirus Finance Planning - Three Financial Steps to Take now to plan ahead for Coronavirus economic disruptions to your business

By Jeff Bardos, CEO, Speritas Capital Partners
March 19, 2020
– Greenwich, CT
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Three Critical Coronavirus Finance Planning Steps to Take Now During the COVID-19 Crisis

Keeping your family and your employees safe is clearly your first priority right now as a business owner. Once you have that under control, I recommend that you focus on 3 critical financing areas to keep your business afloat:

  1. Cash flow Management
  2. City, State and Federal Support
  3. Lender Relationships

Manage Cash Flow Prudently 

Treat each dollar in your operating account as if it were your last. Manage vendor relationships and operating expenses carefully, reducing anything which can be viewed as discretionary in this environment.

Develop a daily 90-day cash flow forecast with a couple of scenarios and update your projections frequently as this crisis unfolds.

Look for City, State and Federal Support

Start with a determination if your state and your business qualify for an SBA Disaster Assistance Loan. These loans are provided directly by the SBA, not through private lenders. You can get the details and apply at this SBA disaster loan info link.

Each state has business and economic development agencies, and many are offering direct support to small businesses impacted by COVID-19. You can search for resources for your state at this federal economic assistance link.

Make sure you follow the Federal Government efforts to provide economic and tax relief to small businesses. The components of the relief package change daily, but be sure you’re up-to-date on what may become available to you.

Talk to Your Lenders

In times of stress, the natural tendency is to avoid your lenders. But the better approach is to engage your lenders early and be transparent about how you’re being impacted by the economic shutdown. 

Some lenders have provided temporary payment relief and most lenders are open to some type of forbearance. The key is to engage them early and to provide full transparency about the steps you’re taking to address any weakness. If you have current debt, this is the key to your successful Coronavirus finance planning efforts.

Preparing for Short-Term & Long-Term Economic Weakness as a Result of COVID-19 Disruptions

These are difficult times for all of us, personally and professionally.
On the professional front, businesses are facing uncertain customer demand, difficult supply relationships, and tight cash flow issues. Business owners need to consider the cash flow implications if this economic weakness lasts longer than currently anticipated.

Lenders may show some flexibility in enforcing loan agreements.
The federal bank regulators have urged supervised banks to “work constructively with borrowers.”

The Coronavirus Preparedness and Response Supplemental Appropriations Act (H.R. 6074) signed into law last week provided the SBA with a small amount of support, likely funneled through their disaster loan program.

Hopefully, this flexibility and support will provide meaningful relief to businesses managing very tight working capital situations.

The good news is the cost of borrowing has gone down.
The Fed cut short-term interest rates by one-half of a percent and as a result LIBOR-based and Prime-based lending rates have fallen. These rate cuts affect not only asset-based lending, but term real estate and SBA loan rates too.

Asset-based lending, including accounts receivable, purchase order, and inventory financing are effective ways to leverage business assets during tight cash times. M&E and real estate collateral can be used to generate term loans as additional sources of cash infusions.


How Greenwich, CT-based Speritas Capital Partners can help.

Speritas Capital is eager to help clients navigate through this crisis. We’re happy to review cash flow projections, review SBA Disaster Loan applications, and discuss lender strategies. Our advice is always free.

We’re always available to discuss financing options. ABL, accounts receivable, purchase order and real estate financing can be quick and useful options in this challenging environment.

Feel free to schedule a call with me, or call/text me directly at 203-247-4358.

Related Articles

Look Beyond the Paycheck Protection Program to Loan Forgiveness

Liquidity Planning in the Age of Pandemics (originally published in the National Equipment Finance Association Magazine)

8 Steps to an Accurate Cash Flow Forecast (with template)

Take a Strategic Approach to Managing Working Capital


About the Author
Jeff Bardos, CEO, Speritas Capital Partners

Jeff has over 30 years of experience in the financial services industry. After graduating from the Columbia Business School, he joined the New York Federal Reserve Bank as a senior staff member in Bank Supervision, leading the Bank Analysis department. From the nation’s central bank, Jeff moved into the private sector, working at senior levels in commercial banking, retail banking and risk management. He has also played senior founding roles in several start-ups. Learn more about Jeff.

Contact Info
Jeffrey Bardos
CEO Speritas Capital Partners
Call/text Jeff at 203-247-4358
Email Jeff
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Speritas Capital Partners specializes in complex credit, collateral and cash flow situations and we never take upfront fees.

Because Greenwich CT based Speritas Capital is a debt advisory firm, we have access to a wide variety of lending structures. We’re not beholden to any one lender or structure so we can use our creativity and experience to design a structure that truly fits the needs of our clients.

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