Many industries plunged in output as a result of the pandemic. MSMEs are not an exception. Micro, small, and medium enterprises, otherwise called MSMEs are businesses whose assets range from P1 to P100 million in size. Micro enterprises are those that have up to P3 million; Small businesses have between P3,000,001 to P15 million while medium businesses have between P15,000,001 to P100 million.
Many businesses fall within micro-enterprises. Unfortunately, they were also greatly affected by Covid 19. While there are lots of other challenges to grapple in the wake of the pandemic, keeping your business moving is certainly a huge aspect.
Here are some tips that can help you navigate these trying periods:
Monitor your finances
Checking your financials is your first job in making any business decision. Evaluate how much you have, check your sales, profits, and cash flow. Also have a look at your business expenses including existing short-term easy loans, rents, and other recurring expenses.
This reveals your current business status and guides you in decision-making. Be honest in your evaluation since this determines how much you are able to sustain your business.
Remember it is not a time like every other. Along with other adjustments, you may also consider maximizing your available funds.
How much you spend is a vital adjustment in these times. Your recurring expenses are vital and perhaps, the first to check such as monthly subscriptions. It may also be the time to check your workforce or to consider implementing work-from-home if your work accommodates such. You may consider using new suppliers (of goods) if you find those who bill lower prices.
By all means, reduce how much you spend. This also means you may suspend any plans to expand till a future time. Remember the goal is to see you through the pandemic with your business alive.
Negotiate Debts And Payments
Waiver of loans is based on the discretion of the lender. Although the Bayanihan Heal As One Act authorized a moratorium of 30 days on loans, this is not equal to a waiver of the loans.
However, lenders, suppliers and landlords may be open to loan renegotiation at this time. Request for discounts, deferment, or an extension of the time for payments from individuals you are owing. Depending on individuals and past relationships, you may also explore the possibilities of partial or whole waiver.
Remember not to be commanding or coercive in your approach. Calmly approach them, after all, you need their help.
Take advantage of Digital Services
These days, many are stuck at home. As a result, they are also stuck with their devices – phones. Laptops, etc. The online market keeps increasing as the days go by and many have taken advantage of this to sell their goods to the world. You should do so too. Have a website and an online presence. If you’re offering a service such as tutorial for kids or fitness-related service, then use Zoom or Google Meet as your platform
Also, as you choose the online option, don’t limit your services. To accommodate clients’ satisfaction, you can also add other services that help your delivery or a skill that properly aids service delivery.
At this point, don’t limit your reach. Explore online solutions and learn to adapt to market trends in order to survive.
Apply For MSME Loans
Many feel that the pandemic period is a bad time to lend loans. The truth is, compared to previous times, lenders are more flexible, encourage more people to borrow, and are willing to give loans at relaxed rates.
You may inquire from a bank closest to you about available facilities and their rates. Banks are usually a good source of loans.
Series of facilities are also available to MSMEs through the government.
- The local government offers aid to MSMEs through Barangay. It is called Livelihood Seeding Program / Negosyo Serbisyo sa Barangay. From the local government, micro-enterprises may ask about this facility which is offered and if qualified, they can get up to P5,000 to P8,000 financial assistance. MSMEs also have access to credit through DTI’s Small Business Corporation (SB Corp) arm.
- Another available is Pondo sa Pagbabago at Asenso (P3), which is targeted at microenterprises owning not more than P3 million in assets. You can also borrow up to P200,000 at the rate of 1.5 percent in interest monthly.
- Also available for micro and small enterprises is the Covid-19 P3 Enterprise Rehabilitation Fund (ERF) suffering from severe losses as a result of the pandemic. Micro-enterprises can borrow P10,000 to P200,000; while small businesses with up to P10 million asset size can borrow up to P500,000. Interest is at 6 percent per annum.
Are there other ways to find money?
The cost of doing business is very important and thanks to them businessmen can develop their business. Unfortunately, we can’t always count on the help of the state. If you need a quick loan to invest in business development, check it out at https://robocash.ph/, there are good conditions for residents of the Philippines.
To get a loan from Robocash, all you need is Philippine citizenship and a cell phone connected to the Internet. You must register on the website and download your valid identification and confirm your phone number. After that you can go to the Robocash credit application form online and choose the amount you want to borrow. The credit application will be approved very quickly, and after its approval you will see that the loan is reflected in your account immediately or within a maximum of 2 days.
In addition, all transactions at Robocash are online and loans are granted within a very short period of time. Loans also have low interest rates compared to other loan providers. The company approves more than 90% of applications.
You can access the site at any time, at night and even on holidays. Customers describe Robocash as a pleasant and responsive company. Here you can get emergency credit to support your business, pay rent or purchase goods. However, take only the amount that you can return.