Make no mistake, there are opportunities in crisis. And while many consumers and businesses are still in crisis, others are in a position to take advantage of opportunities.
When other businesses are still cost cutting and laying off, a business that can take these steps can take advantage. Okay, it may not sound neighborly but this is business, right?
- Hire key talent away from competitors who are struggling or have run
their staff into the ground.
- Renegotiate their lease. Landlords do not want to lose them!
- Renegotiate with suppliers.
- Acquire real estate at favorable prices and credit terms.
- Pre-order and pay in advance to capture favorable prices.
- Expand marketing expenditures to aggressively go after more market share.
- Arrange financing now for expansion coming up.
Banks are looking for loans
More on number 7: Banks are looking for good opportunities to lend and many of them are actively looking for C&I (Commercial and Industrial) lending. If a business is in a strong position and has well-thought out plans, this is the time to approach the banks. They want the business.
What’s a lender to do?
- Have a conversation with your business borrowers and find out what they are doing to take advantage
- Gather resources that can help them with these ideas and share the resources
- Make sure they know that your bank or credit union is lending and what kinds of ramp-up projects you can help with
- If they can’t qualify for what they need now, make sure you are familiar with alternatives like equipment leasing or factoring so you can retain the relationship while helping them get what they need
Add to the list
What are your business borrowers doing to take advantage?