If you haven’t felt the effect of the financial crisis, you are quite lucky because I don’t know anyone who isn’t affected by it. My mom who runs a small shop that subcontracts jobs from big garment manufacturing companies noticed that job orders don’t come as often as they used to and her contractors are boldly begging for her to lower her quotations to the limits. In her despair to get some job contracts, she gives in to the demands of her contractors barely leaving her with profits. My mom’s business is too small compared to the company where my husband works but both felt the collapse of the economy.
My husband is in automotive industry so they are among the top businesses that are badly hit by the recession. He, as an employee, felt it too specially in the last two months. A designing project which normally needs 10 engineers to work on it is now forced on lesser number of engineers so that means my husbands and his colleagues will have to work more because their company cannot afford to hire additional staff.
Business owners this time are paddling so hard to fight the currents but what would work if your business is already way down the bend? Would a business loan help it cope with the slump? Maybe. But before you even consider getting a business loan, it is better to consider another source of funding and that is personal savings. If you have faith that your business can get back on track, why not use your own money. In this manner you won’t be worrying about interests and monthly payments. But if personal savings is not an option then get a loan but just be careful to choose the one that is for your business’ interests. Go for loans with lower interest rates and no closing cost or fees.