Are Trades Really Back In Business For COVID-19 Alert Level 3?
We’re heading into level 3 and that means trades are back in business. But before we pop that reasonably priced bottle of sparkling wine celebrating being back on the tools, is your business really prepared? With so much capital drained away by rent and wages without any income, is your trades business going to be able to kick back into gear?
Your biggest challenge: working capital
Over the weeks of COVID-19 alert level 4, many businesses were struggling. Business owners have had to make hard choices about staff employment and keeping their business running when there is little to no income coming in. This has struck construction and trades enterprises especially hard – it’s tough to build a home or make repairs remotely, after all.
This has meant that brickies, carpenters, sparkies and all the other trades professionals have continued to pay rent on premises, stock, wages and storage without any ability to get paid. And after 4 weeks, any remaining “leftover cash” is beginning to run out.
While there has been support in the form of the wage subsidy and similar, for many businesses, it simply hasn’t been enough. Working capital, which has always been important, is now more precious than ever.
The hard times are over – or are they?
With the recent announcement of the lift of level 4, there is a light at the end of the tunnel. Construction and trades have been explicitly mentioned as businesses that can operate in level 3 – and there’s sure to be a significant amount of demand from consumers who have been patiently waiting for these services.
It’s time to start earning again, but there’s still the roadblock of a lack of working capital. You can’t afford the materials, equipment and crew you need to get back to work. Plus there’s the extra health and safety measures you have to take into account for COVID-19.
It’s a catch-22. You’ve been using your cash to sustain the business until you can work again, but now that you can work again, you don’t have enough reserves left over!
What’s the solution?
The solution is simple: a working capital loan. These one-off cash injections give you the capital you need to take advantage of the new opportunities offered by the drop to level 3.
“But wait!”, you might say. “I tried to get a working capital loan during level 4 and my lender said they couldn’t help.” The problem during level 4 for your lender was the same as the problem for your business: there was no income coming in. Without proof of regular income, your lender couldn’t let you take the risk of a loan and its repayments.
Now that you’re able to work again, you’ll find that your lender will be far more willing and able (enthusiastic, even!) to help you get back to it.
Level 4 will soon be gone and Level 3 is hopefully here to stay until the country is ready to drop further. Construction and trades businesses can get back to work, but their available cash is running low and they need an injection. A working capital loan, now available due to the promise of future income, is a quick and easy solution.
But you must not wait until you desperately need the cash after ANZAC weekend. Get in touch with your lender now to get the ball rolling and ensure that when opportunity knocks, you can answer the door with your kitbag already in hand.
Apply for a working capital loan with GetCapital now and get the cash you need.