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As 2021 continues, the coronavirus continues as well. Even with the vaccine in play, the timeline to full vaccination for large swaths of the country is rolling out on an extended timeline over quarters rather than months. Even the most optimistic models predict that traditional retailing will continue to be muted through the second and into the third quarter. Many businesses that have made it this far are going to have to continue the hard work of sourcing funds, managing with reduced staff and relying on financing and a component of online retail if they want to stay afloat in 2021.

If you’re still find yourself wondering if you can hold on for a turnaround, the most important thing you can do is adjust to meet these uncertain challenges. By far, the biggest adjustment for most traditional retailers has been the switch to online retailing, whether that’s through DoorDash-like delivery services, order with curbside pickup or buy and ship. As 2021 progresses, this shift will be even more pronounced as many customers, who have become accustomed to delivery and pick up on demand will continue to expect these services after the recovery. If you have not made the change yet you most likely choose to in order to meet customer expectations.

Of course, switching to an app based or online format is not easy. It requires training, redistributing assets and building up your existing technology to maximize your capacity in today’s market and the continual shift toward online purchasing. Of course, this all requires money. You may be wondering how you can fund a complete overhaul in your business model. How can you get funds, and what should you put your funds toward? Here are some ways to get the funds you need.


Factoring is a process where a business actually sells off part or all of its accounts receivable invoices to a third party, for a discount. The idea is simple: if a client owes you money, but has not paid yet, that account is basically money you are not getting. Instead of waiting around, hoping that a client will pay (or beginning legal proceedings, which often end up costing more than the account is worth), sell the account to another party. Sure, you sell it for a discounted rate, so you don’t get all of the funds you initially planned for, but the money you receive from the sale is money you actually have, on hand, right now, and can be put to use immediately.

Meanwhile, the buying party stands to make a profit once the client finally pays the invoice. Furthermore, one less open account means less work and hassle on your end. This can also save you money in the long run. It really is a win-win situation.

Asset-based Lending

When people think of borrowing money, they are usually thinking of asset-based lending. Do you have inventory or equipment currently sitting unused due to the pandemic? Right now, many businesses do, and those assets are draining time, money and energy, dragging your business down instead of helping.

Rather than let them continue to be a drain on your bottom line, use those assets as collateral to fund your move to the digital realm. Even if you don’t have unused assets, you can really use anything as collateral – even your current space. Once business picks up, you can reclaim those assets and move forward.

Working Capital Funding

If your business needs a quick shot in the arm, then a long-term asset-based loan might not be what you’re looking for. Instead, a working capital loan is designed to give your company a financial shot in the arm by providing short-term loans to meet your immediate needs. Use these funds to help cover costs as you figure out your next step. Because working capital loans allow you only to borrow what you need, when you need it, you don’t end up over borrowing and paying more interest than you need to.

SBA Loans

If you own a small business, then you no doubt are already aware of the small Business Administration and the various ways it tries to help entrepreneurs as they launch and run their companies. One way it does this is by offering reasonable loans specifically designed to help small businesses. This current pandemic is an excellent time to talk to someone about how to take advantage of programs like this.

Hard Money Loans

Hard money loans are similar to asset-based loans, with one major exception: while asset-based loans typically use assets such as inventory or equipment, hard money loans specifically use real estate as an asset to cover the loan. Because of this, the stakes are a little higher when it comes to this kind of loan.

As you can see, there are several options available to the small business owner, even in these tough and uncertain times. If you are thinking it’s time to overhaul your business model and adapt, you’re going to need funds to help you get there. To find these funds, talk with our loan brokers today.