Alana Halaliku is a Senior Business Relationship Manager at Coastal Community Credit Union
NANAIMO – As BC reopens the economy, the ability to remain agile and adapt to challenging times has never been more important. Some Island businesses have been re-evaluating their operations to see if there are inventive ways they can pivot to adapt to the “new normal.”
For example, we’ve seen distilleries start to produce hand sanitizer, clothing companies fashioning masks, and independent labs contributing their skills to better virus detection.
Businesses are also thinking outside the box to keep cash flow coming in. They might be exploring how they can take their enterprise online or implement new delivery models. Maybe they want to take advantage of reduced in-person traffic and remodel their business space.
The issue? All of these ideas need access to capital. With the CEBA program projected to end August 31st, refinancing may be an option to consider.
If you’re planning to pivot an aspect of your business, the first step should be to talk to your financial team. Knowing you and your business, they will work with you to decide if refinancing is the best option to meet your goals.
What do you need to refinance?
To refinance, you’ll need to show an updated Business Plan. You’ll want to include:
- An overview of your current business and the proposed new business stream;
- Your current and projected sales and marketing strategies;
- Your day-to-day operations plan, with any changes due to COVID-19;
- Your ownership structure and management experience and history;
- Your financial plan with:
- Your business’s historical financials and forecasted cash flow for your existing and new business; and
- Any capital requirements—don’t forget to include any outside resources you can access.
The current pandemic has shown the value of including a continuity plan in your overall Business Plan. Identifying business risks and how to mitigate them will help you steer your business through rough waters.
At Coastal Community, we never forget that small and medium-sized businesses are the cornerstone of our Island economies. Credit is due to the Island businesses that are bravely facing these unprecedented challenges. We applaud your efforts!
Alana Halaliku is a Senior Business Relationship Manager at Coastal Community Credit Union. For more information on refinancing your business, call 1.888.741.1010.