A financial problems can affect your business badly. It does not only entail a change in the usual working conditions, the departure of customers or the loss of business. It is also the destruction of established stereotypes and the search for new opportunities.

The crisis makes us reconsider the company’s strategy, take a fresh look at the business and look for new incentives for development. With the right behavior, it can become a time for the realization of new opportunities, allowing you to increase market share, optimize business processes, and facilitate the acquisition of new partners.

Not everyone will be able to go through the crisis and come out glorious. Especially heavy losses await the small businesses, which is most vulnerable in a crisis. The vitality of a company depends on how its owner behaves in a time of crisis. There are several ways that you should consider to try and overcome financial problems in your business.

Reduce costs

One of the most important measures in a crisis is to reduce costs to the lowest possible level. Expensive repairs or complex marketing research is better to postpone until calmer times. Analyze the prices of competitors of your suppliers – perhaps you will find someone whose prices will be more profitable, this will also save.

Optimize and cut down on staff cost

Evaluate the effectiveness of each employee and part with those who are not particularly beneficial. Now you have a good opportunity to optimize staff. But here, too, it is important not to overdo it, otherwise, there will simply be no one to work. There should be as many employees as possible to conduct business.

Get an unsecured loan

Qualifying for an Unsecured Business Loan requires that you maintain good credit history otherwise you might not be eligible for an unsecured loan. This kind of loan is a good and widely used option to bring your business out of a loss.

If the demand for your products falls, monthly loan payments can ruin your business further. It is better to get rid of loans altogether: repay them ahead of schedule, if there is such an opportunity, or try to arrange a payment plan with the bank which acts in the favor of both parties.

If without new loans it does not work out at all, and then at least choose a bank that does not overstate lending rates. You could still find banks that provided business loans at lower interest rates.

Review the list of your debtors, leave only those whose financial viability does not cause you doubt. Stop doing late payments. If a company pays irregularly in peacetime, during a crisis the situation will become even worse.

Go local

For those companies whose business is tied to imports, it makes sense to look for local options. If this is not possible, it is worth insuring currency risks. This can be done using forward foreign exchange contracts, which allow you to fix the exchange rate on the day the contract is concluded, and buy it at a later date. If the currency exchange rate decreases during this time, this will protect you from losses.

Efficiency and transparency

Streamline reporting and take measures to increase its efficiency and transparency. Transparent reporting will give you an advantage in negotiations with potential investors, and when communicating with regulatory authorities.

Attract money to the company

Think about which assets you can sell, lease, or mortgage if things get worse. Real estate, machinery, equipment – all this can be tried to be sold or used as security for paying off debts, and the premises can also be rented out.

Revise your strategies

Estimate in advance what niche your company occupies in the market, this will give you the opportunity to maneuver. You can quickly respond to changing market conditions and change your strategy on time.

In times of crisis, opportunities for development are gained by companies in sustainable sectors that do not have a cushion for credit risks. When people begin to count money, it is always in the hands of manufacturers of cheaper products.

Pay special attention to the sales system, increasing its effectiveness. Adjust the target audience of consumers of your products. Develop new standards and a reward system for sales staff. Use the advertising opportunities of the Internet. If possible, arrange promotions and special offers – this will attract additional customers.

Restructuring is a good idea. Think in advance whether there are niches in the market where your company could go in the event of a strong drop in demand. Think of which restructuring strategies can be useful to bring your company out of a financial problems. Think of providing products and services which are more in demand and also consider revising the organogram of your company.

Pay special attention to relations; do not spoil relations with partners and lenders, even if the situation is trying to force you to do so. If you understand that you cannot fulfill your obligations on time, be sure to inform the bank or partner about this. Warn honestly about the difficulties encountered and remember that the bank is interested in finding a mutually acceptable solution together with you. First of all, your reputation depends on how honestly and openly you interact with partners, and, unlike the crisis, it will remain with you forever.


Everything changes and so will the time of financial crisis. Like a tsunami or a typhoon, a crisis will not last forever; sooner or later it will end. People living near dangerous zones cannot escape a natural disaster, but try to prepare well for it – to strengthen the walls of the house, build protection, stock up on food for the future. The same thing is in business, the better you prepare for the difficult times, the higher the chances that your company will be able to survive them without drastic losses. It has long been known that not the smartest but the most organized survive in a crisis.