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Loan Alternatives for Small Business Owners and Employees Affected by COVID-19  

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The recent COVID-19 pandemic has taken a toll on all businesses and jobs in the entire world, especially for small companies where they rely on continuous cash flow and profit to sustain their stability. Food establishments are taking heavy losses and taking delivery options as an alternative, other non-essential services are closing down, and people are going jobless because of owners trying to save money by cutting off employees.

Overall, this has been an unfortunate event for owners and the working force. While our primary source of profit is unavailable for us, we can still take options to at least get to our day to day living. It’s best to look for other options to help us get back on our feet. And these are loans.

Naturally, working people and business owners are taking necessary financial steps to keep afloat, relying on loans more than ever. In this article, we placed loan options where you can get quick and fast cash. Not only that, but these options are also for people bearing bad credit scores.

Here are some loan alternatives for business owners and workers affected by the pandemic.

Collateral Loans

Collateral loans are one of the better options of getting approved on installment loanboth for business and homeowners. Companies can work with stock loans, while workers and people facing unemployment can opt for auto loans or homeowner loans.

Stock loans work better with companies facing slow cash flows and profit. As the name implies, your business can set up a loan using your stocks as collateral, and this improves your chance of getting approved, provided that there’s collateral of similar value.

Homeowner and auto loans are similar to the stock loans stated above, except that this is best for workers and people with personal properties on hand.  You can opt for Home equity loans in which you use your own house as collateral and pay the balance every month.

Alternatively, you can file for Home equity lines of credit, also known as HELOCs. HELOCs are homeowner loans, but instead of getting large sums of money, you can use this as a credit card. You are funding your daily needs first then pay the balance after some time.

On the other hand, Auto loans can be useful as well to sustain your family for a moment. These are offered in banks and car dealerships using your car as collateral and providing you the loan amount depending on the car’s value.

Keep in mind that collaterals are being used for this loan, and you should be confident that you can at least pay the minimum required amount on time under the contract agreement.

Line of Credit

Line of credit, also known as LOCs are loan options fit for the business. What it entails is that you set up an engagement between the financial institution to an agreement that you can loan numerous times under a set limit and pay the minimum plus other taxes and interest rates monthly or quarterly. And it comes with two options, secured and unsecured.

A secured line of credits is attractive options for business owners since they offer lower interest rates, higher credit maximum limits, and overall flexibility with regards to payments by providing collateral with high value. On the other hand, the unsecured line of credits non-collateral agreements in exchange for higher interest rates, lower credit limit, and costly transaction fees and different penalty rates.

Online Loan Websites

Loan options for small businesses and homeowners have reached online accessibility. For individuals facing significant financial constraints and issues with bad creditscores, then reaching out for online loans is highly recommended.

Online loan websites work the same as traditional banks, but they offer loans with higher approval rates and often come with non-collateral agreements. The catch is they will ask for higher interest per payment and limited amounts you can borrow. Alternatively, some websites host a network for different private lenders known as peer to peer service.

From there, you can sign up and look for private lenders that offer different ranges of amounts they can give out with their interest rates and payment options. This is a better alternative if you are looking for more choices and look for someone with loan agreements in favor of your financial health.  Peer to peer lenders have significant variations and may come with collateral agreements.


Recent events have tested our capabilities to keep our financial health stable, and loans are always an alternative to rely on. There are countless loan options from different sources that you can use for your flexibility but always take into consideration that this is still business as usual.

Take time to select your investment options carefully. Be realistic and make sure that full repayment is attainable and manage your risks well.

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