Surviving during a pandemic

ALL of us have been affected by the pandemic, businesses in particular. From small ones to large corporations, we saw how they tried to stay afloat despite unfavorable conditions such as delayed shipments and collections, manpower and financial constraints, and governmentimposed restrictions. As someone working closely with small and medium enterprises (SMEs), I have seen how their businesses grew but then faltered. It was heartbreaking to hear stories of clients who weren’t able to endure: “Ma’am magsasarado na po business namin (Ma’am, our business will be closing).” Still, some are standing stronger than ever and continue to survive.

Talking and checking up on the situation of clients is a habit at First Circle. I’m personally in awe of how they are able to surpass challenges and keep the business going. Most have shared strategies that worked and the following, based on conversations with clients, are common across industries: Continuing to provide good service. All businessmen want the business to stay relevant and providing a better experience for clients or suppliers is a priority. Doing so is quite hard these days but many businesses are working on it. Also, maintaining good relationships can lead to referrals and possibly more clients.

Rethinking plans for the business. Expansion is a goal for all but then the pandemic hits. Most clients have found that the safest way to control the situation is to postpone expansion as this would help them to reallocate funds. It has also given them the opportunity to draw up plans for the company once the economic situation improves.

Find a better financing partner. A lot of clients gave a lot of consideration into having a secure line with a trusted financing partner. This will help avoid the use of personal or emergency funds. Banks, the Trade department and financing companies, such as First Circle, can offer payment flexibility and discussing options will be better for the business.

These strategies are what most of the SMEs I’ve dealt with are doing at the moment to sustain the business and ensure continued quality services. The government had already relaxed restrictions, which opens the doors to projects and transactions for the holiday season. The pandemic, however, is still far from overdue and businesses might still encounter a lot of challenges. One thing is for sure, the resiliency of Philippine SMEs will never falter whatever difficulties they face.

Hannah Ibay is a senior relationship manager at First Circle. Her main responsibility is working closely with small and medium enterprises from different industries and helping them achieve their goals. You can reach her at hannah.ibay@firstcircle.com.