Does Your Body Shop Have Enough Working Capital To Survive Covid-19?
The truth is most body shop owners think that they do, but are most likely tragically wrong. As we all know this world wide pandemic has put a halt to most if not all industries. One of the most impacted is definitely the body shop industry and in more ways than almost any other industry by a series of chain reactions. Besides pointing out the obvious which is government shutting us all down and not permitting anyone to have employees working (Not even on current jobs) we also have to consider the double edged sword in the room…Less drivers on the road means less accidents and in turn less work for the local body shops in every region of the country.
Although this is good news for humanity it is terrible news for our businesses that survive on those fender benders and insurance claims. This is just the beginning of hard to swallow facts regarding the uncertain future of many shops that may not have the working capital to stay open and ready for the moment when the government deems it safe to go back to 100% capacity.
As of this moment the Federal and State governments are going in and out of mandated shut downs (contradicting each other at times) as if our lives were some game of hopscotch based on virtually unverifiable data that is interpreted in every which way. The same government who forced us to shut down our establishments are dragging their feet when it comes to properly funding millions of small to medium sized businesses that were promised a $10,000 grant regardless of size or FICO and up to $2,000,000 in Economic Injury Disaster Loan funds for any business that filed 2019 Tax return (Extensions Accepted) and has a 570 Minimum FICO.
Although endless amounts of action is being taken from all angles with our senators, citizens and congressmen the dreadful economic impact this has, is and will have on our body shop clients will live on. The fact is no one knows exactly how long this pandemic and all of its restrictions will last, nor does anyone know when said funds will be available to us. How long can you afford to operate at 50% capacity before your overhead eats you alive? Or worse…How long can your shop stay shut down before you can no longer pay your employees or have the revenue to pay for the next job?
That is why VIP Capital Funding has committed itself to being a staple in the Automotive Body Shop community and offer complimentary consultations to anyone interested in discussing the options available to you and your business regarding access to working capital.