Driving Business Success Through the Pandemic, Session one: Ensuring Liquidity Amid an Unstable Economic Landscape
Popular Bank’s Manuel Chinea and Latin Biz Today’s Eli Mendoza Team Up to Discuss Small Business Solutions in Nine-Part Video Series
Popular Bank and Latin Biz Today have teamed up to tackle the unique and pressing challenges facing Latino small businesses amid the COVID-19 health crisis.
Leveraging their unique industry expertise, Popular Bank Chief Operating Officer Manuel Chinea and Latin Biz Today advisory board member Eli Mendoza have collaborated to host Driving Business Success Through the Pandemic, a nine-part virtual discussion series that aims to empower small business owners to successfully navigate immediate and ongoing challenges and opportunities.
“Latino-owned businesses had been growing at an accelerated rate prior to the pandemic. We want to do everything we can to provide guidance and resources, especially during this very difficult time, so they can continue to build on their success,” said Chinea. “It is critical to adopt and evolve sustainable business practices that can prepare businesses to quickly adapt to unforeseen changes in the environment. The initiative does just that, focusing on key areas such as financing, strategic planning, among others.”
Addressing important issues including strategic business practices to navigate liquidity, capital infusions, and the ongoing Small Business Administration Paycheck Protection Program (PPP) forgiveness, the introduction of Driving Business Success Through the Pandemic comes at a critical time for small and micro businesses across the United States. According to a recent survey conducted by the Stanford Latino Entrepreneurship Initiative, 86% of Latino small business owners reported significant negative impact on their businesses by the pandemic, leading to many small business owners seeking new financial relief tools as reopening guidelines continue to change.
“As we continue to face the fallout of the COVID-19 health crisis, it is critical to support the growing and changing needs of Latino small businesses during this time,” said Mendoza, who also serves as a partner with private equity group Siris Capital. “In partnering with Popular Bank, Latin Biz Today aims to help them identify unique and effective solutions to help them succeed.”
First discussion: Ensuring Liquidity Amid an Unstable Economic Landscape
Key takeaways from the first discussion: Ensuring Liquidity Amid an Unstable Economic Landscape
- Liquidity is the lifeline of a small business, as it measures the ability to meet short-term obligations. For many small businesses, the COVID-19 pandemic has impacted both sides of the equation: it has adversely affected short-term assets, while also raising near-term expenses, including, for example, the costs of transitioning to a remote work force, keeping employees safe and workplaces operational, and one-time downsizing costs in the form of severance and write-offs.
- Know your finances. When facing the long- and shot-term implications of the pandemic, small business owners must make it a practice to take full inventory of their financial profile – including savings, income, and debts – to understand the adjustments they will have to scale to stay fiscally afloat and plan for the future beyond the immediate disruption.
- Cost structuring is a key pillar to success. Small businesses will likely need to consider cutting expenses and belt-tightening during this time. To do this, evaluate both variable and fixed expenses, including travel, entertainment, rent, and payroll to better understand how to streamline operations for more efficiency and preserve liquidity. This restructuring and agility may help drive long-term efficiencies and profitability.
- Lean into relationships with customers and vendors. Managing payables and receivables is an important part of ensuring liquidity. Work openly and honestly with your vendors during this time to discuss restructuring payment loads and costs for the next 6-12 months. Similarly, now is a time to work closely with customers who may be slow to make payments. In being creative, patient and forthcoming, you will not only find a solution that will keep your payables and receivables manageable during this time, you will effectively strengthen business relationships to drive success well into the future.
About Popular Bank
Popular Bank is the mainland subsidiary of Popular, Inc. (Nasdaq: BPOP), which ranks among the top 50 U.S. banks by assets. Popular, Inc. brings more than 125 years of success in banking, driven by integrity and values. Popular Bank leverages its financial expertise to enable customers to focus on what matters most. Leveraging its institutional depth, Popular Bank works side-by-side with business and retail customers delivering competitive business and retail offerings including Retail and Private Banking, Commercial Lending, Mortgage Services, Association Lending, Healthcare Financing, and Middle Market banking. Popular Bank has branches in New York, New Jersey, and Florida, and provides 24/7 digital banking solutions and access to 55,000 ATMs through the Allpoint network.1
To learn more, visit PopularBank.com or call 1-800-377-0800. Find out more about Popular Bank’s commitment to community service at PopularBank.com/About-us/
1Popular Bank and its affiliates are not affiliated with ATM National, LLC. Allpoint is a registered Trademark of ATM National, LLC.
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