The novel coronavirus pandemic is having a devastating impact on the economy and businesses in most sectors.
Yet some companies have capitalised on the new reality and discovered opportunity in the global response to the pandemic and new reality.
Business in the time of COVID-19
There will always be people and businesses that try to profit from a crisis.
In the case of the COVID-19 pandemic, most businesses that have profited have done so by providing vital supplies and services to help combat the spread of the coronavirus.
Manufacturers of hand sanitisers are the best example. They haven’t changed their business model. Demand has simply increased exponentially because of the pandemic.
These businesses are the obvious candidates for increased sales but other enterprises are benefitting from our new way of living.
Businesses booming due to the pandemic
Some businesses are experiencing increased demand for their goods and services now, but others will see a boom in demand when the lockdown is eased.
Sanitising products
Makers of products used to sanitise factories, offices, goods and surfaces will see a surge in sales.
Producers of products like bleach, antibacterial soap and disinfectants will continue to see a dramatic growth in demand.
Personal Protective Equipment
Personal protective equipment (PPE) has seen a boom in demand that’s been hard to satisfy, especially for medical masks, face shields and gloves. Manufacturers will continue to see inflated sales.
eCommerce
Many people have started shopping online since the start of the pandemic. Currently, the main demand is for food and other essentials items. When the lockdown is eased, many people will avoid crowded shops in favour of safe online shopping for other items, including clothes and electronics.
Delivery services
The growth in online shopping will continue to impact delivery services, which will be in more demand than ever. Delivery and logistics companies will need to expand to cater for a wider range of goods.
Food deliveries and takeaways
Grocery shops have seen an increase in online orders, especially for the elderly. Food parcels and fruit-and-veg box deliveries will continue to experience increased demand. Once restaurants are free to operate, takeaway orders will boom.
Apps and cloud computing
For those who can, working from home is becoming a way of life. This has increased demand for online apps and services that facilitate productivity and work-related communication. Video conferencing, in particular, has become vital so that people can hold regular meetings.
Social media networks
Social media networks have seen an increase in users and traffic, especially those offering news and information on the pandemic. Social media is being more widely engaged because people are spending more time at home.
Home entertainment
Television and film production has been temporarily halted but the demand for streaming services has increased. The demand for other online content, such as podcasts and YouTube channels, has gone up. The demand for televisions will also increase when the lockdown is eased.
Pharmaceuticals
Pharmaceuticals and medicines that treat COVID-19 will see an increase in demand. There will also be a surge in demand for medications to treat people suffering from any physical and psychological effects of the lockdown.
Short-term loans for struggling businesses
Many businesses are struggling to maintain revenue and cash flow during the lockdown.
At Lamna, we offer fast, discreet loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or artwork.
For more information about using an asset to secure a fast loan in South Africa, contact us on 086 111 2866 or simply complete and submit our online application form.
ILLUSTRATIVE EXAMPLE
Client borrows R10,000 for 90 days.
Loan Amount | Repayment Period | Monthly Interest | Total Cost of Loan | Initiation Fee | Monthly Fee | APR |
---|---|---|---|---|---|---|
R10 000 | 3 months | R500.00 | R2 914.50 | R1 207.50 | R569.00 | 60% |
Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.