Jared Jeffrey Davis currently, countries and states across the globe are preparing to handle the increase in COVID-19 fatalities and infection rates. Governments have improved their public health infrastructure and have implemented several financial safety measures aimed at helping small business owners and manufacturers. Additionally, governments have begun cooperating with the private sector to mobilize resources to face new challenges.
Businesses will suffer if they cannot find innovative ways to adapt to the current economic climate. Despite the understandable roadblocks in the form of social distancing and nationwide shutdowns, various private sector investors are attempting to make the most of these new challenges.
Jared J Davis Sandusky, Ohio, on resolving financing challenges
The objective of impact investing is to make use of investment capital for positive social, environmental, and financial outcomes. However, the private sector is currently functioning under exceptional circumstances; there are several financial firms witnessing unwarranted funding problems. Impact investment actors can be of assistance to these firms by helping to overcome roadblocks through flexible funding methods. According to Jared J Davis Sandusky, Ohio, a business owner, global logistics and supply chains are under immense stress, especially those that originate in China.
Intermediaries are witnessing the back-end problems such as disrupted land logistics and cargo caught up in locked-down manufacturing centers in China. Due to working capital risks associated with pending payments and rapidly changing demand patterns, international shipments need to sync accurately with changing prices. Intermediaries should opt-in for the pre-decided delivery dates and costs related to healthcare service providers. Additionally, they must pay the full cost upfront to manufacturers.
Advanced financing structures
Mission focussed and traditional microlenders can offer concessional funding to a temporarily unemployed workforce, however, these are not livelihood loans, they are the inverse of it. This demographic exists beyond the regular comfort zone of these lenders, many of the people in this demographic do not have bank accounts and have very little in the way of assets. The lack of liquidity and steady income in this demographic makes them a particular risk for microlenders. Due to the lack of any significant assets, these loans are usually issued with steep and sometimes predatory interest rates. Thankfully, there are private groups and corporations that want to fundraise and donate to this same demographic; there is real potential for a synthesis between donated funds for humanitarian reasons, and capital invested for profit that will generate a multiplying positive impact.
The crisis caused by the pandemic is ongoing, it will significantly—if not permanently—affect the way our logistical, financial, and healthcare ecosystems function, and this in turn will influence the way impact investors to function. Telemedicine, an advanced vertical of the healthcare industry, might finally be here to stay; experts even suggest that diagnostic services could move towards a point-of-care system. Regardless of the chance that several customers may drop off as the pandemic ends, there will be a significant portion that will continue using telemedicine services.