Building credit as a business is just as important as building credit as an individual. It opens up doors and opportunities. Having good business credit means you can access your credit line if necessary to cover different expenses. However, because interest rates can mean that if you aren’t paying off your credit in full each month your business is paying a hefty fee for its line of credit, it makes sense to seek out alternative financing options, too. It could mean the difference between being in or out of business. Here are a few different ways to tap some extra cash for your business.
Invest in stable stocks or mutual funds.
Investor Mark Wiseman used mutual fund investments in order to cover pension funds in Canada by following a few simple rules. Rule number one is to invest consistently. Even when you’re finding that your pocketbooks are tight, make sure you continue your investment commitment. Your finances won’t be tight forever, so find other ways to cut your budget. Investing at your set rate can make huge financial difference years down the line. You don’t want to count your future-self short.
Rule number two is to invest even if the market is in a downturn. Although the market might seem volatile in the short term, according to Wiseman, the future is bright. You’ll still ultimately turn a great profit. In fact, Wiseman considers the coronavirus pandemic the “opportunity of a generation.” Right now, you’ll be able to invest at a much lower rate than if the market was thriving. Buy in now, because stock fluctuations are generally a blip, the market will continue to go up eventually, and then you’ll be set like never before. Long-term investments help you ensure sustainability over time since you can gradually draw on those funds when you need them. That way your portfolio will keep growing.
Nearly half a million in small business loans disbursed. HELP for Small Business can be credited with giving Harlingen small business owners the opportunity to retain more than 400 full-time equivalent jobs. Money still available, apply online. https://t.co/8Un48BH2Ic
— Harlingen EDC (@HarlingenEDC) August 18, 2020
Look into other loans.
Since you’re just starting out, you’ll most likely qualify for a small business loan. The Small Business Administration gives loans and has other loan resources for people like you. Finding other investors or business loans can give you a helpful chunk of money just like a line of credit. Do your due diligence and check to see if these loans have a lower interest rate than your line of business credit. You may be pleasantly surprised.
Kickstarter is helpful for tech startups and new product launches. Crowdfunding gives you a great idea of what consumers are interested in. Starting here financially can ensure that you aren’t wasting a line of credit on a product nobody wants. Just make sure to account for Kickstarter processing fees and taxes or you might wind up short of your actual production goal.
Increase your profits.
While it might seem strange to go back to the drawing board, sometimes your company’s cash flow issues can be traced to an income problem and not an expense problem. OKR software is one way to ensure that every employee is prioritizing the right goals and spending their time and energy reaching them. OKR stands for objectives and key results, and OKRs are a simple yet powerful framework to help your business reach new heights.
Instead of just saying that your goal is to sell more products or attract more clients, your company will clearly identify what that growth looks like and what steps need to be taken to achieve that sort of success. The result is a clear plan that you can hold everyone accountable to that really helps you achieve your sales goals, ultimately increasing the cash you have on hand for your business.