Planning in advance for your business finances will take the weight off your shoulders. Financial planning will also direct management and create security in your business for years to come. It will take a lot of adjustment in your personal and business budgeting. The most important thing here is that you balance expenses and costs, while saving up for the rainy days.
Here’s a general plan that you can follow through in managing your finances.
1. Take a Look at Your Personal and Business Finances
It’s recommended that you separate your personal and business bank accounts. It also goes the same with your personal and business financial goals.
There are times when your personal finances may overlap with your business, and vice versa. The problem with this is that you might compromise your funds for personal expenses, children’s education, or retirement in favour of growing your business. Don’t scale up your business in such a way that you will have no savings for the future. Create a budget for your personal needs and business operations. Allocate different bank accounts for those two areas.
2. Consider Other Financing Options for Your Business
Securing funds is one of the biggest hurdles in running a business. Most entrepreneurs would turn to their savings, credit cards, family or friends for additional financial support. Financial advisors would usually urge business owners to seek out funding such as loans and other financing solutions to withstand any challenge in business.
If you want to take out the hurdle in researching what are the financial options available for you, check out our loan comparison tool here at Bizzloans. We’ll match you with the right solution for your business needs.
3. Push For More Revenue
It’s essential that you track and analyse all of your business expenses, while ensuring that the business can generate enough revenue. It may take some time before you hit ROI, but you’ve got to make sure that the business is profitable for it to be sustainable in the long run. Set aside a part of your profits for the future growth of your business. Ensure that you reach your target sales every month, and anything extra can be re-invested to your company.
To know more about how you can boost your business cash flow, check out the following guides:
How to Improve Business Cash Flow
11 Practical Ways to Generate More B2B Sales Leads
9 Cash Flow Mistakes to Avoid in Your Business
4. Manage Your Taxes
Your business’s tax requirements will depend on your organisational structure. It’s well recommended that you take advantage of accounting software such as Xero or MYOB to help manage your finances. You can also consult with an accountant or tax attorney to ensure that you are not missing anything regarding the specific financial concerns of your business.
5. Don’t Forget to Plan for Retirement
Go for a company retirement plan to align your personal and business financial planning. It will include an optimum contribution rate and company matching that will maintain employee loyalty. For every profit that your business earns, you should always set aside something for you and your employees’ future.
6. Estate Planning and Business Succession Plan
Estate Planning involves creating a will and family trust for personal and business assets to be properly managed in the event of a person’s death. Seek out legal counsel on how you should leave your assets to family or relatives. Properly allocating your assets to your loved ones will help them in case you won’t be able to provide for them anymore.
A Business Succession Plan also comes when you have to leave your position within the company. A succession plan will allow a smooth transition of leadership. It can also address a lot of financial and tax matters that would go along with it.
Grow Your Business with the Best Financing Available
Bizzloans matches you with the perfect business loan for any purpose. We take out the hurdles in getting the most suitable loan for you over the hundreds of products in the market. Comparing lenders with us won’t affect your credit score, and you can get funding within 24 hours. Start your way to better financing with a free quote below.
No Security Necessary
The main thing that makes unsecured loans more attractive than secured loans is the fact that they’re no security. It might be an obvious thing to highlight but it clearly matters. You won’t be weighed down by the pressure and worry associated with having collateral hanging over you and potentially being lost to the lender if you fail to make repayments. If you don’t want to take the risk of losing your collateral, you just need to opt for an unsecured loan instead. It’ll allow you to avoid any risks associated with secured loans.
Build Up Your Future Credit Score
By taking out a loan and then paying it off on time, you will help to build or repair your credit score. Many companies are dealing with poor credit, but by taking out an unsecured loan with a lender that is happy to lend to companies with poor credit, you can start to turn the situation around. Meeting regular repayment deadlines shows the world that you are able to stay on top of your financial obligations and pay off the money you owe, and that will only help your business going forward.
Why Your Business Might Want to Take Out an Unsecured Loan
There are lots of reasons why your business might take out a loan, as well as reasons not to. You shouldn’t take out a loan to cover running costs, but if you want to do other things, such as the things we’re going to discuss below, an unsecured business loan can be ideal.
Grow and Expand
Most entrepreneurs have big plans for their businesses. They want to ensure that their business is one that’s got a bright future. So if the time has come for you to grow and expand your business, you should think about whether taking out an unsecured business loan might help you to do that. It could be exactly what you need to get your business moving in the right kind of direction. It takes money and investment to grow your business and a loan might just be the ideal solution.
Take on More Clients and Customers
If your business doesn’t currently have the resources to deal with more customers and clients, it could be time to scale things up. However, that’s something that costs money, whether you like or not. Taking out an unsecured business loan could help improve the resources your business has available. It could mean hiring more people so that you have the human resources needed to take on more clients and make more customers happy. The loan will cover the costs associated with doing that and it’ll pay for itself if you’re able to improve your profits as a result.
Fund a New Marketing Campaign
Maybe it’s the case that attracting new customers to your business is where your problems lie. It’s not always easy to get your voice heard and make people aware of why they should be taking notice of your business. An unsecured loan could be used to fund a new marketing campaign that gets your message out there and makes more people interested in your business and what it’s offering. So if you have an idea for a marketing campaign that you think might work but you don’t have the financing for it, consider a loan.
Improve with Fewer Risks
The chance to improve your business in the many ways mentioned above offers you a real opportunity that you might want to grasp. Secured loans can offer the same access to financing but come with more risks to your business. With an unsecured loan, you can reap all the rewards that come with having the cash to invest in your business without having to worry about the risks adversely affecting the business in the future. The chance to improve with fewer risks attached to that chance should not be ignored or dismissed.
The Requirements for Getting an Unsecured Business Loan
There are some requirements you’ll need to be aware of before you take out an unsecured business loan. These aren’t too harsh or restrictive at all, but they are important.
24 Month Limit
When you take out an unsecured loan from Bizzloans, you have to pay the loan back within 24 months. That’s the maximum repayment term that’s on offer. Of course, that won’t be a problem for the vast majority of businesses out there. It’s important that you look at the finances closely and decide for sure that this is something your business is going to be able to do. You’ll have a chance to do this when you get a quote from us, so you’ll know exactly what you’re signing up to.
Business Bank Statements
To ensure your business is in a financial position to take on a loan of the size you’ve applied for, you’ll need to simply submit your business’s bank statements. This allows us to ensure that we lend responsibly and don’t burden you with a debt that is too much for you to take on. It’s in both your best interests and ours that you’re able to handle the loan that you take on.
Photo ID
To ensure everything is correct and proper, and you are who you say you are, you have to submit a photo ID. This is common practice and ensures that all financial transactions are above board and in order. It’s very easy to do and needn’t be a headache for you. Once we are satisfied with your application, you’ve provided the bank statements and we’ve checked your ID, it won’t be long before you have access to the loan you applied for.
Getting an unsecured business loan for your company could be just what it needs right now. It’s a much safer option than taking out a secured loan and you’ll be accepted much faster. Don’t hesitate to get in touch with us here at Bizzloans if you’re thinking of taking out an unsecured business loan.
