It’s natural to feel a sense of accomplishment after your business gains access to a business loan or line of credit. However, once your business obtains financing, there is still work to do, including the following tasks.
Predict Cash Flow Strains
One way to make the most of your business loan or line of credit is to look ahead to see when your business might face cash flow problems. This way, you’ll have a plan for how to handle times when cash is a bit tighter. Take a look at your fixed and variable expenses. Make sure you have enough money set aside to meet those costs and handle events like seasonal surges and slumps. And always keep an emergency pool of money set aside.
Keep an Eye on Your Credit Score
After obtaining financing, it’s important to keep an eye on how it’s impacting your credit score. As explained by the Small Business Administration, your business credit score is “a gauge for the financial reputation of your business.” You can get a copy of your business’s credit report from agencies like Equifax, Experian, and Dun & Bradstreet. On it, you’ll see data like how much debt your business has taken on and how that affects its score, which can be helpful when gauging whether or not to pursue additional financing.
Set Up Plans to Pay
A business loan or line of credit will do more harm than good if you fail to make payments on time. If you’re not using your lender’s auto-pay feature, be sure to set up an alternative reminder system to make sure you don’t miss any payments.
Pounce on Opportunities
It’s important to be responsible with your new funds, but don’t let that stop you from pouncing on opportunities. Research the ROI on each, and then feel free to press forward with activities like establishing new product lines and making your marketing operations more robust.
Kasher Capital has many funding options for businesses. To learn more about them, get in touch today.