Saturday, February 11, 2017

Abandon Ship! What To Do When Your Finances Hit A Rock

sinking finance
Running is a business is a unique experience, but there is one experience all business owners share. That experience is the phenomenon of going through a rough financial patch. For whatever reason, every company has to tighten their belt or even watch their finances fall of a cliff. It is not easy, it is not nice, but more importantly, it isn’t the end of the world.

Get A Quick Loan

Just because your finances are in bad shape doesn’t mean that you don’t have bills to pay. Your lenders might sound sympathetic but they won’t give you a reprieve because they want their money. From their point of view it is just bad luck. Due to their lack of sympathy, you can’t say you refuse to pay anymore. Not only will it hurt your credit rating but it will spiral out of control. The only option is to take out a loan to cover your debts. And don’t worry if you have bad credit as online loans for bad credit are readily available. At least with a loan you can continue to function while you come up with a plan.

Cut Back

Cut back means you have to cut back wherever possible. Some cut backs speak for themselves, like moving offices if the rent is too high. There are others, though, that aren’t as easy to spot. Transforming into a paperless office is a great example. You might think that it won’t make a difference but it makes a big difference. Businesses can spend hundreds and even thousands on paper every year. By getting rid of it altogether you don’t have to pay the costs. Regardless of the amount, you should make it happen. Remember that every little helps.

Hire An Accountant

‘Wait a minute, you just said I should cut back on my business expenses?’ Yes you should, but sometimes to have to spend money to make money. It’s a strange concept to understand, yet it is one that can save your business. Paying for an accountant to look after your finances will save you a fortune in a range of areas. Accountants, for instance, know how to structure your finances to avoid bank charges. They also know how to pay off debts so that you always have liquidity. Their expertise will save you money even if you have to pay them a wage.

Don’t Panic

Finally, don’t lose your head and make bad decisions. The shocking truth is that businesses often kill themselves in this period because they lose focus. As soon as they hear the news, they try and dig straight out of the hole and go for the Hail Mary. Your finances are a long-term project and you should treat them as such. So, take a deep breathe and think about what your next steps are, then execute the steps one by one.

How you react when you are in financial trouble is vital as the wrong reaction can be fatal.

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