So, you’re the owner of a small business or start-up and want to start managing the finances better? You’re not alone. In the current economy, times are harder than ever, especially for small business owners with less experience than the big players in the industry. As a result, managing finances and boosting cash flow can seem like a constant uphill battle, but it doesn’t need to be that way any longer.
By implementing these financial tips and tricks, you can transform your small business for the better, whether you’re a freelance web designer or a handyman.
Try Invoice Factoring
Invoice factors, also known as invoice financing, is an incredible tool that small businesses can use. At the moment, you might have a ton of invoices that haven’t been paid by clients. This can put a serious strain on any business, as it negatively affects cash flow and makes life difficult for everyone involved in the business.
The solution is incredibly easy: try invoice factoring services.
FundInvoice offer invoice factoring services.They guide businesses in the right direction to factoring companies that can give small businesses funding against any outstanding invoices they have. As business finance brokers, FundInvoice will put you in touch with the factoring companies that best suit your needs. Let’s say that you have an unpaid invoice of £10,000. They will help you find a factoring company that could potentially unlock the majority of the value of that invoice via invoice factoring. Then, once your client pays up, you can then pay back the funder.
This is something that countless small businesses around the world are now doing. Whenever they have any outstanding invoices, they simply turn to a financing company, with guidance from a broker, to receive direct cash (with the invoice used as security against it) and then carry on with their day-to-day business operations.
If you’re currently experiencing cash flow problems and clients who are being too slow to pay their invoices, you should definitely try invoice factoring. It’ll transform your business for the better without affecting your debt-to-income ratio.
Go Hybrid
Here’s some exciting news: 76% of UK companies have gone hybrid. What this means is that more companies than ever before are now allowing employees to combine working in the office with working from home. Not only does this help create a perfect work-life balance, but it also enables businesses to save lots of money in the process.
In several cases, some businesses have gone fully remote by shutting down their offices. This has enabled them to eliminate leasing and rent costs, which has ultimately boosted their finances beyond belief!
Separate Your Business and Personal Finances
As a start-up or small business, you likely have some personal finances tied up with business finances. This is completely normal, as you’ve likely signed personal guarantees for loans and other similar things. However, it’s essential that you try to separate business and personal finances moving forward so that you can shift liabilities entirely to your business. This way, you won’t be personally responsible for any debts against your small business!
Hire an Accountant
If you haven’t already, consider hiring an accountant. In some cases, small businesses can’t afford to hire full-time accountants. To counteract this, they simply use the services of freelance accountants. As a result, the business saves money while still gaining access to the accountant’s services if and when they need them.
Keep a Good Business Credit Score
Keeping a good business credit score can be hard. If you want to improve yours, make sure to:
- Open a business bank account
- Always pay your bills on time
- Stay on top of taxes
- Limit credit applications
Doing all of the above will automatically improve your business credit score.