How to Ensure Fiscal Fitness of Your Business This Year?

Summary: Do you think your business is fit enough to survive any challenge that comes its way? If not this article will tell you what you can do to ensure the fiscal fitness of your business.

With the oncoming of the New Year, many business owners start focusing on their physical fitness; but fiscal fitness is also equally important especially if you want to secure the future of your business.

Considering the kind of advancements that are happening on the technology front and the tough competition present in the market today, there are many challenges that your business must be prepared to face. Market fluctuations, competitive challenges, cashflow issues, withering credit – there are many more. Unfortunately not many businesses are in great fiscal shape to weather such challenges. This is why nine out of ten start-ups fail within the very first year that they come into being.

Having a source to get your funds from is good; but you will also have to think of paying back your loans. You will have to prepare today to face the next recession or downturn in your industry, no matter how far it may be. You may be able to manage physical flabbiness; but you can’t afford to face financial flabbiness. So, start working on building the muscles that will help your business to remain lean, agile, and resilient, irrespective of how hard the times get. After all, you never know when the next downturn may be due. So it makes sense to start ensuring you have the money that you need, whenever you may need it.

We all want to live out our golden years without a worry in our minds. We want to see our grandkids graduate. So we don’t ignore our physical health. Similarly we should also care for the fiscal health of our businesses. We will have to make sure our business passes the stress test of cash flow and financing. We will have to start building on those financial muscles before we get into any crisis.

Majority of the businesses face problems because of not receiving their receivables on time. This leads to a whole lot of cashflow issues, making it difficult to settle their overheads and pay their bills on time. Banks not approving their loans adds to this. Fortunately there are many ways for businesses to obtain the necessary financing without having to face stringent restrictions.

You can be your own source of financing

Not having to rely on anyone for finance could be the best thing that could happen to a businessman. This is possible if you have taken out a dividend-paying whole life insurance policy that is of high-cash value. You will easily get a loan from the insurance company and you don’t even have to bother paying it back, if you are ready to forego some of the death benefits or accept a reduced cash value at the end. Nonetheless, you might have to wait until you have built certain minimal cash value on your policy.

When it comes to borrowing from a life insurance policy it is always better to treat it as a loan. The only thing here is that you are borrowing from yourself. You continue to pay the interest, although at a reduced rate. This way you will have the money to run your business and you will also be saving for your retirement. The best part here is that you won’t have to submit any financial statements, or get the approval of any loan committee. There are no credit checks and no bureaucratic hassles.

Many business owners have now started using their life insurance policy loans to bid goodbye to crushing interest payments and expensive borrowing costs. You can too.

Try Invoice Factoring

If your business depends a lot on receivables and you are facing problems with the invoices not being cleared on time, you can try invoice factoring as an option to solve your cash flow problems. Here the factor will lend you a cash advance on the basis of your to-be-paid invoices, albeit at a discounted rate. You can pay him back once your invoice is cleared.

Check out merchant cash advance

Merchant cash advance is one more option you can try if your business is making a decent amount of money through credit card sales. This could be a great option if you need money to expand your business, buy equipment, or purchase necessary supplies for your business. The best part here is that you can get the money online within the shortest span of time and the repayment is also very easy. A fixed percentage of the amount gets automatically transferred into the merchant’s account as and when you swipe a credit /debit card at your point of sales.

There are many merchant cash advance providers who contact businesses through merchant cash advance live transfer leads. Although they may charge high interest and fees, you still stand to gain because of the time you will be saving in business.

Businesses always need steady access to cash, whether it is to bridge receivables, buy inventory and necessary supplies, or seize the next growth opportunity. So whether you want to sign up with a merchant cash advance provider who comes to you through merchant cash advance leads or try any other option, it is important that you do the necessary homework, before you face a crisis. Get to know the pros and cons of each and every option and find out which one works out the best for you. This way you will always know what to do when it comes to facing any challenge.